Cigar seller rejected by PayPal

[jerseyjoe]

I'm about 85% finished construting a CC to sell premium hand rolled cigars. Earlier this week I guided the owner through the process of setting up a PayPal account.

We got a bounce-back email, obviously from a filter that picked up the word "cigar" in the business name. It explained that PayPal accounts may not be used for tobacco sales because of their concern about complying with the variety of state-based regulations. I assume that a major issue is taxes.

Taxes on tobacco products and related regulations, vary from state-to-state. I can see PayPal's point and suspect this will be an issue with card processors other than PayPal.

So now we are going to have to use a mail / fax system until we can figure out how other retailer are handling it. If anyone has insight or can suggest a card processor who knows how to handle this situation while complying with the laws, I'd appreciate hearing.

For example, how does one account for taxes to the variety of venues into which cigars are shipped?

[Guest vrakas]

I dont get these PayPal guys anymore

Try 2checkout but i am not sure if they accept tobaco.

[jerseyjoe]

I dont get these PayPal guys anymore

Try 2checkout but i am not sure if they accept tobaco.

Thanks, Ill check them out.

Anyone know about Moneybookers? They are based in England and appear to be a serious, active company yet they are not a CC gateway. I found at least one cigar web site where they are the gateway.

CORRECTION: my bad. On taking a second look, they are a CC gateway. Sniveling excuse: their logo is small and subtle. May say much about them.

Question still stands - anyone, especially in USA, have experience using them as a gateway?