The fundamental problem smoke shops encounter with traditional payment processing is that their business model conflicts with how processors classify risk. A processor evaluates risk by product category, and a smoke shop's inventory crosses multiple high-risk categories simultaneously. The merchant does not get the benefit of a single category classification. The merchant absorbs the accumulated restriction of every category present in their store. Each additional high-risk product line in the inventory raises the processor's overall risk assessment of the account.
27 Blockchain's smoke shop payment processing eliminates the category-based risk accumulation by routing transactions through blockchain networks where product classification does not exist as a payment processing variable. The merchant's crypto checkout handles transactions for every product the store sells through the same payment infrastructure. The compounded risk problem that defines smoke shop processing in the traditional system does not transfer to crypto transactions processed through 27 Blockchain.
