Running a tobacco shop can feel like walking a tightrope.
You’re dealing with compliance and payment processing challenges most retailers never face. Since payment processors classify you as high-risk, it can be more difficult (and expensive) to accept credit cards in your store. And that’s just the tip of the iceberg.
Tobacco store owners also need to worry about FDA regulations, state tobacco laws, local licensing requirements, and age verification — the stakes are real. Compliance violations can result in costly fines that eat into your profits.
The good news is that the right point of sale (POS) system can make these challenges manageable and help you run a profitable store. This guide reveals the best tobacco POS providers that offer all the high-risk payment processing and compliance features you need to succeed.
Let’s jump in.
Why Tobacco Retailers Need Specialized POS Systems for High-Risk Processing and Compliance
Tobacco stores face unique challenges, which means they also require unique solutions. Generic POS tools might work fine for the retailer down the street, but these systems don’t have the features tobacco retailers need to maintain compliance and run a profitable business.
Most payment processors classify tobacco as high-risk, which means you're dealing with higher fees, stricter requirements, and the constant threat of sudden merchant account terminations. If your POS system doesn't have integrated high-risk processing, you could wake up one day to find your ability to accept cards has been shut off without warning.
Then there's compliance. You're juggling FDA regulations, state and local tobacco licensing requirements, age verification mandates under the federal PACT Act, and manufacturer scan data reporting. But these are just the beginning.
The right tobacco POS system should include:
- Integrated high-risk payment processing
- Built-in age verification with ID scanning
- Compliance reporting capabilities
- Case-break inventory management
- Customer purchase history and loyalty programs
- Excise tax automation
- Multilocation synchronization for growing businesses
With these features in mind, let’s take a look at the six best tobacco POS providers on the market today.
1. Cigars POS
Best for: Independent tobacco shops, cigar lounges, and multilocation tobacco retailers
Cigars POS is the only point of sale system built by tobacco retailers, for tobacco retailers. Cigars POS designed its solution to help manage the specific challenges of the tobacco retail industry, including complex inventory management and strict regulations.
Key features:
- Fully integrated high-risk payment processing
- Automatic age verification
- Case-break tracking
- Custom label printing
- Built-in compliance reporting
- Multilocation inventory management
- Mobile POS capabilities
This system is designed for tobacco retailers who prioritize compliance, inventory management, and customer experience. The solution is fully customizable, and you can use their online pricing tool to build and price the ideal package for your store, ensuring you only pay for the hardware you need.
2. FTx POS
Best for: Retailers who operate in multiple high-risk industries
FTx POS serves various high-risk sectors, including tobacco, liquor, and convenience stores, making this a strong option for combination liquor-and-tobacco stores. The system offers solid features for tobacco retailers who need reliable transaction processing and basic compliance tools.
Key features:
- High-risk payment processing capabilities
- Age verification integration
- Scan data reporting for manufacturer programs
- Customizable interface options
While FTx POS handles high-risk processing well, it's important to keep in mind that this tool is a generic platform with a solution adapted for tobacco sales. You may find yourself working around the system's limitations rather than having tools designed specifically for tobacco retail workflows.
Related Read: How Much Does It Cost To Open a Tobacco Shop? 8 Key Factors
3. KORONA POS
Best for: Small vape shops
KORONA POS offers point of sale solutions for various industries, including event venues, quick-service restaurants, and vape shops. The system is not specifically designed for tobacco shops, but it offers solid inventory management and marketing tools that can work for a tobacco retailer if they’re willing to customize their setup.
Key features:
- Age verification capabilities
- Real-time inventory tracking
- Marketing tools, including email and SMS campaigns
- Role-based cashier permissions
KORONA POS isn't tobacco-specific, which means you'll likely need to purchase add-ons or upgrade to higher pricing tiers to unlock the compliance features you need.
4. Lightspeed Retail
Best for: Enterprise-level vape store chains
Lightspeed Retail is an enterprise-level platform designed for retailers across multiple industries. It offers advanced reporting capabilities and is best known for its abilities with multichannel sales. If you’re selling tobacco online and in store at an enterprise level, Lightspeed might be the solution for you.
Key features:
- Robust reporting and analytics
- Multichannel sales capabilities
- Multilocation management tools
- Compliance tools available through integrations
Lightspeed comes with a significantly higher price point than most options on this list. For tobacco retailers who don't need omnichannel or multilocation features, you'll be paying for features you don't use.
Related Read: 5 Ways To Build Your Small Business' Online Presence
5. National Retail Solutions (NRS)
Best for: Budget-conscious tobacco startups
NRS doesn’t have all the features and functionality of some of the other options on this list, but it can be an affordable entry point for small independent retailers. With hardware packages starting at $599 and basic software plans at a low price point, it's designed for businesses watching every dollar.
Key features:
- Basic age verification capabilities
- Simple, user-friendly interface
- Mobile app
- Local coupon club
The low base price can be enticing, but if you want to get NRS to run as smoothly as some of the other options on this list, you’ll need to invest in add-on features — and those add up quickly. NRS also has customer-facing ads on your POS displays and limited support hours.
6. Square POS
Best for: Small tobacco operations with simple transaction needs
Square POS is one of the most recognizable names in the payment processing game. Their plug-and-play credit card readers and low price point make them popular with solopreneurs and microbusinesses looking for an easy way to accept credit cards.
Key features:
- User-friendly interface
- Mobile POS capabilities
- Affordable entry point with straightforward pricing
- Product categorization and basic inventory tools
Square wasn't built for tobacco retail. You won't find key features like case-break tracking, cigar label printing, or tobacco-specific compliance reporting. If you need a simple tool to get started, Square might be a good fit — but be aware that you’ll likely need to purchase a more robust solution designed for tobacco sales in the future.
How To Choose the Best Tobacco POS Provider for Your Business
These six solutions all offer some features and tools that can work well for tobacco retailers. If you’re not sure how to find the best tobacco POS provider for your store, try this simple five-step process.
Step 1: Assess Your High-Risk Processing Situation
Start by taking an honest look at your current merchant account status. What products are you selling? Traditional tobacco products, CBD, delta-8, or kratom? Your product mix directly impacts which providers can actually support you.
Step 2: Map Out Your Compliance Requirements
Different states have different regulations. If you participate in manufacturer scan data programs from Altria or RJ Reynolds, you need a system that generates those reports automatically. Don't overlook your audit trail needs. When inspectors show up, you need documentation ready, so choose a solution with the reporting features to get that critical documentation.
Step 3: Evaluate Your Inventory Complexity
Next, evaluate your store’s inventory and product mix. Count your SKUs and check out your individual store’s needs. You might need serialized tracking or multilocation inventory management. Take a holistic view of your inventory and select a solution that has the features to help you manage it effectively.
Step 4: Calculate the Total Cost of Ownership
Hidden fees and required add-ons can quickly turn an "affordable" solution into an expensive one. Factor in whether you're getting 24/7 support or limited hours, and check if you'll be locked into a long-term contract or have the flexibility to make a switch if needed.
Step 5: Ask the Critical Question
Is this system built for tobacco or just adapted for it? Purpose-built solutions save you time and money on workarounds and give you a support team that actually understands your business.
Choosing the right POS system doesn't have to be complicated. By following these five steps, you'll quickly identify which providers can truly support your tobacco retail business and which ones will leave you struggling with workarounds and compliance headaches.
The Bottom Line
You didn't get into the tobacco business to fight with your POS system. Choosing the wrong provider costs you time, money, and stress — instead, invest in a solution with features, reporting capabilities, and customer support tailored to your industry.
Cigars POS is the only solution built by tobacco retailers, for tobacco retailers. This all-in-one tool has the integrated high-risk processing, compliance features, age verification tools, and inventory management solutions you need.
Schedule a free demo of Cigars POS today to see how our tobacco-specific point of sale solution can be a game-changer for your store.
by Cort Ouzts
