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I am helping to set up an online cigar web site. However, it has become a real pain to take payments online since tobacco is considered a "high-risk" item and nobody will provide a merchant account to process the payments. It looks like there are companies that specialize in high-risk merchant accounts. I was wondering if anybody could recommend a high-risk merchant account and payment processing provider?

GregH
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try alert pay, moneybookers, bluepay, or digital gold currency

gijoemike
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http://www.usfsg.com/ might be able to help you. I am not affiliated with them but I know they are serious when it comes to offshore and high rish merchant accounts.

Gaia
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You can also use TrustWho to vet the authenticity of buyers. They reduce fraud significantly.