Retail trade associations have sent letters to Global Payments and Mastercard urging the companies to revise policies that penalize retailers for selling certain vaping products, arguing the enforcement standards exceed current FDA policy.
The National Association of Convenience Stores, joined by the National Association of Tobacco Outlets, Energy Marketers of America, and the Convenience Distribution Association, said in the letters that responsible retailers should not face penalties that go beyond the FDA’s updated enforcement priorities, according to CSP.
The FDA issued updated guidance in May granting enforcement discretion for certain products with pending premarket tobacco product applications. The retail groups argued that payment processors’ current enforcement standards do not reflect that update.
The request follows a coalition of state attorneys general urging major payment networks to take action against merchants selling unauthorized vaping products. That pressure led Shopify to remove vape products from its platform earlier this month.
The conflict highlights tension between regulatory enforcement and legitimate commerce in the vaping sector. Payment processors occupy a critical position between retailers and regulators, able to cut off financial infrastructure without judicial process.
The retail groups expressed support for removing illicit vaping products from the market but said the current enforcement approach harms compliant businesses. They called on Global Payments and Mastercard to align their policies with the FDA’s updated enforcement guidance.
The letters come amid broader regulatory turbulence. The FDA’s own staff were caught off guard by recent policy changes, and states including North Carolina have imposed new taxes and age verification mandates on vape retailers.
Meanwhile, regulators have increasingly turned to financial chokepoints to restrict unauthorized vaping product sales, bypassing traditional enforcement mechanisms.
What This Means for Vape Retailers: Retailers facing payment processor account closures or restrictions may see policy revisions if Global Payments and Mastercard respond to the trade groups’ request. Vape shop owners should document their FDA compliance status and retain PMTA documentation, as payment processors may request proof of regulatory standing. Consumers could see improved product availability at compliant retailers if enforcement policies are aligned with FDA guidance.
Sources:
- Tobacco Reporter – Retail Groups Urge Processors to Revise Vape Enforcement Policies
- CSP Daily News
- FDA CTP Newsroom
Keep Reading
- Shopify Tells Merchants to Remove Vape Products
- FDA’s New Vape Enforcement Policy
- How Regulators Are Choking Off Illegal Vapes
Kevin Li — Founder & Editor, VapeObservation.com Kevin reviews vape products hands-on, prioritizing real-world performance over manufacturer claims. His goal: honest, practical advice that helps everyday vapers make informed choices. Before launching VapeObservation, he was a longtime vaper frustrated by promotional content disguised as reviews. Every article on the site reflects his commitment to data-driven, reader-first testing.
