Retail Groups Urge Mastercard to Revise Vape Enforcement

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.

Sources:

• Tobacco Reporter – Retail Groups Urge Processors to Revise Vape Enforcement Policies
• CSP Daily News
• FDA CTP Newsroom

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