US AG Urge Payment Companies to Block Illegal Vape Sales

A coalition of 25 state attorneys general and the City of New York has officially called on nine major credit card and payment processing companies to immediately block transactions for illegal vaping products. This coordinated effort aims to sever the financial lifelines of unauthorized e-cigarette retailers bypassing federal laws.

Arizona Attorney General Kris Mayes emphasized that payment networks are not passive bystanders, but rather the “financial backbone” enabling unauthorized sales to minors. New York Attorney General Letitia James echoed this sentiment, stating that any company processing these payments is actively participating in the illicit pipeline.

The legal framework driving this crackdown centers on U.S. Food and Drug Administration (FDA) regulations. Currently, the FDA has authorized only 41 e-cigarette products for domestic sale, none of which feature flavors beyond tobacco or menthol. All unapproved products are federally classified as “adulterated” and are illegal to sell or ship across state lines.

Despite existing regulations like the Prevent All Cigarette Trafficking Act—which requires online sellers to verify age and register with authorities—officials note that most online retailers fail to comply. State-level lawsuits and federal noncompliant lists have proven insufficient without the cooperation of the financial sector.

To close this enforcement gap, the coalition sent letters requesting collaborative meetings with the following financial entities:

• Credit Card Networks: American Express, Capital One, Citigroup, Mastercard, and Visa.
• Digital Processors: PayPal, Stripe, Sezzle, and Block (operator of Square, Cash App, and Afterpay).

The coalition, led by officials from New York, Pennsylvania, and California, hopes to replicate past successes where cooperation between government and private financial companies significantly reduced illegal tobacco sales.

• News reference:
  NYS AG urging credit card companies to crack down on illegal vape sales
  Arizona AG urges payment companies to block illegal vape sales
  

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Matthew Ma

Marketing at Ecigator

With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.

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