Mastercard temporarily pauses assessments for vape and ENDS products
CHS Payment Solutions previously shared information about potential significant penalties for retailers selling unauthorized e-cigarettes, vapes and other electronic nicotine delivery systems (ENDS). Federal law requires certain e-cigarette products to receive U.S. Food and Drug Administration (FDA) authorization before they can be legally marketed or sold.
Mastercard has provided an update regarding its compliance program for vape and ENDS products.
What’s changing
Mastercard has temporarily paused assessments related to merchants selling unauthorized or non-compliant vaping and ENDS products.
Mastercard also clarified that it supports lawful purchases on its network. Retailers may continue accepting Mastercard for lawful vaping and ENDS purchases. Mastercard’s standards apply to products that do not have the required authorization for sale in the United States or that violate applicable state laws.
What this means for retailers
This temporary pause is positive news for retailers. It provides additional time to review product offerings, address potential compliance gaps and maintain appropriate controls.
However, this is not a permanent change. Retailers are still responsible for ensuring products sold in their locations comply with applicable federal, state and local requirements.
Action required
Retailers should:
- Review all e-cigarette, vape and ENDS products sold in-store.
- Confirm products meet FDA authorization requirements.
- Remove any unauthorized or non-compliant products from sale.
- Maintain controls to prevent the sale of restricted or illegal products.
- Continue monitoring future updates from CHS Payment Solutions.
What isn’t changing
Federal, state and local requirements for tobacco and ENDS product sales remain in effect. Penalties for selling unauthorized products can be significant, including fines of up to $450,000 per location, per enforcement period.
If you have questions, please contact pssupport@chsinc.com.
FDA resource links:
- FDA ENDS List: E-Cigarettes Authorized by the FDA
- FDA Advisory Page: Enforcement Actions Against Industry for Unauthorized Tobacco Products
- FDA Searchable Database: Tobacco Products
This information is provided for general informational purposes only and is not legal advice. Retailers should consult their own legal or compliance advisors regarding their specific obligations.
