Payment networks and fuel retailers alert merchants to fines and contract risks amid a multi-state enforcement push against illicit vape transactions.
Payment processor Fiserv and fuel retailers including BP have notified U.S. store owners to stop selling illegal vapes or face penalties. The warnings follow a coordinated crackdown by state and city authorities targeting a $9 billion annual market in illicit vape sales, according to estimates.
The enforcement effort, backed by attorneys general from California, Illinois, and Arizona, has already led to a ban on vape sales by Shopify. Mastercard has also threatened to investigate merchants facilitating illegal transactions on its network, prompting retailers like Marathon Petroleum and Valero to issue similar notices.
BP’s notice to gas station operators cited Mastercard’s compliance violation alerts for processing illegal vape sales, calling such transactions a breach of store agreements. The move signals escalating pressure on payment networks and retailers to curb illicit sales.