Fiserv and service station operators, including BP, warn US stores about illegal vapes
Fiserv, a payments platform, and operators of service stations including BP have 'warned' their U.S. counterparts and store owners to not?deal with illegal vapes - or risk heavy fines. According to estimates, a coalition of state and city law enforcement officials in the U.S. are putting pressure on shippers, payment networks and e-commerce platforms to crack down on an illegal vape market worth up to $9 billion in sales annually. Shopify has banned vapes in recent weeks after a 'crackdown' that was backed by the attorneys general of states such as California, Illinois, and Arizona, and authorities from New York City, the District of Columbia, and Puerto Rico. Mastercard warned its partners it would investigate any illegal vape transactions made on their network.
Documents seen by us show that a stricter approach is being taken to illegal vape sale.
In an undated notice, BP informed its gas station operators that it had learned "MasterCard began issuing... compliance?"violation notices for merchants in the industry who processed sales transactions for illegal electronic Nicotine Delivery System products."
The notice that was seen by stated that the sale of illegal vapes is also a violation to a store agreement with BP.
Marathon Petroleum and?Valero, two gas station operators, issued similar warnings that Mastercard could impose fines of up to six figures for a single infraction or revoke the card processing service. The notice from?Valero was dated 17th June. CardConnect, Fiserv's subsidiary and payment technology provider, issued a notice to its partners that all vape sales had to comply with the relevant laws, or face "corrective actions".
CardConnect was to send a warning message to all merchants who use its services, telling them not sell vapes without authorization from the U.S. Food and Drug Administration.
Only 45 vaping products have been approved by the FDA to be sold legally. However, unauthorised brands are being sold online and in stores such as convenience stores and bodegas.
Fiserv, BP Marathon and Valero didn't immediately respond to comments. In the United States, Friday is a holiday.
(source: Reuters)
