Mastercard on Monday replied to a letter from the National Association of Convenience Stores (NACS) and several convenience associations regarding fines imposed on retailers for selling certain vape and electronic nicotine delivery systems (ENDS) products.
Mastercard’s letter, posted on the NACS website, said: “Mastercard’s compliance programs are designed to ensure adherence to applicable laws and our network standards. It is with that in mind—and in light of additional information being provided to Mastercard regarding the acquirers’ specific merchant customers—we have decided to temporarily pause any assessments to provide customers additional time to execute their remediation plans and ensure compliance.”
The National Association of Tobacco Outlets (NATO); Energy Marketers of America (EMA); and the Convenience Distribution Association (CDA) also signed the letters.
While the letters offered support for the stoppage of sales of illicit e-cigarette products, the associations noted that Global Payments and Mastercard’s approaches do not align with the Food and Drug Administration’s updated enforcement priorities. Global Payments and Mastercard had sent warnings to retailers asking them to remove products that aren't included on the list of 45 ENDS products authorized for sales by the FDA, or face fines, the letters said.
Margaret Mannion, NACS director of government relations, said, “We’re encouraged that Mastercard seems to be reevaluating their approach and temporarily pausing assessments in light of recent regulatory guidance from the FDA.”
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