If your business sells vape products or electronic cigarettes, staying up to date with industry regulations is more important than ever.

Recent enforcement actions have highlighted the serious financial risks associated with selling unauthorized vape products. According to a recent compliance advisory from Electronic Payments, Mastercard’s Business Risk Assessment and Mitigation (BRAM) program has significantly increased enforcement efforts against merchants selling unauthorized or non-FDA-approved vape products.

Why This Matters

Merchants found selling unauthorized vape or electronic cigarette products may face:

  • Significant financial penalties
  • Restrictions on their merchant account
  • Increased compliance reviews
  • Potential interruption in their ability to accept credit card payments

In one recent case, a merchant reportedly received a $100,000 fine for selling unauthorized vape products, demonstrating how costly non-compliance can become.

What Merchants Should Do

To help protect your business, we recommend taking the following steps:

  • Review your current vape and electronic cigarette inventory.
  • Verify that the products you sell are authorized for sale in the United States.
  • Remove any unauthorized products from your shelves.
  • If you’re unsure about a product’s status, contact your supplier or consult official FDA resources before continuing to sell it.

Being proactive today can help prevent costly penalties in the future.

Why Compliance Matters

Payment processors and card networks continue to strengthen compliance requirements for businesses operating in higher-risk industries, including vape retailers. Staying informed and regularly reviewing your inventory not only protects your merchant account but also demonstrates your commitment to operating a compliant business.

GBT Is Here to Help

At GBT, we’re committed to helping our merchants stay informed about important industry updates that may impact their business.

If you’re one of our merchants and have questions about payment processing compliance or how these requirements may affect your business, our team is here to assist you.

Disclaimer: This article is intended for informational purposes only and should not be considered legal or regulatory advice. Merchants are responsible for ensuring compliance with all applicable federal, state, and local laws and should consult official FDA guidance or qualified compliance professionals regarding specific products.