NACS Asks for Clarification on ENDS Product Fines
NACS sent letters raising concern that Mastercard and Global Payment’s fines do not match FDA’s federal enforcement standards for illicit nicotine products.
Jul 23, 2026 | 2 min read
NACS, along with cosigners this week, sent letters to Mastercard and Global Payments regarding violations and fines the networks have been issuing to retailers selling any electronic nicotine delivery system (ENDS) product outside of the FDA’s approved list of 45 products, despite a change in FDA guidance in May.
NACS highlighted that while premarket authorization for ENDS is required under the Federal Food, Drug, and Cosmetic Act (FFDCA), the FDA does not strictly enforce such a requirement, and instead opts to exercise its enforcement discretion as to certain products. Accordingly, it is not correct that all “unapproved ENDS items” are currently subject to enforcement action by FDA.
“NACS has long sought to dismantle the rampant market for illicit products, but the enforcement standard the card networks are applying isn’t the one FDA is now using," said Margaret Mannion, NACS director of government relations. “We’re urging them to update their policies to match current federal guidance so responsible retailers aren’t subject to multiple, conflicting standards.”
Earlier this month, payments platform Fiserv and c-store operators, including major oil brands like BP, warned their U.S. partners and store owners that they could face heavy fines by credit card networks for selling any ENDS item not expressly approved by FDA, Reuters reported.
Marathon Petroleum and Valero issued similar notices in June warning that Mastercard or similar firms could issue mid-six-figure fines for a single violation or revoke their card processing services.
According to the report, a coalition of state attorneys general in the U.S. is pressuring shippers, e-commerce platforms and payment networks to clamp down on the illegal vapes market—worth $9 billion or more in annual sales, according to some estimates.
The AGs stated that “combating illegal e-cigarette sales requires proactive efforts between government entities and credit card and payment processing companies to stop these unlawful transactions.”
The FDA has granted only 45 vaping products authorization to market legally.
