Arizona AG Leads Bipartisan Push to Block Credit Card Payments for Illegal Vapes

In a move to curb the surge of unauthorized vaping products flooding the market, Arizona Attorney General Kris Mayes has spearheaded a bipartisan coalition urging major credit card companies and payment processors to cut off financial lifelines to illegal e-cigarette sales. The effort targets nine financial giants—including Visa, Mastercard, PayPal, and Block (parent company of Square and Cash App)—demanding they halt transactions tied to unapproved vaping products, particularly those marketed to minors.

The Financial Backbone of Illegal Vape Sales

Mayes, joined by 24 other state attorneys general and the City of New York, sent letters to the leadership of American Express, Capital One, Citigroup, Mastercard, Visa, PayPal, Stripe, Sezzle, and Block on April 28, 2026. The coalition argues that payment networks are not merely passive facilitators but active enablers of illegal sales, providing the infrastructure that allows unauthorized vaping products to reach consumers—often underage users.

“These payment networks are not passive bystanders—they are the financial backbone enabling sales of illegal vapes to minors. Credit card companies and payment processors must cut off the money flow to bad actors and retain dangerous, unauthorized products out of Arizona communities.”

Arizona Attorney General Kris Mayes

The letters emphasize that federal law requires all e-cigarette products to receive pre-market authorization from the U.S. Food and Drug Administration (FDA) before they can be legally sold. To date, the FDA has approved only 41 e-cigarette products, all limited to tobacco or menthol flavors. Any product sold without this authorization is classified as “adulterated” under federal law and cannot be legally marketed or shipped across state lines.

Why the FDA’s Authorization Gap Matters

The FDA’s stringent approval process is designed to evaluate the public health impact of vaping products, particularly their appeal to young users. Flavored e-cigarettes—such as fruit, candy, or dessert varieties—have been a major point of contention, with critics arguing they serve as a gateway to nicotine addiction for teens. Despite this, the vast majority of vaping products currently on the market lack FDA authorization, making their sale illegal under federal law.

The coalition’s letters highlight that online sellers frequently bypass age verification requirements mandated by the Prevent All Cigarette Trafficking (PACT) Act. This law requires online vape retailers to register with authorities, verify customer ages, and comply with all applicable sales regulations. However, investigations reveal that most online sellers fail to meet these basic safeguards, allowing minors to purchase illegal products with ease.

The Role of Payment Processors in Enforcement

While state and federal agencies have taken legal action against illegal vape sellers—including lawsuits and referrals to the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF)—enforcement efforts have struggled to keep pace with the rapid growth of online sales. The coalition argues that payment processors hold a unique position to disrupt this illicit trade by refusing to process transactions tied to unauthorized products.

Key steps the coalition is urging payment companies to adopt include:

• Transaction Monitoring: Implement systems to flag and block payments linked to known illegal vape sellers.
• Merchant Vetting: Strengthen due diligence processes to identify and terminate accounts associated with unauthorized e-cigarette sales.
• Collaboration with Authorities: Share data with law enforcement to aid in investigations and prosecutions.
• Consumer Education: Provide clear warnings to customers attempting to purchase unapproved vaping products.

Industry Response and Broader Implications

The coalition’s push comes amid growing scrutiny of the vaping industry’s role in youth nicotine addiction. While some payment processors have taken steps to restrict transactions tied to tobacco and nicotine products, enforcement has been inconsistent. For example, Visa and Mastercard have previously updated their policies to prohibit the sale of unapproved e-cigarettes, but loopholes remain, particularly for smaller merchants using third-party payment platforms.

Block, which operates Cash App and Afterpay, has faced criticism for its role in facilitating transactions for high-risk merchants, including those selling unauthorized vaping products. The company has not publicly responded to the coalition’s demands as of this writing.

For credit card companies, the stakes are high. Failing to act could expose them to legal liability, reputational damage, and regulatory backlash. However, implementing robust transaction monitoring systems requires significant investment in technology and compliance infrastructure, which some firms may be reluctant to prioritize.

What’s Next for Consumers and Businesses?

For consumers, the coalition’s efforts could lead to greater difficulty purchasing unauthorized vaping products online. However, experts warn that determined buyers may turn to alternative payment methods, such as cryptocurrency or peer-to-peer platforms, to circumvent restrictions.

For businesses, particularly modest vape shops and online retailers, the crackdown could force compliance with FDA regulations or risk losing access to payment processing services. Some industry advocates argue that the FDA’s slow approval process has created an unlevel playing field, allowing unauthorized products to dominate the market while compliant businesses struggle to navigate regulatory hurdles.

The coalition’s letters do not carry legal weight but serve as a formal request for cooperation. If payment processors fail to act, states may pursue legislative or legal measures to mandate stricter controls. In the meantime, the FDA continues to ramp up enforcement, issuing warning letters to retailers and manufacturers selling unauthorized products.

Key Takeaways

• Bipartisan Effort: Arizona AG Kris Mayes and 24 other attorneys general are pressuring credit card companies to block payments for illegal vaping products.
• FDA Authorization Gap: Only 41 e-cigarette products have received FDA approval, all limited to tobacco or menthol flavors. The vast majority of products on the market are illegal.
• Payment Processors’ Role: Companies like Visa, Mastercard, and PayPal are being asked to monitor and block transactions tied to unauthorized vape sales.
• Youth Protection: The coalition’s primary concern is preventing minors from accessing illegal vaping products, which often bypass age verification requirements.
• Industry Challenges: Payment processors face technical and financial hurdles in implementing effective transaction monitoring systems.

FAQ

Why are credit card companies being targeted for illegal vape sales?

Credit card companies and payment processors provide the financial infrastructure that enables online sales of illegal vaping products. By cutting off access to these payment networks, the coalition aims to disrupt the supply chain and reduce the availability of unauthorized e-cigarettes, particularly to minors.

What makes a vaping product illegal?

Under federal law, all e-cigarette products must receive pre-market authorization from the FDA before they can be legally sold. Products that lack this authorization are classified as “adulterated” and cannot be marketed or shipped across state lines. As of April 2026, only 41 products have received FDA approval, none of which are flavored beyond tobacco or menthol.

What is the PACT Act, and how does it apply to online vape sales?

The Prevent All Cigarette Trafficking (PACT) Act imposes strict requirements on online sellers of vaping products, including age verification, registration with authorities, and compliance with all applicable sales laws. However, investigations show that most online retailers fail to meet these requirements, allowing minors to purchase illegal products.

What can consumers do to avoid purchasing illegal vaping products?

Consumers should verify that any e-cigarette product they purchase has received FDA authorization. The FDA maintains a list of approved products on its website. Buyers should be wary of online sellers that do not require age verification or offer flavored products not listed as FDA-approved.

What happens if payment processors ignore the coalition’s demands?

While the coalition’s letters are not legally binding, they signal a growing willingness among states to take action against payment processors that facilitate illegal sales. If companies fail to cooperate, states may pursue legislative or legal measures to mandate stricter controls, potentially leading to fines, lawsuits, or regulatory sanctions.

Conclusion

The bipartisan push led by Arizona Attorney General Kris Mayes underscores the critical role that financial institutions play in combating the illegal vaping epidemic. By targeting the payment networks that enable unauthorized sales, the coalition aims to close a major loophole in enforcement efforts and protect young people from the dangers of unregulated nicotine products. For payment processors, the choice is clear: take proactive steps to block illegal transactions or risk becoming complicit in a public health crisis. As the FDA continues to ramp up its oversight, the pressure on both sellers and their financial enablers is only set to intensify.