MASTERCARD IS NOT THE MASTRMIND HERE

MASTERCARD IS NOT THE MASTRMIND HERE

With the anti vaping movement gaining momentum, the FDA is literally leaving no stone unturned to make sure the vaping community bears the brunt of the recent developments. They use every bit of evidence, data and reports to make sure the vaping culture is washed out eventually. Along with some eminent spokespersons they now have the knack to disregard all the claims made by anyone who tries to promote the benefits of vaping over smoking of regular combustible cigarettes.

With much speculation on matter lately, the FDA has gone one step further and has levied regulations on sale and purchase of vaping devices from vape shops which is not good news for those in the business and even buyers in the vaping community. The institution has put a minimum age limit for buyers and master card being a credit card issuing giant player, will be adding a lot of new terms and conditions for credit card processors and their customers, which is sure to make it very difficult for vape retailers to turn a profit when accepting a payment using a MasterCard credit card.

The latest regulation has conveniently put vapors and vaping liquids in the tobacco category which is the main cause for all these new changes, which makes online sale of tobacco part of the high risk category by MasterCard section of BRAM or Business Risk Assessment and Mitigation, compliance program.

So it is before January 15 that buyers need to meet the compliance rules in order to make a purchase of products in the tobacco category online or on the phone.

Some of the compliances include age verification of each customer, must meet all the new rules when it comes to labeling, marketing, advertising, promotion and manufacturing, make sure that all federal and state requirements are followed and also verified by a letter from an attorney, register with MasterCard through their credit card processor by Jan. 15 that required a payment of $500, must have a display of a nicotine health warning on their website, disclose clearly all billing terms and conditions on their website and also only deliver the product to an adult along with the signature of the authorized adult.

Although most of the regulations seem absolutely fine this time they come at a cost which may mean a hike in product pricing which will have an adverse effect on the purchasing capacity at consumer level which in turn will bring down the profits of those in on the product selling end.

It is the small businesses that are going to be affected the most with their incapacity to cater to separate shipping policies for each different payment method. While adult signatures might become a part of the SOP for the biggies in the vaping products and tobacco selling business, to ensure minimal effect on business revenue, the smaller business holders are bound to suffer the consequences this particular policy.

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