New York Attorney General Letitia James is calling on major credit card companies and payment processors to play a more aggressive role in stopping illegal vape sales, arguing that financial networks are enabling widespread access to prohibited products — especially among young people.
James joined a bipartisan coalition of 24 attorneys general and the City of New York in sending letters to companies including Visa, Mastercard, American Express, PayPal, and others, urging them to block transactions tied to unlawful e-cigarette sales.
The coalition says most vaping products currently being sold in the United States are illegal under federal law, which requires authorization from the Food and Drug Administration before they can be marketed. To date, only a limited number of tobacco- and menthol-flavored products have received approval, leaving the vast majority of flavored vape products on the market unauthorized.
Officials also pointed to widespread violations of the federal Prevent All Cigarette Trafficking Act, which requires online sellers to verify age, register with authorities, and comply with state and local laws. According to the coalition, many online retailers fail to meet even basic safeguards, allowing products to be shipped directly to consumers — often using mainstream payment platforms.
James said payment processors have a direct role in the problem.
“Right now, vape sellers are using mainstream payment systems to sell products that shouldn’t be on the market in the first place to kids,” she said. “If you are helping process the payment, then you are part of the pipeline.”
While states have pursued enforcement actions against illegal sellers, including lawsuits and referrals to federal authorities, the coalition argues those efforts alone are not enough. Instead, they are pushing for collaboration with the private sector to cut off the financial infrastructure supporting these transactions.
The group is requesting meetings with payment companies to discuss steps such as banning merchants that violate vaping laws from using their networks.
James has previously taken action against vape distributors and retailers, including lawsuits targeting companies accused of fueling youth nicotine addiction and enforcement efforts against shops selling to minors.
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