Why are Fiserv, BP, and other service station operators warning U.S. store owners about selling illegal vapes?

Fiserv, BP, Marathon Petroleum, Valero, and CardConnect are warning U.S. store owners because payment networks like Mastercard have begun issuing compliance violation notices—and threatening mid-six-figure fines or termination of card processing services—for merchants processing transactions involving illegal electronic nicotine delivery systems (ENDS), which lack authorization from the U.S. Food and Drug Administration (FDA); the FDA has authorized only 45 vaping products for legal sale, yet unauthorised vapes are widely sold nationwide in convenience stores, bodegas, and online.

What enforcement actions are state and city authorities taking against illegal vape sales, and who is involved?

A coalition of state and city law enforcement officials—including attorneys general from California, Illinois, and Arizona, as well as authorities from New York City, the District of Columbia, and Puerto Rico—is pressuring shippers, e-commerce platforms, and payment networks to curb the $9 billion+ annual illegal vape market; this effort has already led to Shopify banning vapes and Mastercard warning partners it would investigate and penalize those enabling illegal vape transactions.

Fiserv, Service Station Operators Including BP Warn U.S. Stores on Illegal Vapes

Jul 3, 2026

Payment processors and fuel retailers warn U.S. merchants against selling unauthorized vape products, facing potential fines and service revocation amidst FDA regulatory crackdowns.

reuters

2026-07-03

Fiserv, Service Station Operators Including BP Warn U.S. Stores on Illegal Vapes

Fiserv, Service Station Operators Including BP Warn U.S. Stores on Illegal Vapes

FAQ