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MasterCard steps in to regulate the E-liquid industry. Shipping prices expected to triple.

MasterCard credit cardMasterCard, in response to FDA regulations regarding tobacco products (which, unjustifiably, includes e-liquids and vaping equipment such as vape pens and accessories), in enforcing a series of strict and costly shipping regulations that affect the ENTIRE INDUSTRY!

The shipping regulations include the following:

  • Electronic age verification (no longer in house, paid software now required)
  • Adult (21 and older) signature verification upon delivery…which automatically incurs about a $6 charge per order upon the shipper (rates vary slightly)
  • Shuts down interstate commerce to states such as Utah that prohibit vape sales outside of the state (Indiana customers, your fate is yet to be decided)

How this affects you?

  • This forces ALL vaping businesses (sellers/manufacturers of e-liquids, vape pens, accessories, etc.) to increase shipping costs, get rid of free shipping options, raise merchandise cost, or some combination of all the latter.
  • This alienates legal users and customers between ages 18-20 who cannot sign for vaping packages, not being 21 or older with ID to verify.

How this affects us?

  • As a manufacturer of e-liquid, we have to buy into an annual registration through MasterCard that costs $500 a year currently. If we fail to “buy in” to this registration, we will no longer be recognized as a business and will be forced to close our doors, as will every other company involved in the vaping industry.
  • Unfortunately, we don’t have the option to simply refuse MasterCard’s business. Again, to stay compliant as a business, we are forced to use MasterCard and register with them.
  • We have to have a Legal Compliance Verification from an attorney, state agency, or the FDA to be submitted, in writing, to MasterCard proving we are a compliant business meeting regulations to continue operation. No need to say this is going to financially strain many of us.
  • Less importantly, this will staunch our ability to provide “almost free” giveaways at a regular rate. Our team is currently discussing a number of plans for continuing providing the vaping community with fun giveaways under the new shipping regulations.

How you can help:

Go to https://www.change.org/p/mastercard-reverse-mastercard-s-anti-vape-policies?recruiter=68756697&utm_source=share_petition&utm_medium=copylink and sign this petition to halt MasterCard from oppressing our industry! Tell your friends, forward this link, and let’s make our voices heard.

Our promise to the customer:

  • We will strive to keep cost of goods at an affordable level once the regulations take effect (January 15, 2017).
  • We will strive to keep shipping affordable for the customer. We are currently exploring every avenue to maintain affordable shipping and have been in communication with all major shipping companies for deals and special rates to aid in this pursuit.
  • We promise to keep our business practices transparent and explain any changes we make. Many businesses will be afraid to discuss these new regulations and will heavily push the incurred costs onto the customer. That’s not fair to you.

In Conclusion:

We do not enjoy sending you this letter. We try to keep positive communication with you. Unfortunately, this is something you should be aware of as you shop for vaping supplies in the future…not just with us, but any company you may patronize. We are sincerely sorry for any future affect this has upon you. We value each and every one of you and want to retain your business and provide you with great, creative products.

On a lighter note, we have decided to continue the current coupon-free sales. Most lines at omvapors.com are 50-70% off. Keep posted to our threads on Reddit, Vaping Underground, ECF, and JuiceDB for unique offers and giveaways.

Breathe Easy,

Om Vapors

BE AWARE!

MasterCard, in response to FDA regulations regarding tobacco products (which, unjustifiably, includes e-liquids and vaping equipment such as vape pens and accessories), is enforcing a series of strict and costly shipping regulations that affect the ENTIRE INDUSTRY!

The shipping regulations include the following:

  • Electronic age verification (no longer in-house, paid software now required)
  • Adult (21 and older) signature verification upon delivery…which automatically incurs about a $6 charge per order upon the shipper (rates vary slightly)
  • Shuts down interstate commerce to states such as Utah that prohibit vape sales outside of the state (Indiana customers, your fate is yet to be decided)

How this affects you?

  • This forces ALL vaping businesses (sellers/manufacturers of e-liquids, vape pens, accessories, etc.) to increase shipping costs, get rid of free shipping options, raise merchandise cost, or some combination of all the latter.
  • This alienates legal users and customers between ages 18-20 who cannot sign for vaping packages, not being 21 or older with ID to verify.

How this affects us?

  • As a manufacturer of e-liquid, we have to buy into an annual registration through MasterCard that costs $500 a year currently. If we fail to “buy in” to this registration, we will no longer be recognized as a business and will be forced to close our doors, as will every other company involved in the vaping industry.
  • Unfortunately, we don’t have the option to simply refuse MasterCard’s business. Again, to stay compliant as a business, we are forced to use MasterCard and register with them.
  • We have to have a Legal Compliance Verification from an attorney, state agency, or the FDA to be submitted, in writing, to MasterCard proving we are a compliant business meeting regulations to continue operation. No need to say this is going to financially strain many of us.
  • Less importantly, this will staunch our ability to provide “almost free” giveaways at a regular rate. Our team is currently discussing a number of plans for continuing providing the vaping community with fun giveaways under the new shipping regulations.

How you can help:

Go to https://www.change.org/p/mastercard-reverse-mastercard-s-anti-vape-policies?recruiter=68756697&utm_source=share_petition&utm_medium=copylink and sign this petition to halt MasterCard from oppressing our industry! Tell your friends, forward this link, and let’s make our voices heard.

Our promise to the customer:

  • We will strive to keep cost of goods at an affordable level once the regulations take effect (January 15, 2017).
  • We will strive to keep shipping affordable for the customer. We are currently exploring every avenue to maintain affordable shipping and have been in communication with all major shipping companies for deals and special rates to aid in this pursuit.
  • We promise to keep our business practices transparent and explain any changes we make. Many businesses will be afraid to discuss these new regulations and will heavily push the incurred costs onto the customer. That’s not fair to you.

In Conclusion:

We do not enjoy sending you this letter. We try to keep positive communication with you. Unfortunately, this is something you should be aware of as you shop for vaping supplies in the future…not just with us, but any company you may patronize. We are sincerely sorry for any future affect this has upon you. We value each and every one of you and want to retain your business and provide you with great, creative products.

On a lighter note, we have decided to continue the current coupon-free sales. Most lines at omvapors.com are 50-70% off. Keep posted to our threads on Reddit, Vaping Underground, ECF, and JuiceDB for unique offers and giveaways.

Breathe Easy,

Om Vapors

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2 thoughts on “MasterCard steps in to regulate the E-liquid industry. Shipping prices expected to triple.

  1. Don’t understand. Is Mastercard running the credit acceptance scene now? How come you don’t have a choice whether to accept or not to accept Mastercard?

    Like

    1. Hi Hassan. Every processor that I have talked to has stated that they are unable to drop MasterCard because they have a contract with them. In regards to MasterCard, running the scene, MasterCard and Visa combined account for the Vast Majority of Credit cards issued worldwide.

      They are also a private business and to protect their brand image they can require us to comply in whatever way they see fit.

      If you are a Merchant that violates the terms of use of any card that you accept, the processor is fined for non-compliance and the merchant that breached the agreement is dropped.

      Like

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