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NEW policy for purchases of tobacco with Mastercard

I suggest that everyone with a MC contact their banks to see if there is any info at the bank. I just checked with mine, and they have no info. Again, the letter that was read to me was received on Friday. This is not old news, although it was talked about a few years ago. They charged my card for this purchase and told me that they recommend I change to a VISA or AMEX by the 1st. I will heed their advise.
 
BlindedByScience said:
Looks like MasterCard is trying to cover their ass should a class action lawsuit to recover state tobacco taxes go down. More info here.

Goodbye, MasterCard. I'm canceling today and telling them why.

Regards - B.B.S.
Click to expand...


That's from 2005...no?

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Guyt...don't get your panties in a bunch.

Until we see the letter...this is just a conversation.
 
Buy now, because once all cards submit, the final price for a cigar will surely increase.

This sucks.
 
grateful1 said:
BlindedByScience said:
Looks like MasterCard is trying to cover their ass should a class action lawsuit to recover state tobacco taxes go down. More info here.

Goodbye, MasterCard. I'm canceling today and telling them why.

Regards - B.B.S.
Click to expand...


That's from 2005...no?

-----------------------


Guyt...don't get your panties in a bunch.

Until we see the letter...this is just a conversation.
Click to expand...
Gary - that is indeed from 2005 but it appears this is the reason behind the new rules going into place.

Israel and other online retailers telling me it's so seems reasonable confirmation.

BTW - My shorts are comfortably unbunched, thank you for asking. I'll leave the pantie wearing to our more "sensitive" members..... :laugh:

Regards - B.B.S.
 
BlindedByScience said:
Gary - that is indeed from 2005 but it appears this is the reason behind the new rules going into place.

Israel and other online retailers telling me it's so seems reasonable confirmation.

BTW - My shorts are comfortably unbunched, thank you for asking. I'll leave the pantie wearing to our more "sensitive" members..... :laugh:

Regards - B.B.S.
Click to expand...

LOL...as long as your comfy!


As far as the Master Card issue....is it across the board or just Merchant accounts?

Unitl we see the letter....this is just a discussion.

.....edit....

LINKY to CA thread. (you may have to login)

The just...this has been a MC policy since 2000...and it's for NON-Face To Face transactions.

So - the B&M can put the info in with swipe of the card.
 
You're right Gary. This is just a discussion. Since I don't have the letter, you can assume what you like. I won't assume they are lying, simply because I haven't seen the letter. I will take them at their word.
 
uptown_isy said:
You're right Gary. This is just a discussion. Since I don't have the letter, you can assume what you like. I won't assume they are lying, simply because I haven't seen the letter. I will take them at their word.
Click to expand...


An excerpt from the CA article....dated Dec 2008:

Dear Mr. xxxxxxxxx,

Recently you inquired if MasterCard prevents the purchase of tobacco products.

When a consumers purchase products over the internet or by telephone, these transactions are called Non-Face-To-Face transactions, essentially, the MasterCard is used while not physically present at the Merchant. The processing bank of the Merchant, sometimes called the Acquiring bank, must register with MasterCard that the Merchant has a written opinion from an independent, reputable, and qualified legal counsel stating that the Merchant's tobacco sales activity complies fully with all applicable laws as a safeguard especially against purchases by minors.

The Merchant you attempted to purchase tobacco products has not fully satisfied these requirements and we are sorry for any inconvenience this has caused you.

Regards,

Dan Bxxxxxxxxx
MasterCard Worldwide


---------------

The point of my comment was so that we would NOT assume anything.

I do not think anyone lied or are trying to mis-lead. I do know that with out seeing what was written...then it becomes a Telephone Game!
 
How can it be that you can view hard core pornographic material (that is illegal in most states) and purchase items to be used towards building WMD's with a Mastercard, but you can't by a friggen cigar. I swear, if this actually goes through, as a merchant I will discontinue my business with Mastercard.
 
As indicated, this is not a new story. Mastercard (and Visa and AMEX and Discover) have agreements with their merchants that the merchants will keep records of all out-of-state tobacco purchases the merchants don't collect taxes on. If any merchants violate this agreement, any of the credit card companies can shut off their service.

The reason MasterCard is usually singled out is because the states check you tax returns to make sure you are paying taxes on tobacco you purchase out of state. If you don't, and the state reports you to MC, then MC will put a block on your account so you can't purchase tobacco online.

Hope that clears things up.
 
That is completely foolish and doesn't make any sense. I could understand if you were buying lottery tickets or drugs, but tobacco??????? come on...
 
I've been building a war chest with all of these looming tobacco laws, and it looks like I might not be too far off the mark. It seems to be getting harder and harder for us.
I've also done quite a few Money Order purchases to help out a few brothers/B&M owners here, who were giving me a great deal save the 3% fees.
Maybe that's the new order I may follow to prevent any possible future headaches Uncle Sam may have in store for me.
 
Seems like this is more of a "compliance with state laws" issue rather than a stand against tobacco by Mastercard. The states have been trying to recover the revenue from state taxes when products are shipped across state lines for years. What perplexes me is why they would treat tobacco differently than any other product when the consider the submission of state sales taxes. Unless the statutes have distinct language regarding when taxes are incurred, it seems that they would be subject to the same issues as the rest of comsumer goods regarding whether state sales tax needs to be paid. I seem to remember that the Supreme Court rejected cert on this issue in the last year or two. If it's still an unsettled issue than Mastercard has no business rejecting these particular sales absent some other reasoning in the specific statutes concerning tobacco sales.
 
We don't have any cigar or sales taxes in NH. Why should I be included in this cluster f@#k.

Doc.
 
WTF! :angry: Good thing I don't own a Master Card. And it sounds like i definitely will not be getting one either.
 
That is ridiculous. I am glad I never opened a MC account, and now I never will. They are going to lose business over this kind of nannying crap. You can't tax the internet!!!!!
 
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