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Mastercard blocking Tobacco Sales Online

thegoldenmackid

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Correct me if I'm wrong here, but the fee and the general BS is from your merchant processor, not MC themselves?
Don't think so. They set up a website, I have a copy of one of the letters that was sent out.

Link (At the bottom)

Edit: oops... didn't realize the picture was so damn small. Trying to get a bigger picture.
 

The EVP

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Let's see, I can't use MC to buy cigars that I'm going to smoke at home or at the lounge in a safe manner, but I can use it buy a fifth of Jim Beam, get drunk, possibly drive and risk the lives of everyone else on the road?

As someone pointed out in an earlier post, I'd stop taking MC and put up a sign explaining why the customer can't use their card to buy what they want.
 
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Deja vu all over again? MC seems to keep coming up in smelly (and scary) stories.

http://www.botl.org/community/forums/showthread.php?t=23667

I can't confirm accuracy, but I also remember MC (or their processors) being at center of two other cigar sales controversies:
-releasing sales info to states trying to get taxes from their residents buying online from out of state, and
-releasing names to Treasury Dept of people buying Cuban cigars and shipping to US addresses.

I've always avoided using MC for any internet sales just because of these recurring stories (rumors?).
 

Thegreekone

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Alright, now I am seriously PISSED!

Pull the trigger on my first CCs yesterday (Yes, I am in the deep end of the pool. So fire me!)

They did NOT allow the transaction!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

WTMF?

One minute I'm reading the thread, get home yesterday and their is a VM saying "blah, blah, blah....you are SCREWED and so is your transaction to BSCs. :argh:
 

thegoldenmackid

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Deja vu all over again? MC seems to keep coming up in smelly (and scary) stories.

http://www.botl.org/community/forums/showthread.php?t=23667

I can't confirm accuracy, but I also remember MC (or their processors) being at center of two other cigar sales controversies:
-releasing sales info to states trying to get taxes from their residents buying online from out of state, and
-releasing names to Treasury Dept of people buying Cuban cigars and shipping to US addresses.

I've always avoided using MC for any internet sales just because of these recurring stories (rumors?).
For the record, there was only one person who got in trouble for importing ISOMs in 2009.

Linky
 
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This is an absolutely ridiculous policy! I'm sure that if all the tobacco purchasing card carriers joined together and canceled their accounts with MC the policy makers would surely re-think this idiotic policy. What ever happened to freedom of choice?
 
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For the record, there was only one person who got in trouble for importing ISOMs in 2009.

Linky
That is very good news. Thank you!
After doing a little digging, I wonder also about my other comment regarding states going after tobacco buyers through Master Card. It appears that, at least, for cigarette sales, some federal law(s?) can be used to force sellers to turn records over to state revenue departments. Couldn't find the law, but I suppose that might be the method, vice going through credit card companies.

While we keep dodging the internet sales tax bullet, I have to think that one of these days the states are going to figure out how to hit us with tobacco taxes on internet sales. Only a matter of time. B&M's have to be excited about that prospect.
 

AlohaStyle

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Alright, now I am seriously PISSED!

Pull the trigger on my first CCs yesterday (Yes, I am in the deep end of the pool. So fire me!)

They did NOT allow the transaction!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

WTMF?

One minute I'm reading the thread, get home yesterday and their is a VM saying "blah, blah, blah....you are SCREWED and so is your transaction to BSCs. :argh:
Is it possible that it is just a simple security/anti-fraud measure? Just last month my Visa credit card didn't go through. It's a card I have been using for years but the fraud dept stopped the transaction because it was an out of country purchase. After I confirmed my details etc, the sale went through.
 

dpricenator

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That is very good news. Thank you!
After doing a little digging, I wonder also about my other comment regarding states going after tobacco buyers through Master Card. It appears that, at least, for cigarette sales, some federal law(s?) can be used to force sellers to turn records over to state revenue departments. Couldn't find the law, but I suppose that might be the method, vice going through credit card companies.

While we keep dodging the internet sales tax bullet, I have to think that one of these days the states are going to figure out how to hit us with tobacco taxes on internet sales. Only a matter of time. B&M's have to be excited about that prospect.


I heard that the state of CA subpoenaed J.R. Cigars for their records and sent tax bills to a bunch of people.
 

thegoldenmackid

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That is very good news. Thank you!
After doing a little digging, I wonder also about my other comment regarding states going after tobacco buyers through Master Card. It appears that, at least, for cigarette sales, some federal law(s?) can be used to force sellers to turn records over to state revenue departments. Couldn't find the law, but I suppose that might be the method, vice going through credit card companies.

While we keep dodging the internet sales tax bullet, I have to think that one of these days the states are going to figure out how to hit us with tobacco taxes on internet sales. Only a matter of time. B&M's have to be excited about that prospect.
It's been discussed a bit in other places, but if states are going to get pissy about people not paying tobacco tax because of online sales, they are first going to do what New York did (Amazon v. New York) - tobacco taxes are minimal compared to the amount of money states lose via just general online sales.
 

Thegreekone

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Is it possible that it is just a simple security/anti-fraud measure? Just last month my Visa credit card didn't go through. It's a card I have been using for years but the fraud dept stopped the transaction because it was an out of country purchase. After I confirmed my details etc, the sale went through.

That is EXACTLY what happened. CCs are on the way. :)
 
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