Thursday, July 30, 2026 –  Mastercard has temporarily suspended assessments against certain retailers cited for ENDS-related compliance issues while affected merchants implement remediation plans. The card network’s action follows a July 22, 2026 coalition letter from EMA and allied trade associations, challenging Mastercard's interpretation of FDA policy.

Background

Recently, Mastercard issued substantial fines to retailers selling vape/e-cigarette/Electronic Nicotine Delivery Systems (ENDS) products not appearing on FDA's list of 45 marketing-authorized products. Mastercard’s actions appear to have followed April 2026 letters from a group of State Attorneys General, urging the payment card networks to assist in curbing sales of illicit e-cigarettes.

EMA joined the National Association of Tobacco Outlets, NACS, and the Convenience Distribution Association in a July 22, 2026 letter to Mastercard General Counsel Tiffany M. Hall. The coalition expressed support for efforts to stop illicit vape sales but objected that Mastercard's enforcement is based on the incorrect premise that every ENDS product lacking FDA premarket authorization is subject to FDA enforcement.

The coalition letter cited FDA's May 8, 2026 guidance, Enforcement Priorities for Certain New Tobacco Products Marketed Without Premarket Authorization. FDA explained that, because it lacks the resources to pursue every unauthorized ENDS product, it generally does not intend to prioritize enforcement against products covered by accepted and filed Premarket Tobacco Product Applications (PMTAs) (or certain pending supplemental PMTAs), provided specified criteria are met. The guidance does not apply to products presenting heightened public-health concerns or those with features appealing to minors.

The coalition asked Mastercard to revise its policy to confirm that products marketed consistent with the FDA’s May 8 guidance, and in compliance with applicable state and local restrictions, may be sold at retail pending a final FDA determination on the particular PMTA at issue.

Mastercard's Response

In a July 27, 2026 reply, Ms. Hall stated that Mastercard's May 2026 acquirer update was intended to remind acquirers to be mindful of FDA and other jurisdictional requirements and to implement robust controls, and that Mastercard did not request any acquirer to alter its relationship with merchants selling lawful ENDS products. Citing additional information received regarding acquirers' specific merchant customers, Mastercard advised that it has decided to temporarily pause any assessments to provide customers additional time to execute remediation plans and ensure compliance. Mastercard committed to providing updates as they become available.

What This Means for EMA Marketers

Although Mastercard has paused assessments, it has not yet indicated that it will adopt the compliance standard reflected in FDA’s May 8, 2026 enforcement guidance. EMA and the coalition continue to maintain that this guidance permits the retail sale of certain products with pending PMTAs notwithstanding the absence of a marketing authorization.

Members that have received Mastercard assessments or communications from their acquiring bank should:

• preserve all assessment notices and related correspondence;

• document the PMTA status of ENDS products offered for sale;

• verify compliance with applicable state ENDS directory and licensing requirements; and

• continue working with their acquiring institution regarding any requested remediation while the temporary pause remains in effect.

EMA will continue its efforts with the coalition to seek clarification that Mastercard's policies appropriately reflect FDA's current enforcement guidance.