Attorney General Wilson Joins Coalition Urging Credit Card Networks to Block Illegal E-Cigarette Sales
Summary
South Carolina Attorney General Alan Wilson joined a 13-state coalition in a letter to major credit card networks (Visa, Mastercard, American Express, and Discover) urging them to stop processing payments for illegal e-cigarette products. The coalition states that only 41 e-cigarette products have received FDA authorization for legal sale, while thousands of unauthorized brands continue to sell products generating $11 billion in annual retail sales—representing over 80% of the U.S. e-cigarette market. The AGs argue that payment platforms are already violating their own network rules regarding illegal transactions and high-risk merchant categories by facilitating these sales.
What changed
The South Carolina Attorney General joined a 13-state coalition letter to major credit card networks (Visa, Mastercard, American Express, and Discover) urging them to identify and remove merchants selling illegal e-cigarettes. The letter argues that current practices violate existing card network rules regarding illegal transactions, high-risk merchant categories, and brand protection. The coalition states only 41 e-cigarette products are FDA-authorized while thousands of unauthorized brands generate $11 billion in annual retail sales.\n\nPayment networks processing transactions for e-cigarette merchants should anticipate heightened scrutiny of their high-risk merchant category rules. Merchants selling unauthorized e-cigarette products may face increased pressure from payment processors as a result of this multi-state coalition action, potentially affecting payment processing relationships in the e-commerce retail space.
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Apr 21, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
APR 20, 2026
Attorney General Alan Wilson continues work to stop illegal Chinese vapes
(COLUMBIA, S.C.) – Attorney General Alan Wilson is joining a 13-state coalition in a letter asking major credit card networks to stop the sale of illicit e-cigarette products.
These products account for almost all the U.S. e-cigarette market, with $11 billion generated in annual retail sales. This makes up more than 80% of all e-cigarette sales nationwide.
Only 41 e-cigarette products have been authorized for legal sale in the United States by the Food and Drug Administration. However, thousands of unauthorized brands continue to use platforms like Visa, Mastercard, American Express, and Discover to facilitate illegal transactions.
“These products are deliberately designed and packaged to appeal to children,” Attorney General Wilson stated. “It is clear that Chinese networks, Mexican drug cartels, and other criminal organizations are targeting our nation’s young people.”
The states argue that payment platforms must be more aggressive in identifying and removing merchants engaging in the sale of these illegal e-cigarettes. They also argue that the sale of these products already violates card network rules regarding illegal transactions, high-risk merchant categories, and brand protection.
“As Attorney General, I’ve taken action against these illegal products in South Carolina,” Attorney General Wilson said. “We’ll continue to work with our law enforcement partners to protect our children, communities, and way of life from foreign groups seeking to destroy them.”
In addition to South Carolina, attorneys general from the following states joined the Iowa-led letter: Alabama, Arkansas, Georgia, Indiana, Kentucky, Montana, Nebraska, North Dakota, South Dakota, Utah, and West Virginia.
You can read the letter here.
Media Contact
For media inquiries please contact Robert Kittle, [email protected] or 803-734-3670
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