Posted on 03/18/2005 8:37:43 AM PST by JusticeTalion
If you buy smokes online you may just be screwed. All major credit card companies in the United States have voluntarilly agreed to ban all internet transactions concerning cigarettes regardless of the customer. And they kept it extremely quiet until today.
I found exactly two articles on it and both were regional papers requiring subscription. The move is ostensibly shaded with the "Let's keep tobacco out of kid's hands" malarkey but the real reason is stated later. States are tired of losing tax revenue to out-of-state buyers so they completely banned all cigarette purchases.
What does this mean? I am writing to my credit card companies to find out. What if I want to buy a humidor for my Uncle's pipe collection. What about cigars, snuff and chewing tobacco? Are these banned too?
How this got arranged with not one peep about it in the news is amazing. No protests, no dissension, not one word from anyone. I am not real thrilled by being banned from buying a legal product with a recognized legal tender in the United States. And this is not just a business move. It has the full backing of state officials and the federal government in the form of the Bureau of Alcohol, Tobacco, Firearms and Explosives. That makes it something that our representatives can fight against.
Fascism, in any form, SUCKS!
For some reason (chuckle) I smell within the smoke, the rancid aroma OF THE IRS !!!! Since this is something the CC companies would NOT consider good for business, what leverage was used on them ???
I'll look. But it has the feel of a urban legend.
Depending on how much you spend on smokes, the small surcharge could make it worth it.
Who is it you know who buys their cigerettes online? Do they use a credit card? I bet they don't know about this.
March 18, 2005, 1:13AM
Credit cards off limits for online cigarette sales
Associated Press
ALBANY, N.Y. — Major credit card companies will refuse to participate in Internet sales of cigarettes nationwide under a government agreement made today.
The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the companies and state attorneys general agreed to work together to prevent the long unchecked use of credit cards to buy cigarettes over the Internet across state lines. The agreement is effective immediately.
The result is that virtually all credit cards will no longer participate with Web sites based in the United States and abroad that sell cigarettes and tobacco products in every state, said New York Attorney General Eliot Spitzer. The card companies also agreed to take action against Internet sellers that authorities identify as violating state and federal laws regulating cigarette sales.
The effort is important because enforcement has been difficult, even though in many states, including New York, the Internet sale of tobacco products is illegal. The trade undercuts traditional business operators, often avoids sales tax for states and localities, and can be a way for underage consumers to buy cigarettes and chewing tobacco before they turn 18.
"By working with all the major card companies, we will severely restrict the availability of the Internet retailers to make these illegal sales," said Spitzer, one of the lead attorneys general in the partnership sealed Thursday.
The negotiations were also led by California Attorney General Bill Lockyer and Oregon Attorney General Hardy Myers. Attorneys general from Colorado, Idaho, Louisiana, Maryland, Pennsylvania, Vermont and Wisconsin also participated.
"ATF investigations show that millions of dollars each year in illegal sales of cigarettes are diverted to fund terrorists and criminal organizations," said Michael Bouchard, ATF assistant director for field operations. "Through today's initiative, we are addressing the problem of illegal sales across multiple jurisdictions with tremendous support from the country's largest credit card companies. We welcome the help."
Smokers can still buy cigarettes over the Internet, but they would have to use checks, money orders or some other payment system that would likely delay receipt in the Internet business built on speed.
New York's ban on Internet cigarette sales was the first in the nation. But opponents argued the law wasn't about minors smoking, but about state tax revenue. The state's tax on a pack of cigarettes is $1.50, pushing the total price to around $5. Lower prices are offered on the Internet and in mail-order catalogs by tax-exempt Indian merchants and retailers in states with lower taxes.
In January, a federal judge tossed out racketeering charges against a group of online cigarette sellers. New York City had sued 16 cigarette Web sites to require taxes be paid on Internet sales. The city, which estimates it loses as much as $100 million a year because of the unpaid cigarette sales taxes, continues to seek to recover $15 million.
This site was perfectly happy to take my Visa number to purchase a carton of Marlboros.
http://www.cheap-cigarettes-sale.com/
I suspect this is an urban legend created by the smoke sellers to generate traffic to their sites.
It worked for this non-smoker.
If this stands, other politically incorrect purchases could be banned as well.
You know...I've wondered about this...what happens with checkcard transactions? (i.e. the cards issued by your bank that can be used like a credit card, but they're really not...the money comes directly out of your checking or savings) Would this scheme apply to those too?
Looks like it is not an urban legend.
This is scary.
What legal products will be next? Guns?
Actually it's a trade off for getting the new bankruptcy bill passed.
I've been wondering the same thing and can't seem to find an answer.
If this is true of my credit card companies I will stop using them both entirely.
Time to invest in stock of money order companies?
I kind of find this hard to believe...... But I'll do some checking.
It's true enough.........it started with Master Card. there have been several stories about it on FR the past week or so........including one either late last night or this morning.
Sounds like more revenue for 2nd party payment companies like Paypal.
Flyer has a good point here
http://www.freerepublic.com/focus/news/1365511/posts?page=12#12
This went through with no public knowledge.
If it worked for cigarettes, it can work for guns.
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