blondie357
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Reged: 04/28/04
Posts: 22
Loc: FL
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Deal Aims to Prevent Web Cigarette Sales
ALBANY, N.Y. (AP) - Major credit card companies will refuse to participate in Internet sales of cigarettes nationwide under a government agreement made Thursday.
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.
States lose more than $1 billion a year in tax revenue from Internet tobacco sales, said Sheree Mixell, ATF spokeswoman.
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.''
Earlier this month MasterCard International issued a bulletin to its member banks on ``the need to comply with rules governing the Internet sale and shipment of tobacco.''
``MasterCard does not tolerate illegal activities of any kind,'' the statement said.
The agreement announced Thursday also includes American Express, Visa, Discover, Diners Club and the Internet financial transaction service PayPal, which is owned by eBay Inc.
Joshua Peirez, senior vice president at MasterCard, told The Associated Press the policy basically meant the card couldn't be used for Internet purchases of tobacco ``because at this point, no merchants are complying with all of these laws.''
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. Operators of cigarette Web sites didn't immediately respond to requests for comment.
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 $15 million.
AP Business Reporter Eileen Alt Powell contributed to this report from New York.
On the Net:
http://www.atf.gov
http://www.oag.state.ny.us
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scarrlett
Enthusiast
Reged: 02/02/04
Posts: 280
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 Re: Credit card companies will refuse online cigarette purchases [Re: blondie357]
#239143 - 03/19/05 09:15 AM
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Quote:
``ATF investigations show that millions of dollars each year in illegal sales of cigarettes are diverted to fund terrorists and criminal organizations,'' said Michael Bouchard, ATF assistant director for field operations. ``Through today's initiative, we are addressing the problem of illegal sales across multiple jurisdictions with tremendous support from the country's largest credit card companies. We welcome the help.''
Bull$hit!! It all has to do with your state or federal gov not receiving the tax money on the sales. Good grief, they throw "terrorism' out at everything under the sun be it cigarettes or ordering meds from Canada or any other overseas country. But I guess that's obvious when they go on with:
Quote:
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.
What's sad is there are too many people who don't educate themselves & end up believing this [censored]!
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CARLITOS_WAY
Board Addict
Reged: 06/27/04
Posts: 327
Loc: WASHINGTON, USA
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Scarrlett, If you smoke, there are still some online cigs that take c/c if you need a list? Let me know. Or are you just mad about the govn't taxing us to death!  )
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Desiree99
Stranger
Reged: 11/23/04
Posts: 24
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Re: Credit card companies will refuse online cigarette purch [Re: CARLITOS_WAY]
#239175 - 03/19/05 11:31 AM
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Isn't that cute, how they spring the "T" word in defense of every constitutionally questionable thing they do these days? Yes, my cigarette provider stopped taking my credit card a few weeks ago. They also moved out of NY. They say those saps just lost thousands of dollars of tax money by forcing them to leave the state. I have a feeling that this will get wilder and even more punitive - they feel they have the moral upper hand since the subject at hand is "vile cigarettes". What assholes.
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Lablady2
Old Hand
Reged: 05/05/04
Posts: 491
Loc: New York City
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You must also use CigarettesExpress????? Long time customer of theirs - they are to cigarettes for me what OP4L is to meds - bigtime fan of theirs - and am very loyal to places I patronize......
I was absolutely furious when I heard what happened - even wrote Spitzer the attorney general in NY who is behind all of this - plans to run for governor against the other wonder - both of which make me glad I won't be living in NY any longer when those elections go down.....
I still use CigarettesExpress though - they have relocated to New Mexico and have a thing where they will debit your checking account. It took maybe 3 days longer for cigarettes to get here - but hey - there is an upside to all of this. You don't get those cigarettes that self extinguish as they must have in NY where you have to relight them 5 times!!!!!!!!
Wrote them and wished them luck and told them I would always remain their customer - and Ted - the guy in charge sent me back such a nice e-mail. I always manage to find places to do business with that have "issues" but they always manage to solve them - and most of all these places are dependable and run by very nice people who are not in business to rip you off!!!!!!!!!!
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Murple
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Reged: 09/12/02
Posts: 278
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I havent touched tobacco in over 6 years, and never will again... but this is dumb. Its also pretty scary, because if they can do this for cigs, what's next? Beer, porn, medication, rap music, political magazines? It seems unlikely credit card companies would let things go that far, and given how widely used credit cards are online for other "illegal" things I doubt even this cigarette ban will accomplish much... but anyone who values their freedom ought to write and complain about this and tell them its unacceptable sooner rather than later. Money talks, and theres limits to how far corporations are willing to go along with stupidness like this if they think they'll anger enough customers to affect their profit margin.
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blondie357
Stranger
Reged: 04/28/04
Posts: 22
Loc: FL
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It is amazing, isn't it, that "T" word? I see on today's news they are trying to ban "sexy cheerleading." I suppose the next article that I read about the proposed ban will state that sexy cheerleading is somehow funded by, or is going to fund, "T" networks....Want to ban/abolish something? Just use the "T" word....
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scarrlett
Enthusiast
Reged: 02/02/04
Posts: 280
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LOL Tony! Yeah, I smoke...I'll gladly take the list, if you would be so kind! 
The taxes are annoying, but it also drives me crazy the way 'terrorism' is thrown around as a scare tactic to deter people from buying anything the government would lose tax money on. What's worse are the people who believe it.
(Does this post make ANY sense? lol)
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