Whatever happened??

For just about anything you want to get off your chest about credit cards.
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magyar1045
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Whatever happened??

Postby magyar1045 » Sat Nov 08, 2008 5:37 pm

Whatever happened to states not allowing credit card companies to process online payments for internet cigarettes purchases by their residents? States were moaning and groaning about the loss of sales tax revenues. Here in California, fo example one carton of Marlboros will typically run $37 to $40, tax included.
Some Internet online cartons cost as little as $12 to $14. No taxes but just shipping.
California's state income tax return always asks folks if they made any internet purchases on which no sales taxes were paid. As IF anyone would admit to that. Without the proper credit card companies' notifiications of customers purchasing cigarettes online states will always lose out of millions in tax revenues.


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Cucumber
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Postby Cucumber » Sun Nov 09, 2008 3:19 am

I didn't know they do that now. So you're saying they don't allow credit cards to be used at all anymore for cigarette purchases online?

I don't know why they would do that because it would be easier to track a credit card order than a money order from 7-11 that leaves no paper trail :confused:
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magyar1045
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Postby magyar1045 » Sun Nov 09, 2008 7:47 am

Nothing is being done to stop credit card outfits to disallow purchases. CC outfits don't even have to let the states know of who purchased what and when and how much it cost.

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Postby KC95 » Sun Nov 09, 2008 2:18 pm

i just checked out of curiosity for buying cigarettes online and the two sites i went to didn't accept credit cards for payments. are they not supposed to accept them?

magyar1045
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Postby magyar1045 » Sun Nov 09, 2008 3:50 pm

There are several sites wo don't take take credit cards but allow online checks. I think the reason that they don't take credit cards is because merchants have to pay the ridiculous fees that credit card companies impose on them - and not because credit card companies aren't allowed to honor the charges made by customers.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Sun Nov 09, 2008 6:51 pm

If they aren't accepting it because of the credit card processing fees, it seems like simply adding an extra dollar onto shipping (since they can't use a surcharge) would make up the difference on a cartoon of smokes.

Then I decided to look just now too and this is what it said on the bottom of one the first site listed in my Google search results:

Credit Card companies now prohibit transactions
for all cigarette sales on the internet!


After that I typed in the words "credit cards" and "cigarettes" and found this:

In an agreement reached last week with the government, credit card companies have agreed to no longer participate in the sale of cigarettes and tobacco products online. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) required this in order to control cigarette purchases across state lines.


The federal government siding with cigarette companies and bullying the credit card companies. For some reason I'm not surprised. Typical bureaucratic corruption.
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magyar1045
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Postby magyar1045 » Sun Nov 09, 2008 8:06 pm

Mogul - your two quotes refer to cigarette sales within the United States. Most online cigarette websites/sales are conducted in/from eastern Europe - especially Russia and the Ukraine.

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Postby AnthonyBarone » Sun Nov 09, 2008 11:18 pm

You telling me you can order cigs from there and customs doesn't confiscate them? Damn I'm missing out I'm going to have to give this a shot. No credit cards is sounding shady to me. Could be though that these foreigners get too many fraud complaints and chargebacks for packages that don't make it through customs and they did away with credit cards altogether for it.

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Cucumber
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Postby Cucumber » Mon Nov 10, 2008 1:58 am

I've noticed a lot of foreign stuff they sell online they aren't taking credit cards for. :( I think it's what you said about the chargebacks and then with stuff like cigarettes that can be resold easily to mom and pop stores they probably are a higher risk thing that crooks would order with stolen credit cards and then sell them.
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fffresh
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Postby fffresh » Mon Nov 10, 2008 10:16 pm

The vendors avoiding charge backs appears to be the most logical explanation. Although merchant fees may have an impact I do not believe any wise business would risk losing out on a significant amount of customers to merely avoid the 2% to 3% in fees that are imposed from card processing.



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