As of 1/1/17, Crescent City Clouds will not be accepting or be able to accept MasterCard as a form of payment for Online Purchases. We have been thrown under the bus by the FDA and now that we are considered a tobacco product, MasterCard is forcing all vendors to pay $500 annually to them as we are now a tobacco product.
We have worked night and day to find a solution to this and our only one that we have found was to switch our processor and not be able to accept Mastercard.
These changes will take effect starting January.
While we understand this may frustrate some, please take this into account.
We were informed about this by our processor, two weeks ago. This gives us three weeks to figure it out.
As a merchant, we should have the option to accept or not accept any credit card that we want. The fact that we are being forced to comply with a credit card company's policy for tobacco products, now that we are federally classified as a tobacco product, sets a precedent for all other credit card companies to follow suit. $500 now would cost $2000 annually if all the big players joined in.
While this is just for online orders, it also requires ASV (Adult Signature Verification) from USPS if you purchase with Mastercard, as well as a compliance letter from a lawyer stating that we are up to compliance with ALL of the FDA regulations. There is no way for our e-commerce platform to know, before you check out, what the card being used would be. ASV costs $6 on top of priority mail. As far as the letter goes, lawyers are not cheap. Since MasterCard doesn't even know what they are doing, it’s a cash grab, that if the regulations get changed at all, we would not be reimbursed.
Setting this precedent is the best way we, as merchants and vendors, can try and fight it.
Hopefully we can start accepting it late January early February.
If you have any questions at all, Please email us at firstname.lastname@example.org.