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Read More >>According to a 2024 study, nearly 20% of tobacco retail transactions involve no age verification. And if you own tobacco stores, that probably keeps you up at night.
Not carding customers exposes tobacco and vape shops to a huge compliance risk. The FDA, for example, has conducted 1.5 million tobacco compliance checks since 2020, resulting in 134,000 warning letters, 30,000+ fines and 230 revoked tobacco licenses.
Fortunately, POS age checking tools (like cashier age verification prompts and integrated ID scanning) make compliance easier than ever.
This is especially important thanks to two new tobacco retail compliance requirements:
- Updated FDA age restriction guidelines – Retailers must card anyone 30 years old or younger starting Sept. 30.
- Altria checking to see if stores meet “Age Validation Technology (AVT) Enabled” requirements – Stores that don’t meet Altria’s age verification standards can lose higher tier scan data incentives.
Is your tobacco shop using AVT technology for electronic ID scans?
You should be. POS-enabled AVT technology – a core feature of FTx POS (FasTrax) – scales compliance across your operation. With FTx POS + age verification at the register, your business can automate ID checking prompts and meet these new requirements.
The FDA’s New Tobacco Compliance Rule
The FDA’s new tobacco compliance rule, known as the “age verification rule,” is designed to prevent the sale of tobacco products to minors. This rule requires retailers to card individuals who appear to be 30 years old or younger, starting on September 30, 2024. This is up from 27 years old (as was the rule until now).
This policy is intended to reduce underage tobacco sales. Some key points of rule include:
- Carding age: Retailers must card individuals who appear to be 30 years old or younger.
- Refusal of sale: If an individual cannot provide valid identification or is under the age of 21, the retailer must refuse to sell the tobacco product.
- Record-keeping: Retailers may be required to keep records of age verification attempts, especially in a compliance investigation.
- Enforcement: The FDA can impose penalties on retailers who violate the age verification rule, including fines and loss of tobacco product licenses.
How FTx POS Helps You Meet FDA Standards
The integrated age verification tools in FTx POS can help you in several ways:
- Adding cashier prompts to scan the customer’s ID.
- Keep records of ID scans on tobacco (e.g. percentage of sales that included a scan).
- Offering online and in-store ID scanning tools.
- Providing POS-integrated ID scanners and card swipes (that check DOB and expiration date).
- App integration with FTx Identity to allow customers to build digital wallets containing age verification (for in-store or online purchase).
Reduce Your Compliance Risk. If you sell tobacco, you need a system that’s designed for tobacco compliance – FTx POS. Contact us today to learn more. Our tobacco shop POS is equipped with every tool that retailers need to meet FDA and Altria compliance and maximize tobacco scan data rewards
POS System Age Verification Tools for Altria Program
Altria provides scan data tobacco incentives for retail stores, and if they use age validation technology (AVT), retailers can maximize their rewards.
Why? Because Altria wants to prevent their products from reaching minors, and they want to improve ID checks to reduce human errors. In 2024, Altria will be verifying that stores are AVT Enabled and using compliant technology.
To be compliant, your POS system’s age verification tools must include:
- POS system prompts cashiers to scan IDs (for tobacco sales).
- POS system’s card reader or 2D barcode scanner can scan, read and interpret a consumer’s government-issued ID.
- The POS system should confirm a customer’s date of birth and the expiration of the ID card.
- Signage like the We Card signs must be properly displayed.
Learn More. See how Smokers Choice maximized its scan data rewards and grew revenue by 400% using AVT and loyalty technology in FTx POS.
Are You AVT Enabled Compliant?
Beginning in September 2024, Altria will start confirming the validity of the store’s AVT tools. Altria says if a store has fallen out of compliance, they could potentially:
- Lose AVT status
- Loss of AVT resources and benefits
- Stores can no longer access higher tier benefits or select Promotional Allowances
Why Use AVT?
Altria wants to make sure stores are the most trusted place to buy tobacco products. AVT helps prevent underage sales by requiring electronic ID scans. Stores with AVT are more likely to pass compliance checks.
Some of the key benefits for retailers include:
- Prevents underage tobacco sales
- Reduces human error in ID checks
- Helps retailers stay compliant with regulations
- Unlocks access to benefits like higher tiers in the AGDC Digital Trade Program, as well as merchandizing funds from manufacturers
- Higher tiers in the AGDC Digital Trade Program (more resources and incentives)
How FTx POS Helps You Meet Altria AVT Notices
FTx POS (FasTrax) is one of just a dozen POS systems designed to maximize retailers’ Altria incentives. Our POS system for smoke shops offers unlocks the full range of Altria benefits, including:
- Scan Data
- Price Promotion & Loyalty Fund Program APIs
- Age Validation Technology (AVT)
Wrapping Up: Stay Compliant with FasTrax
FTx POS offers a variety of age verification integrations that meet Altria requirements. In addition to integrated card scanners and barcode readers, we also offer a full-service Age Verification platform, FTx Identity.
Our online age verification app meets AVT requirements and is a must-have feature in a smoke shop or vape shop POS system Plus, key benefits of the technology include:
- Enabled for ecommerce age verification
- Can ensure you keep proper compliance records
- Offers electronic ID card scans for hundreds of government-issued documents
- Can be integrated into the POS to quickly verify a customer’s age
- Can be integrated into a loyalty program (to meet Altria’s loyalty program age verification guidelines)
Demo FTx POS. Transform your tobacco or vape shop with FTx POS. Our POS platform is used in the largest tobacco chains in the U.S. for a reason – it’s the best solution with every feature you need. Schedule your demo today!
FAQs
Common mistakes with POS age verification include bypassing the ID scanner or the age prompt of the POS system, and not providing practice for employees at using age calculation tools, denying sales, or learning what to say.
Yes. Even if you know the customer is over 21, you must card them every time they purchase a tobacco product. This is an FDA requirement for all customers under 30 years old.
It's possible, but it's important to avoid doing so. Bypassing these features can lead to violations and is not recommended. If a cashier needs to override the normal process, this process can be monitored in Control Center .
Carding a customer involves more than just asking for their ID and scanning it with an AVT system. You must carefully examine the ID to ensure it is valid, current, and belongs to the person presenting it. Additionally, you need to verify that the person is 21 years old or older. Taking the time to follow these steps can help prevent compliance violations.
In some cases, yes, age verification technology at the register can prevent your business from being labeled high-risk. AVT helps you meet strict age restriction standards, it mitigates risk and helps protect your (and your card processing company’s reputation). Therefore, if you sell age-restricted products like tobacco or alcohol, an AVT platform in your POS system may help reduce your risk in the eyes of smoke shop card processing companies.
