The Associated Press reported March 18 that the credit-card firms agreed not to process payments from online cigarette companies, cooperating in a crackdown on websites that allow customers to buy cigarettes without paying state taxes. The federal Bureau of Alcohol, Tobacco, Firearms and Explosives also was a party to the deal, which goes into effect immediately.

"The way the system works now, tobacco can get into the hands of minors, and these sales are depriving the states of revenue," said Bob Cooper, a spokesman for the Idaho attorney general's office. States estimate that they lose $1 billion in tax revenues annually because of online sales, and many have recently begun billing buyers for back taxes on Internet purchases.

Buyers would still be able to pay for cigarettes with checks, money orders, or other payment methods.

Attorneys general from New York, California, Oregon, Colorado, Idaho, Louisiana, Maryland, Pennsylvania, Vermont, and Wisconsin signed the agreement.

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