I don't believe for one minute that this came from the credit card companies themselves.
I can't say I blame JFH for losing Paypal access, because Paypal is evil, and may have stripped JFH's account with or without cause. It happens, a lot. And they are probably still on a blacklist, hence the reason they are scrambling to figure out a way around it, instead of having a Paypal account setup same day.
But I truly believe what happened in this case is that the service JFH was using to process the credit cards, the gateway company (seperate from Visa/Mastercard), cut them off. Some gateway companies don't want their clients dealing in tobacco, or want to charge them more for dealing in tobacco. Were the rates raised and JFH didn't want to pay? Were they trying to sneak tobacco sales by a gateway that forbids tobacco sales? Did the gateway company suddenly go anti-tobacco sales and cut them off?
There are gateway companies out there that allow tobacco sales. You just have to pay more in processing fees, and you have no problems. How do I know this? SmokingPipes, pipeandcigars, etc. are still up and running. If the big boys crash, then we can run around chanting "the sky is falling." Until then, I believe it's just another retailer who didn't pay the electric bill, and not a blackout.
One more thing...the owner of JFH is a man. So I don't know if the woman someone spoke to on the phone was his wife, or just a checkout clerk. I would expect to speak to the owner before I believed the first person to pick up the phone. JFH changed ownership a few years ago. It's still a decent brick and mortar, but they have had their speed bumps along the way. Somewhat recently an anti-smoking law was passed at the city level, and created all kinds of headaches for local bars and JFH.
JFH deserves support, but only if they are upfront and honest with their customers. Causing a panic by saying "we are the first retailers to be notified of impending collapse of online tobacco sales" is reckless at best, disgusting at worst if it isn't true. I guess we will know in a month's time, if all the other online tobacco sites go down. If they don't, my business with JFH is done.