The controversy over a new Merchant Category Code (MCC) specifically for purchase of guns and ammunition continues to grow and is now gaining attention at the federal level.
At issue is a new MCC for gun purchases adopted by the International Organization for Standardization in early 2023. MCCs are used by payment processors (like Visa and Mastercard) and other financial services companies to categorize transactions.
Prior to the creation of the specific gun code, firearms retailers fell under the MCC for sporting goods stores or miscellaneous retail. When the new code is used, credit card companies and other payment processors can tell that the purchases were firearms, creating a de facto gun registry.
This past legislative session, anti-gun states including New York, California and Colorado passed laws specifically requiring the use of the firearms-related MCC. On the other side of the issue, several more gun-friendly states, including Utah, Florida and Georgia, passed laws to stop the use of such codes.
Now, two members of the U.S. House of Representatives have introduced legislation to halt the use of the gun-specific MCC nationwide, thereby protecting gun owners’ privacy. U.S. Rep. Elise Stefanik of New York and Rep. Andy Barr of Kentucky wrote in a November 4 op-ed posted at Newsweek.com that their legislation, the Protecting Privacy in Purchasing Act, is meant to protect America’s gun owners from unnecessary intrusion by financial institutions.
“The creation of MCCs specifically for firearms retailers is weaponizing the financial system against lawful gun owners by seeking to label and track transactions on firearms and ammunition,” they wrote in the op-ed. “Our bill aims to ensure that firearms retailers are not unjustly targeted by payment card networks or other financial entities, and purchases by law-abiding citizens are protected from monitoring and denial by the government. Specifically, our bill ensures that firearms retailers are not considered differently than general or sporting goods merchants
“This protection preserves the privacy of Americans making lawful purchases, prevents the creation of a backdoor registry of gun owners, and guarantees that legal commerce is not unfairly surveilled or impeded based on the nature of the goods sold.”
The House Members also said pressure from many directions prompted the introduction of their legislation.
“The need for this legislation has increased as numerous unelected bureaucrats and global standard-setting bodies attempt to influence U.S. institutions to infringe on the constitutional rights of the American people,” they wrote. “These Left-leaning groups, which often operate without any transparency or accountability to the American people, propose frameworks that don’t align with the interests or values of our country. The U.S. payment system facilitates frictionless transactions allowing Americans to quickly access goods and services and in turn strengthen our economy. We should not politicize our payment system or allow liberal groups to use global standard-setting bodies to push their social agenda at the expense of the privacy and rights of our citizens.”
In the end, Reps. Stefanik and Barr believe passage of their legislation is critical for protecting both gun owners and the Second Amendment.
“By preventing the establishment of distinct MCCs for these retailers, we are making it clear that the act of purchasing a rifle for hunting, a handgun for personal protection or ammunition for sport shooting deserves the same level of privacy as any other legal transaction,” they concluded. “Our commitment to this principle is unwavering and founded on the belief that the privacy of American consumers should never be compromised.”
Whether or not the measure gets any traction in Congress will depend largely on the results of today’s election. Should Republicans control the House, Senate and presidency, it would likely face some success in the upcoming session. But if Democrats control either legislative body or retain the presidency, the measure faces a much more difficult road to passage.
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