Sponsors
The bill protects uninterrupted, uniform payment processing for firearm-related transactions at the federal level but does so by restricting state-level monitoring and enforcement options and by empowering federal litigation against states, trading local public-safety tools for national payment uniformity.
Cardholders, firearm retailers, and small businesses will keep using ISO merchant category codes for firearm-related purchases, avoiding disruptions to payment processing and checkout.
Payment networks, merchants, and financial institutions will face a uniform federal rule that prevents a patchwork of state restrictions, simplifying cross-state payments and merchant reconciliation.
Consumers (including families and youth) may lose a local avenue to block or flag risky firearm purchases because states are limited in using payment networks to detect or intervene in concerning transactions.
State governments and law enforcement lose a regulatory and monitoring tool over firearm-related transactions, reducing state-level options for public-safety oversight.
The Department of Justice gains a private right to sue states, raising the likelihood of federal-state litigation and potential legal costs for states (borne by taxpayers).
Based on analysis of 2 sections of legislative text.
Prohibits states from banning or discouraging use of merchant category codes that identify firearm-related merchants or transactions and lets the Attorney General sue to enforce the ban.
Prohibits states from banning or discouraging the use of ISO merchant category codes (MCCs) that identify merchants or payment-card transactions involving firearms, ammunition, ammunition components, or firearm accessories. The measure adds a federal prohibition and authorizes the U.S. Attorney General to sue in federal court to enforce that prohibition.
Introduced January 16, 2026 by Maxwell Frost · Last progress January 16, 2026