Sponsors (133)
The bill protects firearms retailers' privacy and limits firearm-specific transaction labeling while preserving payment-security functions, but it shifts enforcement to the federal level, preempts local regulation, and leaves retailers without a private lawsuit option — potentially slowing remedies and imposing costs on banks.
Firearms retailers (small-business owners) will no longer be labeled by firearm-specific merchant category codes (MCCs), reducing their exposure to stigma, profiling, and targeted restrictions and limiting certain data-sharing about their sales.
Small-business owners gain a federal enforcement path (state AG complaint, notice, injunctive relief) to challenge improper MCC classifications without needing private litigation.
Payment card networks and consumers retain the ability to classify transactions for anti-fraud and transaction-integrity purposes, helping preserve payment security operations.
State and local governments lose the ability to regulate MCC assignment or require disclosure for firearm sales because the bill preempts state and local laws.
Affected retailers cannot bring private lawsuits (no private right of action), leaving them dependent on DOJ priorities and resources to enforce the law.
Banks and payment processors may incur compliance costs and operational changes to avoid using firearm-specific MCCs.
Based on analysis of 2 sections of legislative text.
Bars card networks and covered entities from using MCCs that identify merchants primarily selling firearms, creates DOJ enforcement and preempts conflicting state/local rules.
Official title: To prohibit payment card networks and covered entities from requiring the use of or assigning merchant category codes that distinguish a firearms retailer from general-merchandise retailer or sporting-goods retailer, and for other purposes.
Introduced February 11, 2025 by Riley M. Moore · Last progress February 11, 2025
Prohibits payment card networks and covered entities from assigning or requiring merchant category codes (MCCs) that identify merchants primarily selling firearms, ammunition, firearm accessories, or components. The Department of Justice (through the Attorney General) must set up a complaints process, investigate violations, issue written notices requiring fixes, and may seek federal injunctions; there is no private right of action. The law preempts state and local regulation of assignment, use, or disclosure of such MCCs while allowing networks and covered entities to comply with laws on fraud, disputes, and transaction integrity and requires annual DOJ reporting to Congress.