Sponsors (18)
The bill reduces a transaction-level labeling that improves privacy for firearm purchasers and clarifies rules for payment firms, while imposing modest implementation costs and removing merchant categorization that some businesses use for accounting, fraud control, and age-verification.
Cardholders who buy firearms or ammunition: their purchases will no longer be tagged by a distinct merchant category code (MCC), removing a transaction-level data point that could be used to track or target individual purchasers.
Payment processors and card issuers: will receive clearer statutory limits on merchant categorization for sensitive purchases, reducing legal uncertainty about how they may code transactions for firearms and ammunition.
Banks, payment networks, and processors: will need to update transaction coding systems and compliance programs, creating implementation costs that may be passed on to merchants or consumers.
Merchants who sell firearms and ammunition and their payment processors: will lose a distinct MCC, making it harder to categorize sales for accounting, fraud detection, chargeback rules, and industry-specific services (e.g., age verification), which could complicate operations and risk management.
Based on analysis of 2 sections of legislative text.
Prohibits payment industry participants from using merchant category codes that specifically identify firearms or ammunition merchants.
Prohibits banks, payment card networks, issuers, acquirers, and other payment processors from using merchant category codes (MCCs) that separately identify firearms merchants or ammunition merchants. It also defines which companies are covered by the rule so a broad group of payment industry participants must stop assigning or using MCCs that single out firearms or ammunition sellers.
Introduced February 12, 2025 by Andy Ogles · Last progress February 12, 2025