Should gun store sales get special credit card tracking? States split on mandating or prohibiting it

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Financial Institutions,Gun Stores,California

Beginning Monday, a California law will require credit card networks like Visa and Mastercard to provide banks with special retail codes that can be assigned...

But new laws will do the exact opposite in Georgia, Iowa, Tennessee and Wyoming by banning the use of specific gun shop codes.

“We view this as a first step by gun-control supporters to restrict the lawful commerce in firearms,” said Lawrence Keane, senior vice president of the National Shooting Sports Foundation, an industry group that backs laws blocking use of the tracking code. Those category lists are distributed by credit card networks to banks, which assign particular codes to businesses whose accounts they handle. Some credit card issuers use the category codes for customer reward points.

At the urging of New York-based Amalgamated Bank, which worked with gun-control groups, the International Organization for Standardization adopted a new four-digit category code for gun and ammunition shops in 2022. Major credit card networks initially said they would implement itMunoz, who helped lead the effort to establish the firearms store code, noted credit cards were used to buy weapons and ammunition for some of the nation’s deadliest mass shootings.

Democratic-led legislatures in Colorado and New York this year also passed firearms code mandates aligned to kick in with California's next May. The merchant code could lead more people to buy guns with cash instead of credit in order to protect their privacy, said Dan Eldridge, owner of Maxon Shooter’s Supplies in suburban Chicago. Though his business has yet to be recategorized, Eldridge said he already has placed an ATM in his store.

 

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