IN-DEPTH: States Stop Credit Card Companies From Tracking Gun Purchases, It May Not Last

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States stop de facto firearm registry

Credit card companies were preparing to track the purchase of firearms and ammunition of every American citizen. While a flurry of bills lobbed by state legislators caused all of them to reconsider those plans, it may only be a temporary victory.

Almost one year ago, an effort was launched to create a new Merchant Category Code (MCC) to track the purchases of firearms and ammunition. However, inspired by the uproar of Second Amendment constituents, Republicans in the United States Senate, as well as lawmakers in several states, have launched legislative efforts that have successfully shut them down—for now.

On March 21, United States Sen. John Thune (R-S.D.) introduced SB 898. This bill prohibits the Internal Revenue Service from auditing a taxpayer based on the MCCs.

So far, seven states have joined the resistance.

On March 29, West Virginia Gov. Jim Justice approved House Bill 2004. In summary, the measure will “prevent the use of payment card processing systems for surveillance of Second Amendment activity and discriminatory conduct.” The bill would also preclude financial institutions that violate this law from qualification in bidding on state contracts.

On April 6, Idaho Gov. Brad Little signed House Bill 295 into law, also prohibiting financial institutions from using MCCs to identify or track firearms purchases.

On April 16, Mississippi Gov. Tate Reeves approved HB1110. In addition to prohibiting the use of MCCs to identify or track firearms purchases in Mississippi, the measure prohibits state governmental agencies as well as public or private individuals from keeping any record or list of privately owned firearms or their owners. The legislation also warns that data collected from this MCC would almost inevitably end up in some federal government databases.

On April 29, North Dakota Gov. Doug Burgum signed HB1487 (pdf).

On May 12, Florida Gov. Ron DeSantis approved CS/SB 214.

On May 19, Montana Gov. Greg Gianforte signed SB359 into law.

On June 10, Texas Gov. Greg Abbott signed HB2837, which will become effective on Sept. 1. The measure will prohibit financial institutions operating in Texas from requiring or assigning a firearms code, defined as “any merchant category code approved by the International Organization for Standardization for a firearms retailer, including Merchant Category Code 5723.”

On July 13, California’s legislators introduced a gutted and amended version of Assembly Bill 1587, originally introduced on Feb. 17 as a measure about the state’s Health and Safety Code regarding multifamily housing, which now requires credit card issuers to use the MCC unique to retailers of firearms and ammunition.

By Patricia Tolson

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