[LAUREN TAYLOR]

MAJOR CREDIT CARD COMPANIES ARE GEARING UP TO EQUIP CALIFORNIA FIREARMS RETAILERS WITH A MERCHANT CODE TO TRACK GUN AND AMMO PURCHASES .

THE MOVE COMES FOLLOWING A NEW LAW ALLOWING BANKS TO KEEP TABS ON WHAT LAWMAKERS CALL “SUSPICIOUS” TRANSACTIONS.

MERCHANT CODES ARE NOTHING NEW –
THEY’RE FOUR-DIGIT NUMBERS USED BY CREDIT CARD COMPANIES TO CLASSIFY PURCHASES FROM RETAILERS AND BUSINESSES.

FOR EXAMPLE – ON VALENTINE’S DAY…
IF YOU PURCHASE FLOWERS FROM A FLORAL SHOP OR NURSERY USING A VISA OR MASTERCARD CREDIT CARD – THE MERCHANT CODE WOULD POP UP AS “0-7-8-0” – UNDER LANDSCAPING AND HORTICULTURAL SERVICES.

OR IF YOUR DOG OR CAT GETS SICK AND YOU HAVE TO TAKE THEM TO THE VET –
IF YOU USE YOUR CREDIT CARD FOR THE PURCHASE – THE TRANSACTION WOULD BE CATEGORIZED UNDER MERCHANT CODE “0-7-4-2” – FOR VETERINARY SERVICES.

MERCHANT CODES ARE A WAY TO GATHER INFORMATION ABOUT CUSTOMER PURCHASING BEHAVIOR.

GUN CONTROL ADVOCATES WITH “GUNS DOWN AMERICA” SAY “BANKS AND CREDIT CARD COMPANIES HAVE AN OPPORTUNITY TO STOP GUN VIOLENCE BEFORE IT HAPPENS.”

ACCORDING TO THE ACTIVIST GROUP “CREDIT CARDS HAVE BEEN USED TO FINANCE DOZENS OF GUN CRIMES SINCE 2019” INCLUDING THE PULSE NIGHTCLUB SHOOTING IN ORLANDO.

THE GUNMAN WHO KILLED 49 PEOPLE – USED CREDIT CARDS TO PURCHASE MORE THAN $20,000 WORTH OF GUNS AND AMMUNITION – NEARLY TWO WEEKS BEFORE THE SHOOTING IN JUNE 2016. THE GROUP SAYS LAW ENFORCEMENT OFFICIALS WOULD’VE DEEMED THIS ACTIVITY “SUSPICIOUS” AND MIGHT HAVE HAD THE OPPORTUNITY TO INTERVENE TO PREVENT THE MASS SHOOTING HAD THE PURCHASES BEEN TRACKED.

[HUDSON MUNOZ | EXECUTIVE DIRECTOR, GUNS DOWN AMERICA]
“merchant category codes can be used to create what are called ‘detection scenarios’ which would say ‘hey, something is not right, here take a deeper look. see if there’s a problem and if so, report it out to law enforcement.”

[LAUREN TAYLOR]

VISA, MASTERCARD, DISCOVER, AND AMERICAN EXPRESS FIRST PLANNED TO PROVIDE THE TRACKING CODES NATIONWIDE IN SEPTEMBER 2022.

IN MARCH 2023, THEY PAUSED THEIR EFFORTS AFTER PUSHBACK FROM SECOND AMENDMENT GROUPS.

NOW, AT LEAST SEVEN REPUBLICAN-CONTROLLED STATE LEGISLATURES HAVE BANNED A MERCHANT CODE FOR GUN RETAILERS. SEVERAL OTHERS ARE CONSIDERING IMPLEMENTING SIMILAR BANS

A SPOKESPERSON FOR THE NATIONAL RIFLE ASSOCIATION SAID CREATING A MERCHANT CODE FOR GUN SHOPS “IS NOT ABOUT TRACKING OR PREVENTION OR ANY VIRTUOUS MOTIVATION — IT’S ABOUT CREATING A NATIONAL REGISTRY OF GUN OWNERS.”

OTHER GUN RIGHTS SUPPORTERS EXPRESSED THEY WERE WORRIED BANKS COULD USE THE PURCHASE INFORMATION TO BLOCK OTHER LEGAL PURCHASES.

NOW – NEARLY A YEAR LATER – THEY’RE ON SCHEDULE TO HAVE TRACKING CODES READY WHEN CALIFORNIA’S NEW LAW TAKES EFFECT MAY 1, 2025..