Delaware committee releases bill to require merchant category codes for firearm sales

The Delaware House Judiciary Committee on Oct. 12 voted to release House Bill 45, a measure that would require retail sellers of firearms and ammunition to be assigned—and for payment processors to use—a merchant category code (MCC) identifying those sales, proponents said. Committee members voted to release the bill from committee, with the chair announcing “6 votes, to release on House Bill 45.”

Proponents said the MCC is an existing four-digit industry code that banks and payment networks can use, alongside other transaction data, to detect patterns that may indicate trafficking or preparations for mass violence. Hudson Munoz, executive director of Guns Down America, testified that “merchant category codes are 4 digit numbers that banks assign to retailers” and that, after the International Organization for Standardization established an MCC for gun and ammunition retailers in 2022, banks could combine that code with transaction amount, frequency and location to identify suspicious patterns.

The bill’s sponsor and supporters said the tool is not a registry and would not single out ordinary purchasers. Liddy Ballard, identified in testimony as a witness supporting the bill, told the committee, “The merchant codes are not a registry. They don't act as a registry.”…