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Committee approves bill to prohibit firearm merchant‑category code usage in Arkansas transactions
Summary
Representatives Ricky Hill and Howard Beatty sponsored HB1509 to prohibit the use of an ISO merchant category code (5723) that identifies firearm and ammunition purchases; sponsors said the rule would protect community banks and consumer privacy, and the committee approved the bill by voice vote.
Representative Howard Beatty and Ricky Hill, District 11, presented House Bill 1509 to prohibit firearm retailers’ electronic transactions from being labeled with a merchant‑category code that specifically identifies firearm or ammunition purchases (ISO code referenced in testimony as 5723).
Sponsors said the code originated from a single out‑of‑state bank and that network payment processors and third‑party merchant service providers can use the code to identify and track firearm and ammunition purchases. Representative Beatty said the bill protects local community banks from liability for coding decisions made by third‑party processors and gives the state attorney general authority to investigate improper use of merchant codes.
Senators asked whether the law would apply to out‑of‑state online transactions and whether merchant codes exist for many industries; sponsors said the bill covers in‑state transactions and targets the firearm‑specific code. Sponsors and committee members discussed privacy concerns, merchant codes, and the potential for third‑party processors to be the proper subject of enforcement. No opponents were recorded. The committee approved the bill on a motion by Sen. McKee, seconded by Sen. Boyd.
