Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Payments topic
No spam. Unsubscribe anytime.
Assembly advances chapter amendment to create merchant category code for firearm merchants; card networks express concern
Summary
Lawmakers approved a chapter amendment that directs payment networks to adopt a merchant category code for firearm merchants; supporters called it a technical clarification, while critics and payment networks warned of implementation disruption and privacy concerns.
The Assembly voted to advance a chapter amendment directing payment card networks to use merchant category codes (MCC) to identify purchases from firearm merchants. Sponsors described the change as a technical clarification that creates MCCs for entities selling firearms and ammunition; the amendment removes a redundant 'dealer of ammunition' definition because the statutory definition of 'dealer of firearms' already covers ammunition.
Members pressing the sponsor asked how MCCs are created and whether card networks and independent sales organizations (ISOs) would cooperate. The sponsor explained that MCCs are based on international standards and that payment networks may adapt codes for implementation. Several members raised privacy and enforcement concerns and cited letters from Visa and Mastercard indicating they had paused implementation or reaffirmed principles protecting lawful commerce and customer privacy. One member said Visa informed legislators that multiple states' efforts had "paused implementation of any MCC at this time." Supporters said the change merely clarifies language and does not alter authorities' powers; opponents warned it could create de facto databases of purchases and raise constitutional questions.
The recorded vote was Ayes 100, Nos 48 and the bill advanced. Floor remarks show both procedural and substantive questions remain about implementation, vendor cooperation and who could access aggregated MCC data.
