Gun shops to get unique MCC

An international standards group approved a new merchant category code (MCC) for gun shops—a move that has been hailed by gun control advocates and drawn the ire of gun advocates.

Right now, gun shops are not treated as a separate category of merchants, unlike, for example grocery stores and cigar stores. Typically they are categorized as sellers of durable goods or specialty retailers.

The new MCC applies only to merchants whose primary business is sales of firearms and ammunition. Big box retailers that also sell guns are not affected.

Proponents have said the new MCC will help stem the tide of gun violence. A decision regarding the new MCC was announced last week by the International Organizations for Standardization, (ISO). Visa, Mastercard and American Express have all said they will comply.

"Following ISO's decision to establish a new merchant category code, Visa will proceed with next steps, while ensuring we protect all legal commerce on the Visa network in accordance with our long-standing rules," Visa said in a statement.

Mastercard issued a similar statement, adding, "This is exactly how we would manage the process for any other appropriate MCC, like a bicycle shop or sporting goods store."

Help in addressing gun violence

New York-based Amalgamated Bank applied to the ISO for the new MCC. The bank significant support, including congressional Democrats, and the attorneys general of New York and California. Two of the country's largest public pension funds, in New York and California, have also been lobbying for the move. Those pension funds, combined, hold billions of dollars worth of stock in Visa, Mastercard and AmEx.

"Since 2009, the United States has suffered 279 mass shooting causing 1,576 deaths. The shooters in at least five major mass shooting between 2007 and 2020 financed their massacres using credit cards," a group of lawmakers led by Senator Elizabeth Warren, noted in a letter earlier this month to AmEx.

In 2017, for example, the gunman who massacred 60 people on the Las Vegas strip used credit cards to rack up $95,000 in gun and ammunition purchases, the letter stated.

A new MCC would be a "first step" toward helping financial institutions monitor suspicious activity, the lawmakers wrote, "including straw purchases and unlawful bulk purchases that could be used in the commission of domestic terrorist acts or gun trafficking schemes." California Attorney General Rob Bonta concurred. "We must use every tool in our toolbox to combat the deadly threat of gun violence," he said. "That means everyone in this country, including credit card companies, has an important part to play in our fight to save lives and combat senseless violence."

Following the ISO decision, New York Attorney General Letita James said, "Labeling gun and ammunition sales is a responsible, common-sense way to help protect Americans."

Gun rights advocates, however, have balked at the decision. "The decision to crate a firearm specific code is nothing more than a capitulation to anti-gun politicians and activists bent on eroding the rights of law-abiding Americans one transaction at time," Lars Dalseide, a spokesman for the National Rifle Association, told the Associated Press.

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.