House passes bill barring firearms-specific credit card codes, 221 to 201

The House passed a bill on Tuesday that would bar credit card networks and banks from using a payment code that singles out firearms retailers. The vote on H.R. 1181, the Protecting Privacy in Purchases Act, was 221 to 201.

What the bill does

The bill prohibits payment card networks and covered financial entities from "requiring the use of or assigning merchant category codes that distinguish a firearms retailer from general-merchandise retailer or sporting-goods retailer," according to the rule the House adopted for the measure. Merchant category codes, or MCCs, are the four-digit labels card networks attach to a transaction to identify the type of business where a purchase is made. Gun stores are currently folded into broader categories such as sporting goods rather than carrying a firearms-specific code.

If enacted, the bill would keep networks and banks from applying a standalone firearms code or requiring merchants to use one. It does not change what a buyer can purchase or the federal background check run at the point of sale.

The vote

According to the House roll call, the measure passed 221 to 201 at 5:32 p.m. on July 14 on a question of passage. The vote fell mostly along party lines. Republicans voted 215 to 1 in favor, Democrats voted 200 to 5 against, and the chamber's one independent voted yes. Nine members did not vote.

How the code became an issue

In September 2022, the International Organization for Standardization approved a new merchant category code for gun and ammunition retailers, and it was published in early 2023. In March 2023, Visa, Mastercard, American Express and Discover paused plans to put the code into use, citing a growing patchwork of conflicting state laws and the legal and political fight around it.

States have gone in opposite directions. Texas, Florida, Montana, West Virginia, Mississippi, Idaho and North Dakota are among those that have barred requiring the firearms code. California did the reverse: its 2023 law, AB 1587, requires banks and card companies to apply the code and took effect January 1, 2024. H.R. 1181 would replace that split with a single federal rule against the code.

What each side says

Supporters, led by sponsor Rep. Riley Moore (R-W.Va.) with Reps. Richard Hudson (R-N.C.) and Andy Barr (R-Ky.), say a firearms-specific code would let financial companies track lawful gun and ammunition purchases. In introducing the bill, the sponsors described the code as "unconstitutional tracking of lawful gun purchases" and a step toward a de facto registry of gun owners. The National Shooting Sports Foundation, the firearms industry's trade group, backs the measure.

Opponents, who include most Democrats and gun-safety groups, say the code was created to help banks flag unusual firearm and ammunition purchases and file suspicious-activity reports, and that barring it removes a tool that could help detect planning for a mass shooting. They argue the bill blocks financial institutions from applying standard fraud and anti-money-laundering monitoring to one category of goods.

What happens next

The bill goes to the Senate, where a companion, S. 1715, has been introduced but has not reached the floor. It would need to pass the Senate and be signed by the president to become law.