A bill passed by the Tennessee General Assembly prevents credit card companies from monitoring and tracking gun purchasers through merchant category codes (MCCs).
HB 2762, also known as the Second Amendment Financial Privacy Act, was sent to Republican Gov. Bill Lee’s desk last week.
“Merchant category codes for firearm purchases are unnecessary and would set a dangerous precedent that violates the privacy of law-abiding citizens,” State Representative Rusty Grills (R-Newbern), the bill’s primary sponsor, told The Tennessee Star Monday. “This is important legislation that will protect gun owners from being surveilled simply for exercising their right to bear arms. I thank my colleagues for joining me in making sure Tennesseans aren’t being intimidated by credit card companies that seek to recklessly diminish our constitutionally-protected freedoms.”
One large credit card company, Citi, openly admits that merchants can use MCCs to restrict purchases.
“Payment brands use merchant category codes (MCCs) to classify merchants and businesses by the type of goods or services provided,” says Citi’s website. “Payment brands, issuers and acquirers can use MCCs to categorize, track and restrict transactions. MCCs can be used for tax reporting, interchange promotion and gathering information about cardholder purchasing behavior.”
In a press release sent after the bill’s passage, Grills assured Tennesseans that the General Assembly “won’t allow banks, businesses and credit card companies to slowly erode our constitutionally-protected freedoms in this state.”
“The Second Amendment Financial Privacy Act also prohibits government entities from keeping a registry of privately-owned firearms or gun owners in Tennessee,” the release said. “Additionally, it would prevent legal purchases at firearm retailers from being denied based solely on the code.”
Violations of the law will be investigated by the Tennessee Attorney General’s office, and a $10,000 fine can be imposed if a company is found to have broken the law.
In 2022, panel of the International Organization for Standardization voted to approve the creation of an MCC for gun retailers, according to Axios.
Visa, Mastercard and American Express then began implementing processes to “better track firearm sales.”
Far-left groups hailed the decision.
“Until today, gun and ammunition stores did not have a unique merchant category code. Now banks and credit card companies can more easily report dangerous and potentially illegal gun purchases to law enforcement,” Mahen Gunaratna, former chief public affairs officer of Everytown for Gun Safety, said on X at the time.
Until today, gun and ammunition stores did not have a unique merchant category code. Now banks and credit card companies can more easily report dangerous and potentially illegal gun purchases to law enforcement.
Thanks to @AmalgamatedBank for pushing for this reform. https://t.co/0JxTvuL324
— Mahen Gunaratna (@GunaRockYa) September 9, 2022
In February, major credit card companies implemented MCC tracking in California in order to comply with a law requiring such tracking, which the state says is designed to “track suspicious gun purchases.”
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Pete D’Abrosca is a reporter at The Tennessee Star and The Star News Network. Follow Pete on Twitter/X.
Photo “Gun Store” by Thayne Tuason (CC4.0).
