An organization that sets standards for business transactions has decided to create a special code for gun dealers to use when processing credit and debit card transactions. It’s a move long sought after by gun safety advocates who claim it helps law enforcement uncover questionable purchases.
A decision by this group, the International Organization for Standardization (ISO), could spark political uproar in Washington and across the country, with debates among banks and businesses about how or even whether they should follow the new standard. can also cause
ISO did not respond to a request for comment. But on Friday, Amalgamated Bank, which spearheaded the effort, received a letter confirming a decision confirmed by The New York Times.
“This approval is an important step in improving coordination with law enforcement and preventing gun violence,” said a Massachusetts Democrat who has been vocal on the issue. Senator Elizabeth Warren said. “For this new merchant code to be most effective, it should be enhanced and used by all financial institutions and payment systems.”
A 2018 series of articles in The Times revealed that the guns used in most of America’s deadliest mass shootings were purchased legally with credit cards. No purchases were flagged by credit card companies or banks.
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Nearly every US retail category has a code associated with each credit card transaction. For example, he has one code for a hair salon and another for a movie theater. But until now, there was no code for gun stores, so these transactions were often indistinguishable within the financial system from those at retail stores selling fishing rods and tents.
Gun rights advocates say they can block gun trades or track gun owners by giving gun dealers specific codes, called merchant category codes. I’m here.
After the terrorist attacks of September 11, 2001, Congress passed legislation aimed at preventing domestic terrorism. The law typically requires banks to flag suspicious transactions. But the bank doesn’t know which items were purchased with the credit card or if the retailer is a gun dealer. Gun safety advocates hope the new commercial law will change this.
Most credit card companies and banks either oppose the new code or remain silent on the issue. For several years, Visa and Mastercard have opposed adding codes. Behind the scenes, some company officials supported the code but publicly rejected it for fear of offending politicians who support gun rights.
Amalgamated Bank submitted the code to ISO this spring, claiming it needed to identify credit risk. I also applied for a code earlier this year, but was denied.
After Amalgamated reapplied for the code, it gained support from political leaders across the country. Dozens of senators and congressmen have sent letters to credit card companies supporting the proposal. Several pension funds have asked to disclose whether card companies supported or tried to reject the code.
“We all have to do our part to stop gun violence,” said Priscilla Sims Brown, president and chief executive officer of Amalgamated Bank, in a statement Friday. “The new code allows for full compliance with our obligation to report suspicious activity and illegal gun sales to authorities without blocking or impeding legal gun sales.”
However, it is unknown if the new code will be used.
In a letter to Senator Warren and dozens of other members of Congress on Friday, Visa’s senior vice president, Robert B. Thomson III, said the company is not a member of ISO and that the company “does not follow ISO standards and processes. I have no authority over
“We believe that asking payment networks to act as moral authorities by deciding which legitimate goods can and cannot be purchased sets a dangerous precedent,” he wrote. .
A Visa spokeswoman did not respond to an email requesting comment.
Mastercard spokesman Seth Eisen claimed the company believes reducing gun violence should be the job of Congress. He said the company will “focus” on how gun sellers and banks will implement the new code.
“This is exactly how we manage the processes of any other proper MCC, such as a bike shop or a sporting goods store,” says Eisen.