New Federal Bill Blocks Special Tracking Codes for Gun Store Purchases: Privacy Shield or Public Safety Risk?

The "Protecting Privacy in Purchases Act" is a new federal law that stops credit card companies from using special codes to track purchases at gun stores. Instead of having a unique code, firearm retailers will be lumped in with general merchandise or sporting goods stores. This means no separate tracking of gun and ammunition sales through payment networks.

Keeping Tabs

This bill is all about preventing payment card networks (think Visa, Mastercard, etc.) from flagging firearm retailers with their own merchant category code (MCC). Right now, different types of businesses have different MCCs – it's how credit card companies categorize transactions. This law says gun stores can't be singled out. Section 2 of the bill spells this out clearly, prohibiting any requirement for a separate code.

• Real-World Impact: Imagine you're buying camping gear and a new rifle in the same transaction. Under this law, the credit card company won't be able to easily distinguish the firearm purchase from the rest of your outdoor supplies.

Who's In Charge?

The Attorney General is responsible for enforcing this law. They'll set up a system for handling complaints about violations, investigate those complaints, and issue warnings to companies that break the rules (Sec. 2). If a payment card network doesn't fix the problem within 30 days of getting a notice, the Attorney General can take them to federal court.

• Heads-up: This bill does NOT allow individuals to sue credit card companies directly. It's all on the Attorney General to enforce.

States Can't Interfere

This is a big one: The law overrides any state or local rules about merchant category codes for firearm retailers (Sec. 2). So, even if a state wants to track gun sales through these codes, this federal law shuts that down.

• Example: If California had a law requiring a special MCC for gun stores, that law would be invalid under this Act.

The Big Picture

This law is framed as protecting the privacy of gun owners. It prevents credit card companies from creating a de facto registry of firearm purchases. However, it also limits the ability to track potentially suspicious buying patterns, which could be a red flag for illegal activity. The bill defines key terms like "firearm," "ammunition," and "payment card network" to make it clear who and what is covered (Sec. 2). The Attorney General has to report to Congress annually on how the law is working (Sec. 2). This report will have to cover any investigations, summaries of any problems, and whether the law is doing what it is supposed to do.

This new law is a direct response to concerns about financial surveillance and potential discrimination against gun owners. But it will be important to keep a close eye on whether it makes it harder to spot and prevent illegal gun trafficking or other firearm-related crimes. This is a bill where we must pay attention to the practical consequences of what happens when it is in place.