GSA SmartPay Contracts Barred for Payment Systems Coding Gun Retailers: New Bill Limits Options

The "No SmartPay for Anti-2A Companies Act" directly prohibits the General Services Administration (GSA) from awarding SmartPay program contracts to any commercial payment system that uses a payment processor assigning merchant category codes (MCCs) to gun retailers. Essentially, if a payment system flags gun stores with a specific code, they're out of the running for these government contracts. The bill, however, grandfathers in any contracts awarded before this Act's passage (SEC. 2).

Locking Out Gun Store Codes

This law targets the GSA's SmartPay system, which provides charge cards to federal agencies for official purchases. The core change is straightforward: payment systems that use processors who code gun retailers with a specific MCC will be ineligible for new SmartPay contracts. The immediate effect is a restriction on which payment providers the government can use, specifically excluding those that categorize firearm retailers. For example, if "Acme Payments" uses a system that tags "Bob's Gun Shop" with a gun retailer MCC, Acme Payments can't get a new SmartPay contract. If a small business owner uses a payment system that categorizes their sporting goods store that sells hunting rifles, and that payment system wants to provide services to a government agency, they're out of luck.

Real-World Impact and Potential Challenges

This bill's real-world impact is that it could limit the number of payment processors that can be used by the federal government. If fewer companies are eligible, competition might decrease, potentially leading to higher costs or less efficient services for government agencies. The bill defines a "merchant category code for gun retailers", and the broadness or narrowness of this definition in practice will determine how many businesses are actually affected. The bill raises questions about the government using contracting to achieve policy goals. While it might reassure those concerned about financial tracking of gun sales, it sets a precedent for excluding businesses based on their industry classification. It's a bit like saying the government won't use a certain brand of coffee machine because the coffee shop down the street sells pastries they don't like – it connects seemingly unrelated things.

Bigger Picture

This bill fits into a larger debate about how financial systems and government purchasing power intersect with Second Amendment rights. The text does not mention any existing laws, but the move to categorize gun retailers with a unique MCC has been a point of contention. This legislation essentially blocks the practical effect of that categorization within the GSA's SmartPay system. It also raises the question of whether similar restrictions could be applied to other industries in the future, depending on the political climate. The bill's potential to create a chilling effect on businesses that want to work with the government is a significant point to watch.