AG CAMPBELL
CO-LEADS COALITION URGING MAJOR CREDIT CARD COMPANIES TO FULFILL THEIR PLEDGE
TO USE MERCHANT CODE FOR GUN SALES BY GUN DEALERS
BOSTON – Attorney General
Andrea Joy Campbell has co-led a coalition of 14 attorneys general in
denouncing the decision of four of the world’s largest credit card companies —
Visa, American Express, Mastercard and Discover — to walk back their commitment
to implement a new merchant code for gun sales that would help prevent mass
shootings and curb gun violence.
In September, Visa, American Express and
MasterCard publicly announced plans to add a new merchant code for gun
retailers. The creation of the new code had been approved earlier that month by
the Switzerland-based International Organization for Standardization — the
international body that sets uniform codes used around the world to classify
merchants based on the type of business, trade, or service supplied — to allow
financial institutions to better detect and report suspicious activities
related to the purchase of firearms and ammunition at standalone gun retail
stores. In February 2023, Discover announced that it too would begin using the
new code.
However, last week, all four companies
announced they were no longer implementing the code, citing legislation in
several states seeking to bar or limit the use of the voluntary code.
In a letter sent to the chief
executives of Visa, American Express, Mastercard and Discover, the coalition,
co-led by AG Campbell, urged the companies not to succumb to this political
pressure and to apply the code as promised.
“As we continue to experience the
aftermath and trauma of senseless gun violence in our communities, we must
utilize all available resources to stop these tragedies,” said AG Campbell. “My
colleagues and I urge these credit companies not to cave to political pressure
and to move forward with what will be an important resource in detecting,
identifying and stopping potential threats to publicsafety.”
The new code creates a unique merchant
category for gun stores, which previously were categorized as “sporting goods
stores” or “general merchandise.” The code will have no bearing on an
individual’s ability to lawfully purchase firearms, the letter states. It will,
however, help financial institutions and law enforcement agencies identify
unlawful transactions, including the purchase of prohibited firearms such as
ghost guns or assault weapons; sales to straw buyers engaged in trafficking;
and transactions involving high-risk purchasers trying to avoid detection in
amassing an arsenal that could be used for mass shootings.
In the letter, the attorneys
general remind the credit card companies that the newly created code for gun
stores is not a novel development, as the companies have already used codes in
categorizing basic transactions for everyday items like flowers and groceries,
and already have hundreds of retailer codes for everything from stamp shops and
wig stores to car rental agencies and various government services.
The coalition also points out that
enabling financial institutions to detect and flag threatening patterns and
potential criminal activity for law enforcement is nothing new, as financial
institutions have been doing it for decades. Federal law requires Suspicious
Activity Reports when banks “detect a known or suspected violation of Federal
law or a suspicious transaction related to a money laundering activity or a
violation of the Bank Secrecy Act.” Additionally, state and federal law enforcement
agencies often request evidence relating to firearms or other investigations,
but the ability of financial institutions or law enforcement to take steps
against criminal gun purchases is hampered by the lack of a dedicated code for
firearm and ammunition retailers. Utilizing a special merchant code can assist
state and federal law enforcement in identifying potential concerns related to
firearm purchases.
The attorneys general urged the companies
to stand by their original pledge to adopt the code and their commitment to
ensure public safety. In their letter, the coalition argues that if the
companies backtrack now on their pledge, and succumb to political pressure,
this could invite further interference in lawful, protected business practices.
The letter can be found in full here.
AG Campbell is committed to combating gun
violence in Massachusetts and across the country. In January, the AG’s Office joined a multistate
coalition of attorneys general in filing an amicus brief in support of New
York’s law prohibiting the carrying of firearms in place of worship and
religious observation. In February, AG Campbell also filed briefs in two
ongoing legal cases, Granata v. Campbell, and National Association
for Gun Rights v. Campbell, to defend and uphold common sense Massachusetts
laws and regulations intended to protect the people of Massachusetts from gun
violence.
The letter was co-led by AG
Campbell, AG Matthew J. Platkin of New Jersey, AG Brian Schwalb of Washington
D.C. and AG Kathy Jennings of Delaware, and joined by the attorneys general of
California, Connecticut, Hawaii, Illinois, Maryland, Minnesota, New York,
Nevada, Oregon, and Rhode Island, who have all signed onto the letter
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