Visa, Mastercard, and Discover suspended their work on a code that would track gun purchases.
The payment processors had previously committed to implementing the code, suggested by the International Organization for Standardization, which was aimed at helping to curb gun violence. The three decided to suspend the project this week, according to Bloomberg and confirmed in statements from the companies, after previously expressing growing skepticism over the idea.
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“There are bills advancing in several states related to the use of this new code. If passed, the result will be an inconsistency in how this ISO standard could be applied by merchants, issuers, acquirers, and networks,” a spokesman for Mastercard told the outlet. “It’s for that reason that we have decided to pause work on the implementation of the firearms-specific [merchant category code].”
Discover gave its reason for abandoning the code as “to continue alignment and interoperability with the industry.”
“Visa’s mission is to facilitate secure and reliable global commerce in compliance with applicable laws,” a Visa spokeswoman said in a statement. “Multiple U.S. states are considering legislation to prohibit or restrict the use of the new merchant category code (MCC) for gun and ammunition stores. There is now significant confusion and legal uncertainty in the payments ecosystem, and the state actions disrupt the intent of global standards. Accordingly, Visa is pausing implementation of the MCC.”
Aside from being criticized by Second Amendment activists, the payment networks expressed concern over the fact that a distinction couldn’t be made between the purchase of different types of weapons, such as pistols or assault rifles. Republican lawmakers threatened to sue the credit card companies, with some introducing legislation aimed at banning the practice in Florida and Mississippi.
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Republican Montana Attorney General Austin Knudsen, who led a 24-state coalition protesting the MCC, praised the decision but urged further action.
“Visa, Mastercard, and Discover came to the correct conclusion. However, they shouldn’t just ‘pause’ their implementation of this plan—they should end it definitively,” Knudsen said in a statement. “American Express should do the same. This measure will do nothing to improve public safety while invading consumer privacy and inviting coordination between corporations and government agencies to erode Americans’ fundamental right to keep and bear arms.”
