Utah Passes Bill Prohibiting Merchant Firearms Codes

In February, Utah lawmakers began working on a bill that would prohibit credit card companies from flagging firearms-related purchases. Now, that law has officially passed, making Utah the 7th state with this type of regulation on the books.

Utah House Bill 406: Prohibiting Firearms Merchant Category Code

Late last month, Utah’s Governor Spencer Cox signed a bill prohibiting credit card companies from using Merchant Category Codes (MCCs) to categorize gun purchases. Any credit card company that uses the internationally-recognized MCC for firearms will be barred from doing business in Utah. The law will go into effect May 1, 2024.

Credit cards use these codes to define purchase activity. For example, certain codes apply to food-related transactions, while others categorize motor vehicle purchases. Credit card companies currently classify gun-related transactions under the “sporting goods” MCC.

The bill came as a response to other states, notably California, passing a law that would require credit card companies to institute MCCs for gun-related sales.

Final Thoughts

MCCs for gun purchases can be considered a form of backdoor gun registration, which I’ve previously written about. It’s only a matter of time before authorities abuse databases that can track firearms-related purchases to target gun owners.

This is another development in what’s sure to become a large issue in the national firearms debate. So far, Utah and six other states – Texas, Idaho, North Dakota, Montana, and Florida – have passed laws prohibiting gun-related MCCs. This has been enough to make credit card companies second-guess the policy, leading to a pause on its implementation.

According to Robert B. Thompson III, a senior VP at Visa, "given the conflicting state laws on this topic and the likelihood that other states will enact legislation to either restrict or mandate the code, our implementation pause remains in effect.”

In other words, if credit card companies realize they’ll lose more money by implementing these codes than by not implementing them, they won’t begin tracking gun purchases.This is a great development not only for gun owners in Utah, but nationwide. Way to go, Beehive State.