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Colorado Governor Signs Bill Mandating Merchant Category Codes By Mark Chesnut

Gov. Jared Polis

While several states have passed laws this legislative session protecting gun owner privacy by prohibiting the use of firearm-specific merchant category codes by payment processors, Colorado has done just the opposite.

On Wednesday, Democrat Gov. Jared Polis signed SB24-066 into law, basically creating backdoor gun registration in the state by requiring use of such codes.

At issue is a new Merchant Category Code (MCC) for gun purchases adopted by the International Organization for Standardization a little over a year ago. MCCs are used by payment processors (like Visa and Mastercard) and other financial services companies to categorize transactions.

Prior to the creation of the specific code for guns, firearms retailers fell under the MCC for sporting goods stores or miscellaneous retail. If the new code is used, credit card companies and other payment processors can tell the purchases were firearms.

This session, legislators in Utah, Kentucky, Iowa, Tennessee, Georgia, Wisconsin and Indiana passed laws prohibiting use of the code. A similar bill is still under consideration by lawmakers in New Hampshire.

State Sen. Tom Sullivan, sponsor of the measure in the Colorado Senate, said the bill is a life-saving measure.

“Credit cards have been repeatedly used to finance mass shootings, and merchant codes would have allowed the credit card companies to recognize his alarming pattern of behavior and refer it to law enforcement,” Sullivan said. “This bill will give us more tools to protect people, and make it easier to stop illegal firearms-related activity like straw purchases before disaster strikes.”

Interestingly, efforts are underway in Congress to outlaw the use of firearm-specific merchant category codes. Republican Reps. Elise Stefanik of New York, Andy Barr of Kentucky and Richard Hudson of North Carolina have filed a bill that would prohibit use of the four-digit code that’s been created to identify merchants selling firearms.

“The tracking of gun purchases is a violation and infringement on the Constitutional rights of law-abiding Americans which is why I am proud to introduce the Protecting Privacy in Purchases Act to prohibit radical gun grabbing politicians from tracking lawful gun purchases,” Rep. Stefanik said in a press release announcing the measure. “I share the concern of law-abiding gun owners across our nation that have voiced their fear that such tactics will work to serve the radical Left’s anti-gun agenda. I will always stand up for our Second Amendment rights as Americans and provide a critical check to any entity attempting to encroach on our liberties.”

The Colorado law will take effect 90 days after the adjournment of this session of the Colorado legislature.

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