Kentucky Bans Merchant Code Tracking of Guns, but Federal Showdown Is Coming: Lawyer
Published on July 22, 2024
Kentucky is the latest state to ban financial institutions from using the merchant category code on credit card transactions to track firearm sales after HB357 went into effect on July 15. However, with gun safety activists pushing the plan in other states and the U.S. Congress, one Texas lawyer predicts the conflict will have to be reconciled in Washington. At issue is a plan to use merchant category codes on credit cards to flag purchases at gun stores. A merchant category code is a four-digit number assigned to a business based on its type. The codes are generally applied to broad categories, such as clothing or hardware. Guns have been listed as durable goods or outdoor sports equipment....