The House of Representatives has passed the Protecting Privacy in Purchases Act, H.R. 1181, introduced by Rep. Riley Moore. The bill aims to stop banks and payment networks from using a special code to identify firearm and ammunition purchases, while also blocking states from creating similar tracking systems.
What is a merchant category code?
Every business that accepts credit cards is assigned a merchant category code, or MCC. The code helps payment networks identify the type of business involved in a transaction.
Restaurants, grocery stores, gas stations, and other retailers all have their own categories. These codes can be used for basic payment processing, fraud checks, or rewards programs. For example, a credit card company may use them to offer points for gas or grocery purchases.
The concern began when lawmakers and anti-gun groups pushed for a separate code specifically for firearm and ammunition retailers. That would allow a card network to identify purchases made at gun stores without needing to know the exact item purchased.
On paper, it might look like a minor bookkeeping change. In practice, critics argue it could make it much easier to track who shops at firearm retailers and how often they do so.
Why gun owners are concerned
Federal law prohibits the government from creating a national registry of gun owners. Opponents of firearm-specific merchant codes argue that the codes could provide a workaround.
Rather than having the government directly create a list, banks and payment companies could collect the information first. That data could potentially be requested, shared, or turned over to government agencies later.
The concern is not only theoretical. The video points to an incident during the Biden administration in which Bank of America provided private financial information to the FBI. The records reportedly involved customers who made purchases in the Washington, D.C., area around January 5 and 6, as well as people whose transactions included gun-related purchases.
For gun-rights advocates, that example shows how financial information can be used beyond its original purpose. A purchase that begins as a private banking transaction could become part of a government investigation without a court order or warrant, according to the concerns raised by GOA.
What H.R. 1181 would do
The Protecting Privacy in Purchases Act is designed to address the issue in two main ways:
- Block firearm-specific codes: Payment networks and retailers would be prevented from creating a special category for gun and ammunition stores.
- Stop state and local mandates: States and local governments would not be allowed to require banks or payment companies to create or use such a code.
That second section matters because some states have considered, or already passed, laws involving firearm-related payment tracking. Without a federal restriction, supporters say the system could return through state-level requirements even if the major payment networks stopped using it voluntarily.
The bill is meant to close both paths. It would prevent a federal tracking system and limit attempts by individual states to establish one.
A fight over financial privacy
Supporters of H.R. 1181 see it as more than a debate about credit card labels. They view it as a fight over whether lawful gun owners should be singled out because of what they buy.
The argument is simple: if the government cannot legally create a national gun registry, private companies should not be encouraged to build a similar record that could later reach government hands.
This does not mean banks would be unable to investigate fraud or respond to valid legal requests. Instead, the bill focuses on preventing a broad system that automatically identifies customers based only on purchases made at firearm-related businesses.
Lawmakers face a recorded vote
Gun Owners of America has said it will score the vote on H.R. 1181. That means lawmakers will receive a public grade based on whether they support or oppose the bill.
For GOA, voting against the measure would count as an anti-gun vote because the organization considers purchase privacy part of the broader Second Amendment fight. The group argues that protecting firearm ownership also means protecting lawful buyers from unnecessary monitoring.
The House passage is being presented as an important step, but the debate is not over. The bill must continue through the legislative process before it can become law. For now, supporters are focused on keeping firearm-specific merchant codes from becoming another way to track gun owners.
Lance Rankin is the owner and Chief Gunsmith of Western Sport, a family-run Type 07 FFL and Class 3/SOT dealer in Roanoke, Texas, serving shooters since 2007. Born and raised in Texas with over 50 years of experience handling firearms, Lance purchased Western Sport in 2017 and turned his lifelong passion into his profession. He specializes in AR-15 and AR-10 platform rifles, manufactures Western Sport’s own AR-15 line under the Rankin Industries brand, and runs the shop’s in-house Cerakote coating operation. When he’s not behind the counter or the workbench, you’ll find him on his ranch deep into the night, hunting coyotes with an AR-15 and thermal optics. Lance holds an MBA and personally shoots and tests the products Western Sport sells.
