American Express, Mastercard and Visa Urged to Support Creating a New “Merchant Category Code” That Would Identify Purchases Made at Gun and Ammunition Stores and Make It Easier to Spot and Trace Suspicious Purchases
New York City Mayor Eric Adams, New York City Comptroller Brad Lander, trustees of the New York City Employees’ Retirement System, Teachers’ Retirement System and Board of Education Retirement System, and elected leaders today called on American Express, MasterCard and Visa, three of the world’s largest credit card companies, to support a proposal to establish a merchant category code (MCC) for gun and ammunition stores. The creation of a new code would help financial institutions detect and report suspicious activity, such as unusually large purchases of firearms or ammunition, or purchases from multiple stores, that may be used for criminal purposes.
Credit card companies use a four-digit merchant category code to classify businesses by the types of goods and services sold. Merchant category codes are set by the International Organization on Standardization (ISO). Unique merchant category codes exist for grocery stores, sporting goods stores, bicycle shops, and many other retailers — but not for gun and ammunition stores. Proposals have been brought before the ISO to create a merchant category code for gun retailers, but American Express, MasterCard, and Visa have not supported the proposal.
The press conference, which comes ahead of a fall meeting of the ISO, highlighted the introduction of shareholder proposals by the three pension funds at American Express and Mastercard and requested transparency on the decisions made regarding merchant category codes for gun and ammunition stores. The three pension funds also sent a letter with the California State Teachers' Retirement System (CalSTRS) to American Express, Mastercard, and Visa. The three pension funds own 667,200 thousand shares in American Express valued at approximately $92.49 million; 1.1 million shares in MasterCard valued at approximately $347.59 million; and 1.85 million shares in Visa valued at approximately $363.86 million.
This announcement also follows a letter to MasterCard and American Express from 50 New York state legislators, spearheaded by New York State Senator Zellnor Myrie and New York State Assemblymember Chantel Jackson, calling for the creation of this code.
“When it comes to guns falling into the wrong hands, we must find upstream solutions before we’re faced with downstream consequences — because downstream consequences are lost lives,” said Mayor Adams. “When you buy an airline ticket or pay for your groceries, your credit card company has a special code for those retailers. It’s just commonsense that we have the same policies in place for gun and ammunition stores. I’m proud to join Comptroller Lander and our partners at the state level to call for this important policy change.”
“Gun violence continues to ravage our nation and communities across our city. As fiduciaries, we have a responsibility to minimize risks of harm that could negatively impact the companies in our portfolio. Establishing a merchant category code to identify purchases from gun retailers could do just that, by helping to prevent gun crimes and saving lives,” said Comptroller Lander. “Unfortunately, the credit card companies have failed to support this simple, practical, potentially lifesaving tool. The time has come for them to do so.”
“We must fight for public safety through every tool at our disposal: reducing the flow of guns into our communities, working with police to take on crime, and demanding that businesses do their part. Communities could stop paying the price for gun violence if credit card companies did their part to categorize gun purchases and flag suspicious activity to law enforcement agencies. There are categories for nearly every purchase, but none for the multi-billion-dollar gun industry,” said New York State Attorney General Letitia James. “These changes could save lives and go a long way in helping us combat gun violence. I am proud to stand with my partners in government to call on the largest credit card companies to step up and help us protect communities.”
“Credit card companies already use merchant category codes for retailers from utilities to transportation to clothing — it’s past time they also used them to specifically mark gun stores as well,” said New York City Public Advocate Jumaane D. Williams. “As trustees of the New York City Employees’ Retirement System, we have invested in the big three credit card companies. We have a fiscal and moral responsibility to protect New Yorkers' safety and finances by urging these companies to exercise that same responsibility and implement category codes to help detect suspicious purchases at gun and ammunition stores. Every illegal gun was legal at some point, and the usage of these codes would be instrumental in monitoring and tracking those legal gun sales as well as future gun trafficking.”
“A merchant category code for gun stores could save lives by allowing financial institutions like Amalgamated Bank to report sales associated with black market activity and potential domestic terrorism. Creating this code is one step the financial industry can take to keep our communities safe from gun violence. ,” said Maura Keaney, first vice president, Amalgamated Bank. “We applaud New York City pension fund trustees for demanding transparency from MasterCard and American Express. Their failure to act on our proposal only delayed the creation of this potentially life-saving tool and created shareholder risk from their ability to see something, but not say something.”
“Credit card companies have an obligation stop bad actors, including mass shooters and firearm traffickers, from exploiting their systems to buy the firearms and ammunition they need to cause unimaginable harm. I am grateful for the leadership of New York City Comptroller Brad Lander, Mayor Eric Adams and the Pension Trustees in pushing Visa, Mastercard, and American Express to play their part in building safer communities with fewer guns,” said Igor Volsky, founder and executive director, Guns Down America.
“In order for banks to be able to recognize dangerous firearm purchasing trends – like a domestic extremist building up an arsenal — and report them to law enforcement, gun store purchases need a unique identifier,” said John Feinblatt, president, Everytown for Gun Safety. “We’re proud to join with Comptroller Lander and New York City’s pension fund trustees in calling on American Express, Visa, Mastercard, and other major credit card companies to support this new identifier, so we can make sure their products aren’t used to put guns in the wrong hands.”
“If Visa, Mastercard, and American Express created a dedicated code for gun and ammunition purchases, it would be possible to detect and deter illegal gun trafficking, prevent mass shootings, and save lives,” said Adam Skaggs, chief counsel and policy director, Giffords Law Center to Prevent Gun Violence. “Americans should be asking why these companies are blocking progress, and why they are not taking steps to address gun violence. It’s long past due that these companies offer answers.”
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