New York Governor Signs Law to Bring Firearms Industry Into Banking System; Create Mechanism to Detect and Deter Gun Crime

October 9, 2024

NEW YORK — Today, New York Governor Kathy Hochul signed a bill into law requiring payment card networks to use the merchant category code for firearm dealers, following passage by the New York Assembly in July. New York, one of the largest economies in the country, is signaling to the rest of the nation that it’s due time to utilize a code to detect and deter gun crime and the need for the firearm industry to operate by the same rules as the rest of the market. New York follows California and Colorado as the third state to require the code.

Guns Down America Executive Director Hudson Munoz released the following statement:

"Practically every industry has a unique merchant category code: Bookstores, bakeries, wig & toupee shops, record stores, florists, dry cleaners, dating services—but not gun stores. With Gov. Hochul's signature, this new state law allows banks and credit card companies to formally bring the firearms industry into the banking system and creates a mechanism to detect and deter gun crime. Considering how widely these codes apply across industries, the only thing controversial about the gun store merchant code is that it wasn't in place already."

Brady President Kris Brown released the following statement:

“Merchant category codes (MCCs) are applied to nearly every type of business - restaurants, toll roads, and even snowmobile dealers, and are already being used to identify dangerous activity, including human trafficking and fraud. The bill signed here today will ensure that the MCC for gun and ammunition dealers is utilized in the state of New York, providing an additional safeguard to identify suspicious sales patterns that are indicative of either trafficking firearms or accumulating an arsenal to use in a mass shooting. This is an incredible tool to protect New Yorkers before a devastating tragedy occurs. We applaud Governor Kathy Hochul, Senator Myrie, and Assemblymember Solages for their relentless commitment to preventing gun violence.”

Guns Down America and Brady have been pushing for implementation of the gun store merchant category code nationally and in states across the country. Click here to read GDA’s Gun Store Exception report that explored the use of credit cards to commit gun crimes.