HR 1224119th CongressIn Committee

Protecting the Second Amendment in Financial Services Act

Introduced: Feb 12, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

H.R. 1224, the Protecting the Second Amendment in Financial Services Act, would amend the Truth in Lending Act to bar the use of a merchant category code (MCC) that separately identifies firearms merchants or ammunition merchants. In practical terms, financial institutions, payment networks, and other entities involved in processing credit card transactions would not be allowed to assign a distinct MCC that singles out gun shops or ammo sellers. The aim appears to be to prevent targeted labeling of firearm-related merchants within the card-payment system. The bill defines who counts as a “covered entity” for this prohibition (including banks, acquirers, payment card networks, issuers, and others who participate in authorizing, clearing, or settling card transactions) and places the provision within the Truth in Lending Act. It is introduced in the 119th Congress, with sponsors named in the House and referred to the Committee on Financial Services for consideration.

Key Points

1Prohibition on MCCs that separately identify firearms merchants or ammunition merchants.
2Covered entities include banks, acquirers, payment card networks, issuers, and others participating in the card transaction process.
3The provision is added as a new subsection (q) to Section 127 of the Truth in Lending Act.
4The bill’s short title is the “Protecting the Second Amendment in Financial Services Act.”
5Introduced in the House on February 12, 2025, with multiple sponsors and referred to the Committee on Financial Services.

Impact Areas

Primary group/area affected- Firearms retailers and ammunition merchants who process card transactions, along with the financial institutions and payment networks that handle those transactions (banks, acquirers, networks, issuers).Secondary group/area affected- Consumers who purchase firearms or ammunition using credit cards, who may experience changes in how transactions are categorized in statements or data feeds.- Financial services compliance teams and risk-management departments, which would need to adjust systems and labeling to avoid separate firearm-related MCCs.Additional impacts- Data analytics and enforcement: reduced granularity for firearm purchase data within card networks, potentially affecting monitoring, reporting, or research that relies on MCC-based categorization.- Regulatory and policy considerations: potential interactions with existing state or federal gun laws, consumer privacy concerns, or data-sharing practices within the payments ecosystem.MCCs are a technical labeling system used by payment networks to categorize merchants for processing and reporting. This bill would effectively prevent a distinct label for firearm-related merchants, which could influence how firearm purchases are tracked in financial data.The description here reflects the bill’s text as introduced; actual implementation would depend on final legislative action and rulemaking by relevant agencies.

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