Earlier this month, the International Organisation for Standardisation approved a new merchant category code, or MCC, that banks will use when processing transactions for gun and ammunition stores. Gun-control advocates were quick to celebrate the move, arguing it would help banks flag suspicious activity at these retailers.
The problem, Visa says, is when it processes transactions for any merchant it doesn’t have access to data showing what products consumers are actually buying. That means the network and its banking partners would have no idea if a consumer is buying an automatic rifle or safety equipment at these stores.
“We have no visibility into what items a consumer is purchasing – this is true irrespective of which MCC applies to a merchant,” Visa said in a statement on its website. Many are advocating for the use of MCCs to track gun sales as a potential tool in combating gun violence. “That’s not what merchant codes are designed for, nor should they be.”
In recent years, Visa and its rivals have faced repeated criticism over how their networks are used for commerce. The company, for instance, has stopped allowing use of its cards on Pornhub and other sites owned by MindGeek that permit user-generated adult content. The move came after a New York Times column in 2020 accused Pornhub of distributing videos depicting child abuse and non-consensual violence.
“We do not believe private companies should serve as moral arbiters,” Visa said. “Asking private companies to decide what legal products or services can or cannot be bought and from what store sets a dangerous precedent. Further, it would be an invasion of consumers’ privacy for banks and payment networks to know each of our most personal purchasing habits. Visa is firmly against this.”
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