Attorney General Kathy Jennings today co-led a coalition of attorneys general from across the nation in denouncing four of the world’s largest credit card companies for walking back their commitment to implement a new merchant code for gun sales that would help prevent mass shootings and curb gun violence.

“Gun violence has become so endemic in our country that it is now the leading cause of childhood death. None of us should be on the sidelines,” said AG Jennings. “Companies like Visa, Mastercard, American Express, and Discover have the power to make a real impact on our ability to disrupt illegal gun trafficking and gun crime — power that they promised to use a mere six months ago. It’s no surprise that the gun lobby has fought to protect its profits, but it is disheartening and dangerous to see the courage to save lives wither in the face of political pressure.”

In September, three of the credit card giants —Visa, American Express, and MasterCard —publicly announced plans to add a new merchant code for gun retailers to the hundreds already used to categorize merchant sales. The creation of the new code had been approved earlier that month by the International Organization for Standardization to allow financial institutions to better detect and report suspicious activities related to the purchase of firearms and ammunition at standalone gun retail stores. In February 2023, Discover announced that it too would begin using the new code.

But in an abrupt about-face last week, all four companies announced they were putting the brakes on implementing the code, citing extremist legislation in several states seeking to bar or limit the use of the voluntary code.

Today, 14 attorneys general are denouncing that decision.

In a letter sent to the chief executives of Visa, American Express, Mastercard, and Discover today, the attorneys general accused the companies of capitulating to political pressure cloaked in specious legal arguments and amorphous veiled threats from certain state attorneys general.

The new code, narrowly tailored so that it applies only to purchases made at independently-owned gun retail shops, will have no bearing on an individual’s ability to lawfully purchase firearms, the letter states. It will, however, help financial institutions and law enforcement agencies identify individuals engaging in unlawful transactions, including the purchase of prohibited firearms such as ghost guns or assault weapons; straw buyers engaged in trafficking; and high-risk purchasers trying to avoid detection in amassing an arsenal that could be used for mass shootings.

Enabling financial institutions to detect and flag threatening patterns and potential criminal activity for law enforcement is nothing new, as they’ve been doing it for decades, the letter points out.

For instance, federal law requires Suspicious Activity Reports when banks “detect a known or suspected violation of Federal law or a suspicious transaction related to a money laundering activity or a violation of the Bank Secrecy Act,” the letter states. And state and federal law enforcement agencies often request evidence relating to firearms or other investigations. But the ability of financial institutions or law enforcement to take steps against criminal gun purchases is hampered by the lack of a dedicated code for firearm and ammunition retailers, the letter asserts.

Last fall, AG Jennings co-led a coalitionof 11 attorneys general supporting Visa, American Express, and Mastercard’s publicly stated plans to adopt the new merchant code.

In a letter sent to company executives on September 20, 2022, the Attorneys General commended the credit card industry’s then-willingness to step up and do its part to protect communities and eradicate gun violence across the United States.

In today’s letter, the attorneys general urged the companies to stay true to that commitment and not cave under political pressure and unfounded legal threats. To do so would set a precedent that invites further interference in lawful, protected business practices, they said.

“We hope and expect you will reconsider your decision and not abandon your public commitments.  Should you fail to do so, your complicity with ongoing needless gun tragedies will lead us to consider further actions,” the letter concludes.

Today’s letter is co-led by AG Jennings, New Jersey Attorney General Matthew J. Platkin, District of Columbia Attorney General Brian Schwalb, and Massachusetts Attorney General Andrea Joy Campbell.  The letter has been co-signed by the Attorneys General of California, Connecticut, Hawaii, Illinois, Maryland, Minnesota, New York, Nevada, Oregon, and Rhode Island.

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