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Congress·In Committee·H.R. 7133

Congress Proposes Law to Stop States from Blocking Gun Store Sales Codes

Merchant Codes Can Save Lives Act

2 months ago·View on Congress.gov
Part of: The Legislative Tug-of-War Over Firearm Merchant Category Codes

Legislative Progress

House
Senate
President
Law

Key Points

  • This bill would stop states from banning the use of special tracking codes for gun and ammunition stores. These codes are used by credit card companies to label the type of business where a purchase is made.
  • Currently, some states have passed laws to prevent these codes from being used, often citing privacy concerns for gun owners. This federal law would override those state bans and allow the codes to be used nationwide.
  • Supporters of these codes say they help banks and law enforcement spot suspicious buying patterns that might signal a mass shooting or illegal gun trafficking before they happen.
  • If this becomes law, the U.S. Attorney General would have the power to take legal action against any state that tries to block or discourage banks from using these specific firearm merchant codes.
Gun PolicyConsumer ProtectionData Privacy

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Mixed Impacts(2)
Gun Owner
Neutral

Gun owners would see their firearm and ammunition purchases tagged with a specific merchant category code by credit card companies, even in states that currently ban this practice. Supporters say this helps prevent mass shootings, but many gun owners worry it creates a backdoor registry of their purchases and could lead to banks flagging or restricting legal transactions based on buying patterns.

Small Business Owner
Neutral

Gun shop owners and ammunition dealers would be classified under a specific merchant category code nationwide, regardless of state laws that currently protect them from this labeling. While this doesn't change what they can sell, some worry it could lead banks or payment processors to treat them differently — potentially flagging transactions or adding extra scrutiny to their businesses.

Broader Impacts

Score
Scores: -5 (harmful) to +5 (beneficial)Short-term: 0-2 yearsLong-term: 10-30 years

Milestones

2 milestones2 actions
Jan 16, 2026House

Referred to the House Committee on Financial Services.

Jan 16, 2026

Introduced in House

Source Information

Document Type

Congressional Bill

Official Title

Merchant Codes Can Save Lives Act

Bill NumberHR 7133
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Financial Services.

Sponsor

Analysis generated by AI. Always verify with official sources.