Credit card companies may soon flag unusual, substantial gun purchases

ALBANY — Credit card companies will soon be able to flag unusual or substantial purchases of guns and ammunition to law enforcement in a move that state Attorney General Letitia James said will be a substantial tool to head off mass shootings.

The International Standardization Organization voted Friday to set the new voluntary standard for credit card companies, which will mirror what those companies have already agreed to do in cases of money laundering and fraud. The process would be automatic and done through a four-digit Merchant Category Code at the point of purchase.

The code could flag, for example, a cardholder’s first purchase of a semi-automatic rifle or a large purchase of ammunition.

The ISO, based in Switzerland, is an independent, nongovernmental international organization that brings together experts to develop voluntary standards to solve global challenges involving issues such as food, energy conservation, workplace safety, health and internet security.

“Today’s decision requiring credit cards to categorize gun sales is a big victory that will help us better address gun violence and avoid tragedies,” James said Friday. “Labeling gun and ammunition sales is a responsible, common-sense way to help protect Americans.”

James said she will urge credit card companies to report “suspicious transactions on gun and ammunition sales.” Credit cards have been commonly used by perpetrators of mass shootings, according to the attorney general’s office.

“By working together and using the tools at our disposal, including this new categorization, we will help protect our communities and save lives,” James said.

The attorneys general also appealed to American Express, MasterCard and Visa to develop and use the code.

MasterCard spokesman Seth Eisen issued a statement that said the major credit card company will “now turn our focus to how it will be implemented by merchants and their banks as we continue to support lawful purchases on our network while protecting the privacy and decisions of individual cardholders.”

‘We understand and appreciate the significant policy imperative in reducing gun violence,” Eisen said. “We believe it is that type of effort that will meaningfully address the tragic gun violence facing the country.”

In 2018, The New York Times reported that at least 8 of 13 mass shootings over the decade were financed using credit cards, often involving purchases of thousands of dollars.

James and California Attorney General Rob Bonta weighed in on the issue before this week’s ISO vote after previous appeals had failed, according to a spokesman for the New York State attorney general.

Nearly 40 Democrats in Congress separately urged credit card companies to adopt the practice. And the effort is supported by gun control groups, including Everytown for Gun Safety.

“Banks should report dangerous warning signs to law enforcement when extremists are quickly building up massive stockpiles of guns, but that first requires ensuring gun store transactions have a unique identifier,” said John Feinblatt, president of Everytown for Gun Safety.

But Lars Dalseide, spokesman for the National Rifle Association, said, "The ISO’s decision to create a firearm specific code is nothing more than a capitulation to anti-gun politicians and activists bent on eroding the rights of law-abiding Americans one transaction at a time. This is not about tracking or prevention or any virtuous motivation – it’s about creating a national registry of gun owners."

By Michael Gormley

michael.gormley@newsday.com@GormleyAlbany

Michael Gormley has worked for Newsday since 2013, covering state government, politics and issues. He has covered Albany since 2001.