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The
decision came after the International Organization for
Standardization (ISO), which decides on the classification of
merchant categories used by payment cards, approved in September
the launch of a dedicated code for gun retailers.
Proponents of the move, including gun control activists and
Democratic politicians, say it will allow financial institutions
to better assist authorities in investigating crimes involving
gun violence in the United States.
There has been uncertainty around the implementation, with Visa
Inc, Mastercard Inc and American Express Co yet to disclose a
timetable for adopting the change. Although the codes will not
show specific items purchased, some Republican politicians have
spoken out against the move, arguing it could violate the
privacy of U.S. citizens lawfully buying guns.
Discover said it will include the new code in its next policy
and product update to merchants and payment partners, in April.
"We remain focused on continuing to protect and support lawful
purchases on our network while protecting the privacy of
cardholders," Discover said in its statement to Reuters.
A Visa representative declined to comment on its schedule for
the new code. Mastercard and American Express representatives
did not immediately respond to requests for comment on their
plans. Last fall, the companies said they would work to
implement the code while respecting privacy rights.
A representative for Geneva-based ISO said the new code, dubbed
"5723 - Gun and ammunition shops" - would be available for
financial institutions to use by the end of February.
"The decision to use the new merchant category code is
eventually left up to the users in the industry," the ISO
representative said.
Discover handled 2% of the $9.56 trillion purchased on U.S.
credit and debit cards in 2022, according to industry researcher
Nilson Report. Industry leader Visa had a 61% share, Mastercard
26% and American Express 11%.
(Reporting by Ross Kerber in Boston; Editing by Matthew Lewis)
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