Banks, Credit Card Companies Explore Ways to Monitor Gun Purchases

According to MSN (April 30, 2018), banks and credit-card companies are discussing ways to identify purchases of guns in their payment systems, a move that could be a prelude to restricting such transactions, according to people familiar with the talks.

The financial companies have explored creating a new credit-card code for firearms dealers, similar to how they code restaurants, or department stores. Currently, card companies, including networks and banks that issue credit cards, have little to no insight into gun purchases. Gun sellers fall into broader categories such as sporting-goods retailers or specialty retail shops. Big-box retailers that also sell guns are often assigned codes that include “variety” or “discount” stores.

Some talks have gone further. At least one large U.S. bank has had early conversations with lawmakers about potential legislation to require merchants to share information about specific gun-related products consumers are buying with their cards, according to people familiar with the matter.

Such data could allow banks to restrict purchases at certain businesses or monitor them. Banks have at times blocked consumer-card purchases, and they also act as agents of the government in monitoring payments for suspicious activity. 

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A policy where your bank or credit card company monitors your specific legal purchases is fraught with privacy issues. While banks and credit card companies may have a duty and responsibility to monitor their networks for fraud and illegal transactions - it is absolutely none of their business how customers legally spend their money, what businesses they favor, or what specific items they purchase.