No SmartPay for Anti-2A Companies Act
- Sponsor
- Rep. Biggs, Andy [R-AZ-5]
- Committees
- Oversight and Government Reform Committee (primary)
- Last action
- Jan 3, 2025
Bottom line
The bill seeks to leverage federal contracting power to oppose the use of distinct merchant category codes for gun retailers by payment processors.
What it actually does
This bill prohibits the Administrator of General Services (GSA) from awarding new contracts under the SmartPay Program to commercial payment systems that utilize a payment processing agency which has implemented a specific merchant category code (MCC) for gun retailers. Essentially, it aims to prevent federal government payment contracts from going to companies that categorize gun sales with a unique MCC.
Proponents argue
Supporters argue this bill protects Second Amendment rights by preventing financial institutions from tracking or flagging gun purchases, which they view as a form of surveillance or discrimination against lawful gun owners and businesses. They contend that unique MCCs could be used to create registries or restrict access to firearms, and that the federal government should not contract with entities that facilitate such practices.
Opponents contend
Opponents might argue that merchant category codes are standard tools used by financial institutions for fraud detection, risk management, and compliance with anti-money laundering regulations, not for tracking lawful gun owners. They may contend that prohibiting such codes hinders efforts to identify suspicious transactions that could be linked to illegal activities, and that this bill interferes with the private sector's ability to manage its own risk and operations.
The bill text is very short and can be read quickly, allowing ample time for a thorough understanding of its provisions.
Section 2(a)
Prohibition on Contracts for Commercial Payment Systems Using Gun Retailer MCCs
This section forbids the General Services Administration (GSA) from entering into new contracts under its SmartPay Program with commercial payment systems if those systems use a payment processing agency that has created a specific merchant category code (MCC) for gun retailers. The SmartPay Program provides government employees with charge cards for official purchases. The intent is to prevent the federal government from doing business with payment processors that categorize gun sales distinctly.
Supporters argue
Supporters argue this provision is crucial for protecting the privacy and Second Amendment rights of gun owners by preventing financial institutions from creating a de facto registry of gun purchases through unique merchant codes. They believe such codes could be misused to target or discriminate against lawful gun owners and businesses, and the federal government should not support such practices with its contracts.
Critics contend
Opponents contend that this provision interferes with the legitimate business practices of financial institutions, which use MCCs for fraud detection, risk assessment, and compliance with financial regulations. They argue that a specific MCC for gun retailers could help identify suspicious transaction patterns related to illegal arms trafficking or other illicit activities, and that prohibiting its use could hinder law enforcement efforts.
Tradeoffs
The provision balances concerns about individual privacy and Second Amendment rights against the potential for enhanced financial oversight and the ability of financial institutions to manage risk and detect illicit activities. It creates a tension between government contracting power and the operational autonomy of private payment processors.