This is a familiar topic. Just wait for your VISA to be replaced with a MasterCard. It’s been happening a lot lately. I don’t know exactly what it means except that “something is happening.”
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Sep 13, 2022 5:31 PM
Over the past week, much has been said about the role of payments companies in facilitating transactions — and what role we should play, if any, in tracking cardholder purchases. We wanted to share Visa’s perspective on this important topic.
As background, last week the International Organization for Standardization (ISO), a global standards-setting organization, decided to establish a new merchant category code (MCC) for “gun and ammunition stores.” Many misunderstand what that means and are, in turn, advocating the use of MCCs to “track” gun sales as a potential tool in combatting gun violence. That’s not what merchant codes are designed for, nor should they be.
MCCs already exist for hundreds of different businesses, including beauty salons, bookstores, newsstands, bowling alleys and bakeries, among many others. They are four-digit category codes used only to classify the type of business a retailer operates. However, MCCs do not give Visa or any other payment network visibility into product-level data, also known as “SKU-level” data. When we process a transaction, we have no visibility into what items a consumer is purchasing — this is true irrespective of which MCC applies to a merchant.
We do not believe private companies should serve as moral arbiters. Asking private companies to decide what legal products or services can or cannot be bought and from what store sets a dangerous precedent. Further, it would be an invasion of consumers’ privacy for banks and payment networks to know each of our most personal purchasing habits. Visa is firmly against this.
As we do when ISO creates a new merchant code, Visa adopts the standards that apply to our industry. For us, that means working with our financial institution clients to enable them to implement this new MCC when ISO makes it available.
A fundamental principle for Visa is protecting all legal commerce throughout our network and around the world and upholding the privacy of cardholders who choose to use Visa. That has always been our commitment, and it will not change with ISO’s decision. Our rules require financial institutions involved in transactions to evaluate and process all legal transactions. Our network does not allow any financial institution member to deny transactions for the purchase of legal goods or services based on which MCC they fall under.
Visa provides our services to everyone, everywhere, so long as they are used for legal purchases. We believe that is the appropriate standard."
Everything was working fine up until now, so why was the gun/ammunition distinction needed??
sounds like they are trying to avoid any backlash, that the gun community will bring down on them. its almost as if they are blowing smoke up our ars
If it wasn’t a thing, then why are they making statements about clarifying statements. That’s always a telltale sign that their finger is on the switch just in case the language changes…notice the terminology “so long as they are used for legal purchases…”
Yes I notice that it says
“Our network does not allow any financial institution member to deny transactions for the purchase of legal goods or services based on which MCC they fall under.”
However, Visa makes it technically possible
to deny transactions for the purchase of legal goods or services based on which MCC they fall under.
When there is a tool, there is a temptation to use it.
Do credit card processors have a code for beef? If not, it is coming next.
that is why I use discover and they notifie me if any purchase over $3.00
I think it is important to note a couple of things here. To my understanding, Visa and Mastercard are payment processors, they are not the ones “lending” the money nor denying the purchase, the issuing creditor is. Visa or MC adopting an ISO standard is common practice but they could have opted not to adopt this code if they wanted to. I think the bigger question, and concern, here is why the ISO felt the need to implement this new code? How will your card issuer use it? Will governments use it to subpoena purchase records of individuals shopping in such coded stores? Will stores such as Cabelas, Bass Pro Shops that happen to sell guns be classified under this code? I would argue that neither is a “gun store” as they sell everything under the sun. If Sears was still around, would they? I believe Walmart still sell guns in some states, will Walmart also fall under the new code?
Agreed.