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Four digits have caused more political fighting than most tax bills. Since 2022, gun retailers have been caught in a tug-of-war over a single merchant category code, MCC 5723, created specifically for gun and ammunition shops. Some states require banks to use it. More states ban it. Congress is now weighing in. And you’re the one whose card transactions get labeled.
Here’s what the code is, where it stands in 2026 and what it actually means for your firearms merchant account.
Key takeaways
- MCC 5723 is a merchant category code for gun and ammunition shops, approved by the International Organization for Standardization in 2022.
- The card networks paused rollout in 2023, but California, Colorado and New York passed laws requiring it.
- More than a dozen states have passed laws restricting or prohibiting firearms-specific codes.
- The House passed a federal bill to bar the code in July 2026. It was still waiting on the Senate. Meanwhile, your code may depend on where you’re located and where you sell.
What Is MCC 5723?
Every merchant account carries a four-digit merchant category code that tells the card networks what kind of business you are. Before 2022, gun shops were usually coded as sporting goods or general retail. In September 2022, the International Organization for Standardization approved MCC 5723, a code specifically for gun and ammunition retailers.
Supporters said it would help spot suspicious purchase patterns. Opponents said it would let banks and governments track lawful gun purchases. Both sides agreed on exactly one thing: it mattered. That’s about as much agreement as this topic gets.
How We Got Here
| When | What happened |
|---|---|
| September 2022 | ISO approves MCC 5723 for gun and ammunition shops |
| March 2023 | Visa, Mastercard and American Express pause rollout amid state legislation |
| 2023 to 2024 | States split: some ban firearms-specific codes, others require them |
| May 1, 2025 | California deadline for acquirers to assign the code to firearms merchants |
| July 2026 | House passes the Protecting Privacy in Purchases Act (H.R. 1181) to bar gun-specific codes |
Where the States Stand
States that require the code: California was first, and its law covers businesses selling online into the state, not just stores located there. Colorado and New York followed with their own requirements.
States that restrict or ban it: More than a dozen states, including Florida, Texas, Georgia, Tennessee, Idaho, Montana, Utah, Wyoming, Indiana and Kentucky, have passed laws limiting or prohibiting firearms-specific codes or the tracking of firearms purchases by code.
If you sell online across state lines, you can end up with one state that says you must be coded 5723 and another that says nobody may treat you that way. Banks love clear rules. This isn’t one.
The Federal Bill
In July 2026, the House passed H.R. 1181, the Protecting Privacy in Purchases Act, by a vote of 221 to 201. It would bar financial institutions from using merchant category codes unique to gun retailers. The Senate companion bill was still in committee, with no hearing scheduled as of mid-July 2026. Until Congress finishes, the state patchwork is the law of the land.
What This Means for Your Merchant Account
Your code may depend on geography. A shop in California will likely be coded differently from a shop in Texas, even if they sell the same products. Online sellers should ask their processor how they handle multi-state sales.
The code doesn’t decide whether you can get processing. Plenty of banks serve firearms merchants under whatever code applies. The bigger hurdles are the ones we cover in why banks decline firearms merchant accounts: bank policy, reputational concerns and compliance documentation.
Accuracy still matters. Whatever code your account carries, your application, website and product mix should match it. Misclassification creates its own problems, and none of them are fun.
Ask before you sign. A good processor can tell you which code they’ll assign, why, and how they handle state law where you operate.
Selling firearms or ammunition? See how we set up firearms merchant accounts →
Questions to Ask Your Processor
- Which MCC will my account carry, and why?
- How do you handle states that require or prohibit MCC 5723?
- If I sell online into California, Colorado or New York, does that change my code?
- What happens to my account if federal law changes?
- Have you boarded firearms merchants before, and do your banking partners actually want this business?
The Merchant Guru’s Take
The MCC fight is loud, but for most gun retailers it isn’t the thing that decides whether they get approved. Bank appetite, documentation and a clean application matter more. Know which rules apply where you sell, work with a processor that can explain them, and let the politicians argue about the four digits. For the step-by-step, see how to get approved for a firearms merchant account, or learn about our firearms and gun store merchant accounts.
Frequently Asked Questions
What is MCC 5723?
MCC 5723 is a merchant category code for gun and ammunition shops, approved by the International Organization for Standardization in 2022.
Do Visa and Mastercard use the firearms MCC?
The card networks paused their rollout in 2023. The code is used where state law requires it, such as California.
Which states require the firearms merchant code?
California, Colorado and New York have passed laws requiring firearms merchants to be assigned the code.
Which states ban the firearms merchant code?
More than a dozen states have passed laws restricting or prohibiting firearms-specific codes, including Florida, Texas, Georgia and Tennessee.
Does the firearms MCC affect whether I can get a merchant account?
Not usually. Approval depends more on bank appetite, documentation and your application than on the code itself.
This article reflects state and federal developments as of October 2026. Laws on firearms merchant codes vary by state and may change. It is general information, not legal advice.
