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(Reuters) – Mastercard Inc (NYSE:MA) said on Thursday it would pause work on its implementation of a new payments code for gun merchants, citing the complexities raised by pending laws in a number of U.S. states.
A representative for Mastercard said via email that bills in several state legislatures related to use of the code will cause “inconsistency” in how it could be applied by merchants, banks and payment networks.
“It’s for that reason that we have decided to pause work on the implementation of the firearms-specific MCC,” or merchant category code, said the Mastercard representative, Seth Eisen.
The move marks a setback for gun-control activists and will pressure Mastercard’s competitors to give more detail about their own plans for the code.
Last September, the Geneva-based International Organization for Standardization (ISO) approved the new MCC for firearms sellers. The code was meant to help detect suspicious firearms and ammunition sales to combat gun violence.
But it prompted criticism from many U.S. Republican politicians concerned it would lead to what they consider to be improper tracking of consumer behavior. Bills in several Republican-led states would bar or limit the use of the code.
Mastercard and its competitors had said they would adopt the new code but only the smallest of the major payment networks, Discover Financial, has given a public timetable for doing so, in April, and said it was only following the lead of others.
Visa Inc (NYSE:V) and Discover representatives did not return messages about their schedule for implementing the new code on Thursday. An American Express (NYSE:AXP) representative did not immediately comment.
Bloomberg News reported on Thursday that Visa is also pausing implementation of the new code, citing people familiar with the matter.
Mastercard’s Eisen did not offer more detail on the timing of when the payment network operator might resume work on the code, the use of which is voluntary, according to the ISO. Eisen noted the code would not allow banks to track specific items purchased by consumers.
“We are committed to working with policymakers and elected officials to contribute to constructive solutions that address the gun violence issue, while respecting important constitutional rights and protections for lawful activities,” he said.
