UNITED STATES: The biggest payment processor in the world, Visa Inc (V.N), announced on Saturday that it will introduce a new merchant category code for American gun shops, which will identify transactions at gun stores.
Following pressure from gun control campaigners who claim it will assist trace shady transactions of firearms, the International Organization for Standardization (ISO) approved the introduction of the merchant code on Friday.
According to a statement from Visa, “Following ISO’s decision to establish a new merchant category code, Visa will proceed with next actions, while ensuring we protect all legitimate trade on the Visa network by our long-standing regulations.”
Following ISO’s approval, Mastercard Inc. (MA.N) stated on Friday that it would “shift its emphasis to how it will be implemented by merchants and their banks as we continue to promote legal purchases on our network while safeguarding the privacy and decisions of individual cardholders.”
When ISO creates a new code, American Express Co (AXP.N) said the business will collaborate with partners and third-party processors on implementation. The code will reveal where a person spends their money but not what they bought.
Several prestigious U.S. pension funds, notably those for public employees in New York City and California, submitted shareholder resolutions requesting input from payment businesses.
The new code has some proponents of gun rights concerned that it could result in unlawful spying.
Mass shootings this year, including one at a Texas elementary school where 19 children and two teachers were slain, have fueled the ongoing argument for gun restriction in the United States.
President of the United States Joe Biden has urged Congress to adopt an assault weapons prohibition and $37 billion for programmes that fight crime, including $13 billion to employ and educate 100,000 more police officers over the next five years.