Protecting Privacy in Purchases Act

If this passes, payment networks cannot use firearms-specific merchant codes, eliminating a low-friction data point for law enforcement investigating straw purchases and trafficking rings. States and localities that have enacted or proposed firearms merchant code requirements would be preempted; for example, any state seeking to monitor bulk ammunition purchases or suspicious sales patterns would lose that capability. Financial institutions would face federal litigation risk if they attempt to flag suspicious firearms transactions through merchant codes. Conversely, firearms retailers would avoid potential debanking or payment processing refusals based on transaction category. The practical effect depends on whether payment networks were already using or planning to use such codes; as of 2025, some major networks had begun assigning distinct codes following anti-gun-trafficking advocacy, and some retailers had been denied payment processing. This bill would legally prohibit that practice. The Attorney General's enforcement authority would shift power over payment system rules from market and state regulation to federal control.