H.R. 1181: Protecting Privacy in Purchases Act
Sponsor
Riley Moore
Republican · WV-2
Bill Progress
Latest Action · Feb 25, 2026
Placed on House floor schedule, Calendar No. 447.
Why it matters
In 2022, the International Organization for Standardization created a special merchant category code — 5723 — specifically for firearms retailers. That meant Visa, Mastercard, and every bank processing your card could see you bought from a gun store, even without knowing exactly what you bought. H.R. 1181 would kill that code and ban anything like it from replacing it.
The bill bans two things. First, payment card networks like Visa and Mastercard cannot require gun stores to use a merchant category code reserved for firearms retailers. Second, the banks and processors that actually assign codes to merchants cannot give a gun store any code that identifies it as a firearms seller. Gun stores would be coded the same as sporting goods or general merchandise — making their transactions indistinguishable from someone buying a tent or a baseball glove.
Enforcement runs through the Attorney General, not private lawsuits. Within 90 days of enactment, the AG must set up a complaint process. Anyone — including gun store owners — can file a complaint. If the AG finds a violation, the company gets 30 days to fix it. If it doesn't, the AG can go to federal court for an injunction.
The preemption clause is the sleeper provision. Several states have passed their own laws around firearm merchant codes — some requiring them, some banning them. H.R. 1181 wipes all of that out. Federal law becomes the only law on this issue, nationwide. However, the bill explicitly preserves existing fraud detection, suspicious activity reporting, and cybersecurity compliance — payment networks can still flag unusual patterns, just not by using a gun-store-specific code to find them.
Visual Summary
H.R. 1181 at a Glance
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<img src="https://legisletter.org/images/bill-infographics/hr1181-infographic.jpg" alt="HR1181 Visual Summary - Protecting Privacy in Purchases Act" style="max-width:100%;height:auto;display:block;" />
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</div>What does H.R. 1181 do?
Bans gun-store-specific merchant codes
Payment card networks cannot require any code that is used only or primarily for firearms retailers or that identifies a store as selling guns, ammo, accessories, or gun parts.
Processors can't assign them either
The ban covers the entire chain — not just Visa and Mastercard at the top, but every bank and processor that assigns merchant codes to individual stores.
AG complaint process within 90 days
The Attorney General must create a public complaint process within 90 days of the bill becoming law. Gun store owners and individuals can both file complaints about violations.
30-day fix-it window, then federal court
Companies found in violation get 30 days to fix the problem after written notice from the AG. If they don't, the AG can seek a federal court injunction — but individuals cannot sue on their own.
Overrides every state and local law
All state and local laws regulating firearm-specific merchant codes are preempted. This kills existing state laws on both sides — whether they required or banned the codes.
Who benefits from H.R. 1181?
Gun owners who use credit or debit cards
Your purchases at firearms retailers would be categorized the same as buying camping gear or a fishing rod. No code in the payment system would mark you as a gun buyer.
Firearms retailers worried about banking access
Some gun store owners say a dedicated merchant code gives banks a reason to drop them or charge higher processing fees. Blending into broader categories removes that pressure point.
Privacy advocates on the right
Second Amendment groups have called the firearms MCC a step toward a de facto purchase registry. This bill would shut that door before the infrastructure matures.
Who is affected by H.R. 1181?
Payment networks and banks
Visa, Mastercard, American Express, and every acquiring bank would need to reclassify firearms retailers under general or sporting goods codes. They'd also face AG enforcement if they don't comply.
Gun safety advocates
Groups that pushed for MCC 5723 as a tool to detect patterns of suspicious bulk purchases would lose a data point they've argued could help prevent mass shootings.
States with existing MCC laws
States like California and Colorado that passed their own firearm merchant code laws would see those laws wiped out by federal preemption — whether they required or restricted the codes.
Law enforcement investigating bulk purchases
Suspicious Activity Reports from banks could still flag unusual transaction patterns, but the specific signal of a dedicated gun-store code would be gone from the data.
H.R. 1181 Common Questions
Can my credit card company tell I bought a gun?
Right now, yes — sort of. Since 2022, gun stores have had their own merchant category code (5723), so your bank can see you shopped at a firearms retailer. They can't see what you bought, but the store type is visible. H.R. 1181 would eliminate that code and force gun stores back into general or sporting goods categories.
Would gun stores still be able to accept credit cards?
Yes. The bill doesn't change how gun stores process payments — it changes how they're categorized. Instead of being labeled with a firearms-specific code, they'd be classified under broader categories like sporting goods or general merchandise. Your card works exactly the same way.
Does H.R. 1181 apply to debit cards and prepaid cards too?
Yes. The bill covers credit, debit, and prepaid transactions. It applies to every payment card network and every entity that processes card payments for merchants — not just traditional credit card companies.
Can banks still flag suspicious gun purchases for fraud?
Yes. The bill explicitly preserves existing fraud detection, suspicious activity reporting, and cybersecurity compliance. Banks can still flag unusual transaction patterns — they just can't use a gun-store-specific merchant code to identify them.
What happens to state laws that require or ban gun store codes?
They all get wiped out. H.R. 1181 preempts every state and local law on firearm merchant category codes. That includes states like California that pushed to require the codes and states that moved to ban them. Federal law becomes the only rule.
Can a gun store owner sue if a bank assigns them the wrong code?
No. The bill doesn't create a private right of action. Only the Attorney General can enforce it. Gun store owners can file complaints through the AG's process, and the AG investigates — but you can't take a bank to court yourself under this law.
How fast would violators have to comply?
Thirty days. If the Attorney General finds a violation, the company gets written notice and a 30-day window to fix it. If they don't, the AG can go to federal court for an injunction forcing compliance.
Is H.R. 1181 likely to pass?
It cleared the House Financial Services Committee 29-23 on a party-line vote and has 132 cosponsors — all Republican. House passage looks probable. The Senate is the bottleneck: it needs 60 votes to beat a filibuster, and bipartisan support is scarce so far.
Based on H.R. 1181 bill text
HR1181 Legislative Journey
House: Committee Action
Feb 25, 2026
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-522.
House: Vote: 29-23
Dec 17, 2025
Ordered to be Reported (Amended) by the Yeas and Nays: 29 - 23.
House: Committee Action
Dec 16, 2025
Committee Consideration and Mark-up Session Held
House: Committee Action
Feb 11, 2025
Referred to the House Committee on Financial Services.
About the Sponsor
Riley Moore
Republican, West Virginia's 2nd congressional district · 1 years in Congress
Committees: Appropriations
View full profile →
Cosponsors (132)
All 132 cosponsors are Republicans. Cosponsors represent 36 states: Alaska, Alabama, Arkansas, and 33 more.
Andy Barr
Republican · KY
Richard Hudson
Republican · NC
Aaron Bean
Republican · FL
Ben Cline
Republican · VA
Scott Perry
Republican · PA
Beth Van Duyne
Republican · TX
Brett Guthrie
Republican · KY
Mike Collins
Republican · GA
Brad Finstad
Republican · MN
Barry Moore
Republican · AL
Daniel Webster
Republican · FL
Michael Guest
Republican · MS
Cosponsor Coverage Map
Committee Sponsors
Financial Services Committee
18 of 54 committee members cosponsored
12 Republicans across this committee haven't cosponsored yet. Mobilize their constituents
H.R. 1181 Quick Facts
- Committee
- Financial Services
- Chamber
- House
- Policy
- Finance and Financial Sector
- Introduced
- Feb 11, 2025
Placed on House floor schedule, Calendar No. 447.
Feb 25, 2026
Constituent Resources
H.R. 1181 Bill Text
“To prohibit payment card networks and covered entities from requiring the use of or assigning merchant category codes that distinguish a firearms retailer from general-merchandise retailer or sporting-goods retailer, and for other purposes.”
Source: U.S. Government Publishing Office
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