New Jersey 2026-2027 Regular Session

New Jersey Senate Bill S1705

Introduced
1/13/26  

Caption

Prohibits use of new merchant category code by credit card companies for purchases of firearms and ammunitions.

Impact

The legislation directly addresses concerns that the new merchant category code would allow financial institutions to flag certain transactions as 'suspicious.' Proponents of the bill claim that such practices could create a de facto gun registry, exposing lawful gun buyers to potential harassment or targeted investigations. They argue that this would create broader implications for privacy rights, as documented purchases could be misused to profile innocent citizens based on their legal choices to own firearms.

Summary

Senate Bill S1705 seeks to prohibit credit card companies from using a newly approved merchant category code specific to firearms and ammunition purchases. According to the bill, merchants selling firearms and ammunition should be classified under existing categories for general merchandise or sporting goods, thereby preventing any additional scrutiny linked to firearm transactions. The bill's sponsors argue that distinguishing purchases of firearms from other merchandise could lead to undue profiling of law-abiding citizens and potentially infringe on their Second Amendment rights.

Contention

Notably, the bill's introduction has become a point of contention between advocates for gun control who support measures aimed at preventing gun violence through monitoring transaction patterns and gun rights activists. The latter group views the creation of a specific merchant category code for firearms as an overreach and as a mechanism that could discourage lawful retailers of firearms from operating effectively. There are also concerns that this could lead to financial institutions refusing services to merchants due to an unjustifiable association with criminal activities.

Further_considerations

The bill also mandates investigations by the Department of Law and Public Safety regarding any violations of its provisions, allowing fines of up to $10,000 for infractions. This heavy-handed approach to regulation raises questions about the balance between preventing violence and protecting individual rights, making S1705 a landmark piece of legislation in the ongoing dialogue surrounding gun rights and regulation in New Jersey.

Companion Bills

NJ S1866

Carry Over Prohibits use of new merchant category code by credit card companies for purchases of firearms and ammunitions.

NJ A258

Carry Over Prohibits use of new merchant category code by credit card companies for purchases of firearms and ammunitions.

NJ A1251

Same As Prohibits use of new merchant category code by credit card companies for purchases of firearms and ammunitions.

Similar Bills

NJ A1251

Prohibits use of new merchant category code by credit card companies for purchases of firearms and ammunitions.

NV SB438

Provides for the licensure and regulation of merchant acquirer limited purpose banks. (BDR 55-974)

HI SB2956

Relating To Consumer Protection.

HI HB2614

Relating To Deceptive Practices.

MI HB4595

Liquor: licenses; issuance of specially designated merchant license or specially designated distributor license; allow for certain locations. Amends sec. 533 of 1998 PA 58 (MCL 436.1533). TIE BAR WITH: HB 4282'25

NJ S2079

Concerns credit card interchange fees and consumer protection.

NJ A1921

Concerns credit card interchange fees and consumer protection.

MI SB0624

Liquor: licenses; local legislative body approval for a specially designated merchant license or specially designated distributor license; require. Amends sec. 533 of 1998 PA 58 (MCL 436.1533).