Gun Shop Merchant Category Code: What Firearms Retailers Face in 2026
Quick answer: In 2022, the major card networks agreed to a new merchant category code, MCC 5723, specifically for gun and ammunition retailers, separating them from general sporting goods stores for the first time. Backlash was immediate, and the networks paused rollout in 2023. Since then it hasn't gone away, it's turned into a state-by-state patchwork: some states have passed laws requiring card networks and banks to assign and use the code for in-state transactions, others have passed laws banning its use outright, and federal legislation has been introduced to preempt the whole fight nationally. If you run a firearms accessories or ammunition business that takes cards, which code your bank assigns you can depend on which state you're in, and that can change again. A payment setup that isn't a traditional card-network merchant account in the first place never gets a merchant category code assigned to it at all.
Here's what MCC 5723 actually is, why it split into a state-by-state fight instead of a single national rollout, and what "not having one" looks like in practice.
What is a merchant category code, and why did gun stores get their own?
A merchant category code is a four-digit number card networks assign to every business that accepts cards, used for interchange pricing, rewards categorization, and transaction reporting. Before 2022, gun and ammunition retailers were coded under general sporting goods or hardware categories alongside golf shops and hunting gear stores, with no way to isolate firearms-specific spending in card transaction data. In September 2022, the International Organization for Standardization approved a new code, 5723, specifically for gun and ammunition retailers, after sustained pressure from banks, advocacy groups, and some card networks following a series of mass shootings where the perpetrator's card statements were later reviewed for a pattern of ammunition purchases.
Why did card networks pause it instead of rolling it out?
Visa, Mastercard, and American Express each announced in 2023 they would pause implementation after a wave of state-level pushback. Opponents, including firearms retailers, gun-rights groups, and a number of state attorneys general, argued the code amounted to a de facto tracking and reporting mechanism for a specific category of otherwise-legal purchases, distinct from how any other retail category is coded, and raised concerns about how that transaction data could be used, stored, or requested. Several states responded by passing laws that make it illegal for a bank or card network operating in that state to assign or use MCC 5723 for a firearms retailer's transactions at all.
Why isn't this settled yet?
Other states went the opposite direction and passed laws requiring the code's use for in-state gun store transactions, arguing it gives banks and regulators a clearer view of suspicious purchase patterns without touching what's legal to buy. That leaves card networks and the banks that issue their cards navigating contradictory state requirements at once: implement the code where state law demands it, withhold it where state law forbids it, and track which rule applies to which transaction based on the retailer's location. Federal legislation has been proposed on both sides, some bills to mandate the code nationally, others to preempt states entirely and ban its use anywhere in the country, and as of now neither has resolved the conflict. For a firearms accessories or ammunition retailer, that means the compliance picture can depend on which state you're incorporated in, which state your processor is chartered in, and which version of the law is currently in effect, with no guarantee it stays that way.
Does this affect firearms accessories and ammunition sellers, or only gun retailers?
Reporting on MCC 5723 focuses on firearms and ammunition retailers specifically, since that's the transaction type the code was created to isolate. Businesses selling firearms accessories, holsters, optics, cases, cleaning supplies, and tactical gear without ammunition or firearms themselves are typically coded under general sporting goods and aren't the direct target of the code. But that line isn't always clean at the processor level: a business that sells both accessories and ammunition, or that a bank's risk system flags as firearms-adjacent, can end up swept into the same category, the same reporting requirements, and the same state-by-state uncertainty as a dedicated gun retailer.
What does "no merchant category code" actually mean?
ePayVista isn't a card-network merchant account, so there's no MCC assigned to a business using it, because there's no card-network merchant relationship in the first place. Customers still pay by card at checkout exactly as they would at any retailer. What happens after that payment is different: settled funds move over our managed, non-custodial settlement layer, our rails, directly into an account only the merchant controls, outside the merchant category code system entirely. There's no code to assign, no state-by-state rule to track, and no future policy change on either side of the debate that changes how a business gets paid. Setup is a WooCommerce plugin install, not a card-network merchant application. Live in about 5 minutes.
How does this compare to staying on a traditional card-network setup?
| Traditional card-network merchant account | ePayVista | |
|---|---|---|
| Merchant category code | Assigned by the network; subject to the state-by-state MCC 5723 patchwork if selling firearms/ammunition | None assigned; not a card-network merchant relationship |
| Compliance burden | Track which state's rule applies to which transaction, and watch for law changes | Nothing to track on this front |
| Where funds land first | The processor's account, then paid out to you | An account only you control |
| Typical pricing | Standard or elevated high-risk rates plus fees | Flat 1% |
| Underwriting relationship | Ongoing; category classification can be revisited | Setup, not underwriting |
Is this a political statement either way?
No. The MCC 5723 fight is a live legal and regulatory dispute with strong views on both sides, and this isn't an argument for or against any state's law or any proposed federal bill. It's a practical fact for any business selling firearms accessories or ammunition: your transaction classification currently depends on jurisdiction and can change with the next legislative session. A payment setup that doesn't run through the card-network classification system at all isn't taking a side in that fight, it's simply outside it.
What about actual firearm sales, not accessories or ammunition?
Firearm transfers carry separate federal licensing requirements (FFL, ATF) that sit outside payment processing and outside the scope of this piece, exactly as with the firearms accessories merchant account overview. This is about how card transactions for accessories, gear, and ammunition get classified and processed, not about the transfer of a firearm itself.
FAQ
What is MCC 5723?
A merchant category code created in 2022 specifically for gun and ammunition retailers, separating them from the general sporting goods category card networks used before.
Is MCC 5723 currently required or banned?
Both, depending on the state. Some states require card networks and banks to assign and use it for in-state firearms transactions; others have banned its use outright. Federal legislation on both sides has been proposed but hasn't resolved the conflict nationally.
Does MCC 5723 apply to firearms accessories, or only guns and ammunition?
The code specifically targets firearms and ammunition retailers. Accessories-only sellers are typically coded under general sporting goods, though a processor's risk system can still group accessories businesses in with firearms retailers depending on the products sold and how the business is classified.
Can a merchant refuse to have this code assigned?
Where state law requires it, no, a card network or bank operating in that state has to apply it to qualifying transactions. A business that isn't on a traditional card-network merchant account in the first place doesn't have a code assigned by that system at all.
How does ePayVista avoid the MCC question entirely?
Because it isn't a card-network merchant account. Customers pay by card as usual; settled funds move to an account only the merchant controls without a merchant category code ever being assigned to that relationship.
What's the cost?
Flat 1%, deducted automatically as funds settle. No monthly fee, no gateway fee, no reserve.
Stop tracking state legislative sessions to know your own transaction classification
The MCC 5723 fight isn't close to over, and there's no way to predict which way the next state law or federal bill breaks. For a firearms accessories or ammunition retailer trying to just take payments, that uncertainty is a cost on its own, one more thing to monitor that has nothing to do with running the business. A setup that never enters the merchant category code system doesn't have that problem to track.
Get on the ePayVista waitlist or install the WooCommerce plugin and accept firearms accessories and ammunition payments without a merchant category code, a state-by-state patchwork, or an underwriting file, flat 1%, settled into an account only you control.
ePayVista helps legal high-risk merchants, including firearms accessories, gear, and ammunition sellers, accept card payments and receive settled funds into an account they control, for a flat 1%, with no chargebacks and no freezes. Setup is a WooCommerce plugin, not a card-network merchant application.
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