What MCC 5723 is, in plain English
MCC 5723 is the four-digit merchant category code the card networks created for firearms and ammunition retailers. Every business that takes cards is tagged with a merchant category code — a florist is 5992, a restaurant is 5812 — and the code travels with each transaction to the card networks and the banks. For most of the industry’s history there was no firearms-specific code; gun stores were coded as general sporting goods (5941) or miscellaneous retail (5999). That changed when the International Organization for Standardization approved a dedicated firearms code, and the card networks began rolling it out. The question for a gun seller today is no longer “does this code exist” but “does my state want me to use it, prohibit me from using it, or leave it alone.”
This guide walks through what MCC 5723 means by state and what you actually need to do about it. Your merchant category code is one of the small details that can stall an application or trigger a review later — exactly the kind of thing we check before you go live. For the larger picture, see firearms payment processing.
Your state’s rule
A few states require the firearms code, roughly twenty prohibit it, and the rest leave it alone.
Coded to match
We confirm your merchant category code with the processor before the account goes live.
A person to ask
Not sure which rule applies to you? Call our team and we will check it against your state.
Why states disagree about the firearms code
The disagreement is about privacy and surveillance, not about processing mechanics. Supporters of the code argue that a firearms-specific category could help flag suspicious purchasing patterns, the way the networks already flag other unusual activity. Opponents argue that coding lawful firearm purchases creates a record of who is buying from a gun store and amounts to tracking a constitutional activity. Both camps turned to their state legislatures, and the result is a patchwork: a handful of states now require the code for qualifying retailers, and roughly twenty have passed laws prohibiting the use of a firearms-specific code.
Because this is moving legislation, treat any list — including this one — as a snapshot. The National Shooting Sports Foundation tracks these bills as they move, and it is a reasonable place to check the current map before you rely on it. See the NSSF government-relations tracker for the latest. The summary below is current as of October 2026.
States that require MCC 5723
As of October 2026, California, Colorado and New York have laws on the books directing that qualifying firearms retailers be assigned the firearms merchant category code. The details differ — some laws apply only to businesses whose primary line is firearms, and the effective dates and enforcement timelines are not identical — but the direction is the same: in these states, a qualifying gun store is expected to carry MCC 5723 rather than a general-retail code.
If your business is located in one of these states, the practical takeaway is that your processor and sponsor bank need to code you correctly from the start. A mismatch between what the law expects and how your account is actually set up is the kind of thing that surfaces at the worst time.
States that prohibit a firearms-specific code
On the other side, roughly twenty states — including Texas and Florida — have passed laws that prohibit the use of a firearms-specific merchant category code, or that bar financial companies from requiring one, treating it as a form of discrimination against the firearm industry. In these states a gun store is coded under a general category such as sporting goods or miscellaneous retail, the way it would have been before the dedicated code existed.
The exact count moves as new bills pass, which is why it is worth confirming against a current source. The point to hold onto is that “should I use MCC 5723” has a different answer in Austin than it does in Sacramento.
What decides which rule applies to you
Two things generally drive it: where your business is located and where your sales take place. A storefront FFL in one state is usually straightforward. The picture gets more involved for online sellers shipping across state lines, for dealers who work gun shows in neighboring states, and for businesses with more than one location. The coding is handled between your processor and the sponsor bank, so the right move is to confirm it up front rather than assume.
- Your primary business location and the state law that applies there
- Whether firearms are your primary line or one department of a larger store
- Whether you sell online, ship across state lines, or work out-of-state gun shows
- How your processor and sponsor bank actually coded the account
Where H.R. 1181 fits in
There has also been movement at the federal level. H.R. 1181, a bill addressing the use of firearms merchant category codes nationally, would change the picture for every state at once if it became law. Its current standing is worth checking before you plan around it: [check current status of H.R. 1181]. Until there is a federal rule, the state-by-state patchwork above is what governs.
What a gun seller should actually do
You do not set your own merchant category code — your processor and sponsor bank assign it — so the useful step is to make sure whoever sets up your account knows the rule for your state and codes you to match it. When we build a firearms file, we confirm the MCC coding with the processor before the account goes live, so it lines up with the law where you operate. That is part of underwriting the account properly the first time instead of fixing it after a problem appears. For the full document and underwriting picture, see getting approved the first time, and for how platform policies differ from state coding rules, read what each payment platform’s firearms policy says.
One last note: incorrect coding is one of the mismatches that can lead to a held deposit or a sudden account review down the road. If you want to understand why those holds happen and how clean setup lowers the odds, see why processors freeze funds.