The news: The New York City Employees’ Retirement System, Teachers’ Retirement System, and Board of Education Retirement System filed shareholder proposals with American Express and Mastercard asking both firms to establish clearer standards for tracking gun sales, per a press release.
What they’re asking: The three pensions want a merchant category code (MCC) created for gun and ammunition stores.
The three pensions also asked Amex and Mastercard to report their governance of MCC standards and disclose information related to establishing an MCC for gun and ammunition stores. The pensions own a combined $241 million worth of shares in Amex and $834 million worth of shares in Mastercard. While they also own a stake in Visa, they didn’t file a shareholder proposal with the company because they missed the deadline for resolutions.
Why it matters: In the wake of mass shootings in New York and across the country, some lawmakers and government agencies think major payment companies could play a role in helping prevent such fatalities because of their scale and consumer purchase data. Mastercard and Visa held a combined 63% share of global network volume last year, according to the Nilson Report.
The bigger picture: FIs and fintechs may have to accommodate stronger safeguards around gun sales in the future.
Credova has until September 26 to respond to lawmakers’ queries. The information may inform future regulation related to gun purchasing.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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