MCC 5723 Guns and Ammunition

April 11, 2025

Description

Learn about the Guns and Ammunition Merchant Category Code (MCC)

What's in this article?

MCC 5723 is a new classification created for businesses who sell guns and ammunition. California (CA) and Colorado (CO) laws only require the MCC for merchants whose highest sales volume in those states is from selling firearms, firearm accessories and/or ammunition. Like CA and CO, New York (NY) requires the MCC for merchants whose highest sales volume in NY is from selling firearms, firearms accessories and/or ammunition. However, NY also requires the MCC for merchants whose business involves buying, selling or holding/storing ammunition in NY.

This MCC should only be used in those states where it’s legally required. Merchants with multiple lines of business must use the MCC that describes the business with the highest sales volume. Per your merchant agreement, you must abide by all laws, regulations and payment network rules when conducting your merchant business. Any violation of this agreement could lead to the termination of the agreement and the closure of your merchant account.

Here are some examples:

A sporting goods retailer in CA that sells firearms, firearms accessories and/or ammunition in CA, but whose highest sales volume in CA is from the sales of sporting goods outside of these categories, like archery and fishing tackle, wouldn’t be assigned MCC 5723.
A sporting goods retailer in CA that sells firearms, firearm accessories and/or ammunition in CA, and whose highest sales volume in CA is from the sales of firearms, firearms accessories and/or ammunition, should be assigned MCC 5723.
A sporting goods retailer in NY that sells firearms, firearms accessories and/or ammunition, regardless of what their highest sales volume in NY is from would need to be assigned MCC 5723 because they sell ammunition.

FAQs

What if I sell firearms, firearms accessories and/or ammunition at gun shows or from other temporary locations in states where I don’t have a permanent retail location?

To comply with law, we may need to assign you a temporary MCC for use when you sell firearms, firearm accessories and/or ammunition from a temporary location in a state different from a state where you operate a permanent retail location.

For example, if a location on your current merchant account is assigned MCC 5723 and you’ll participate at a gun show outside of CA, CO or NY, you’ll need to request an additional location with an MCC other than 5723 for your account for temporary use at the gun show.

Laws of several other states prohibit the use of MCC 5723 for any merchants or transactions. If a location on your current merchant account isn’t assigned MCC 5723 and you’ll participate at a gun show in CA, CO or NY, then you’ll need to request an additional location with MCC 5723 for your account for temporary use at the gun show.

What if I sell guns, but that's not my primary business (for example, a department or sporting goods store)?

When it comes to the sales of firearms you only need to use the new MCC 5723 if your primary business is the sale of firearms, firearm accessories and/or ammunition based on your sales volume — meaning, your highest dollar volume of sales is from the sale of firearms, firearms accessories and/or ammunition.

However, if you’re an ammunition dealer operating in the state of NY and you sell, buy or hold/store ammunition, you’ll be required to use the MCC in NY regardless of your sales volume. For example, a sporting goods store where the sales of firearms, firearms accessories and/or ammunition only accounts for 10% of their overall sales would need to use MCC 5723 in NY.

Do these requirements also apply to a merchant’s e-commerce volume?

Potentially. In order to determine, we’ll need to ask you for your principal place of business, your state of incorporation, the states where you operate physical locations (both retail and office/warehouse) and the states in which you conduct all or most of your sales.

Generally, the state where you’re physically located for e-commerce transactions (usually your principal place of business) determines the applicable law, unless the state(s) in which you conduct all or most of your sales doesn’t also include the state of your principal place of business.

However, if you make most of your e-commerce firearms, firearms accessories and/or ammunition sales to CA, CO or NY buyers, we should further evaluate applicable laws, even though you aren’t physically located in CA, CO or NY.