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A 5345

Enacts the uniform special deposits act

2025 Regular Session Introduced by Pamela Hunter and 2 co-sponsors

NJ requires merchant acquirers to assign the ISO MCC for firearms and ammunition to firearms merchants by May 1, 2027, with OAG enforcement and penalties for violations.

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Bill Summary · A 5345

Summary — Assembly Bill A5345 (2R): Enacts the Uniform Special Deposits Act (merchant category codes for firearms/ammunition)

Purpose

Require merchant acquirers to classify New Jersey firearms businesses using the International Organization for Standardization (ISO) merchant category code (MCC) for firearms and ammunition (ISO code established September 9, 2022). The goal is to ensure consistent coding of payment-card transactions involving firearms, firearm accessories, and ammunition.

Key provisions

  • Requires merchant acquirers to assign the ISO merchant category code for firearms and ammunition to qualifying firearms merchants beginning May 1, 2027.
    • The earlier draft requirement directing payment card networks to make the code available (deadline July 1, 2026) was removed in the 2nd reprint.
  • Establishes the Office of the Attorney General (OAG) as the sole and exclusive enforcement authority; no private right of action is created.
  • Enforcement procedure:
    • OAG must provide written notice at least 30 days before bringing an enforcement action identifying the alleged violations.
    • If the recipient cures the violation within 30 days and submits written confirmation with supporting documentation and policy changes, OAG will not bring the action.
  • Remedies available if OAG brings suit and the court finds a violation:
    • Civil penalty of $10,000 per violation;
    • Injunctive relief to prevent further violations;
    • Reimbursement of reasonable attorney’s fees and costs incurred by the State.

Definitions (selected)

  • “Firearms merchant”: a business physically located in New Jersey whose highest (or expected highest) sales value is from combined in‑State sales of firearms, firearm accessories, or ammunition, as stated by the business to its merchant acquirer.
  • “Merchant acquirer”: entity that establishes a relationship with a merchant to process credit, debit, or prepaid transactions.
  • “Payment card network”: entity that routes transactions among bank participants for authorization, clearing, or settlement.

Timeline and effective date

  • Compliance date for merchant acquirers: May 1, 2027.
  • The act takes effect immediately upon enactment; enforcement provisions include notice-and-cure periods before actions are brought.

Fiscal impact

  • Office of Legislative Services (OLS) estimates potential but indeterminate increases in State expenditures (OAG enforcement and Judiciary caseload) and potential but indeterminate penalty revenue. OLS cannot quantify impacts due to unknown number of violations.

Parties affected

  • Directly: merchant acquirers and businesses that meet the bill’s “firearms merchant” definition.
  • Indirectly: payment processors, banks, and payment card networks that interact with merchant acquirers; firearms merchants’ transaction reporting/merchant coding practices.

Legislative status & sponsors

  • Introduced: Feb 13, 2025. Passed Assembly May 29, 2025 (49-27-2). Passed Senate June 5, 2025. Returned to Assembly June 5, 2025.
  • Sponsors: Assemblywoman Pamela J. Hunter (primary); cosponsors Nader Sayegh and Al Taylor.
  • Companion bills: S3706, S4323.

Compiled from official sources — confirm details with the bill’s official record.

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