House overrides private-sector concerns to pass bill limiting use of merchant codes in firearm transactions

The Arizona House passed Senate Bill 10-58 on third reading after members debated potential impacts on payment processors and public safety.

Opponents said the bill would create compliance problems for businesses that rely on merchant-category codes and third-party platforms. One lawmaker warned that services such as Zelle, PayPal and Venmo prohibit firearms transactions under their terms of service and that removing merchant codes would make enforcement difficult, potentially forcing companies to choose between operating in Arizona and honoring nationwide policies. "This legislation interferes with private-sector business decisions," the lawmaker said, and cast a no vote.

Supporters argued the bill protects Second Amendment rights and private-property interests and pushed back against claims it would imperil commerce. "This is part of the Second Amendment ... and also addresses Fourth Amendment concerns," one supporter said before voting aye.

The clerk recorded the third-reading vote as 31 ayes and 21 nays; the bill passed and the House instructed the clerk to record the action and convey the bill to the Senate.

Why it matters: Sponsors say SB 10-58 protects lawful firearm commerce and private-property rights; opponents say it inserts the legislature into transactional coding practices used by private companies and could hamper fraud detection and compliance.

What happens next: The clerks were instructed to record the action of the House and convey the bill to the Senate.