[Zedicus]

http://www.merchanttalk.com/2008/01/08/first-data-guns-down-merchants/

First Data Guns Down Merchants
January 8th, 2008

First Data Guns Down MerchantsEffective today, First Data has just terminated all of its firearm merchants selling in non face-to-face transactions. For those of you not familiar with credit card processing, First Data is responsible for more than 60% of payment processing in the United States. They have not only terminated many of these legitimate and established merchants but they have done so while holding all outgoing funds. Several banks have followed suit with CitiGroup (NYSE C) immediately jumping on the bandwagon and Bank of America (NYSE BAC) expected to follow.

While I personally don’t own a gun, nor plan to, I respect the rights of people to legally own and legally sell them. While the system isn’t perfect, for major banks and processors to take a stance like this is wrong and illegal. I suspect that the National Rifle Association will follow up with an official response.

Please don’t make this a matter of whether you agree with gun sales or not, it’s not the job of First Data or any such private organization to take this stance. I imagine that the matter will be overturned in court.

Let’s see, what industry is next? People, this is a prime example of my earlier post today and I hope that the government steps in immediately to stop private industry from making such decisions immediately. Whatever your opinion is on firearms, this is only the beginning. Because if this manages to stick, before long your industry may be next.

Time to go Back to COD systems Methinks

[FieroCDSP]

I don't hear anyone in this country clamoring or protesting outside banks because they allow people to withdrawl money and it could be used for gun purchases. Any bets on whether the EU is part of this fiasco? Seriously. There is no reason any banking group, whose sole job it is to move electronic money from one place to the next, should take any political stance at all. Someone's forcing hands in the banking industry, and it's not the people of this country.

[ColinthePilot]

So, to clarify, this company processes electronic credit card transactions. They've decided to stop processing transactions that deal with non-face-to-face gun sales. And they're holding the funds from those transactions and not refunding them.

Did I get all that right?

If I did, its ridiculous. Is there anywhere I can find a listing of banks that this company processes credit cards for? I'll be closing any accounts I may have there.

[Zedicus]

Any bets on whether the EU is part of this fiasco?

You can pretty much count on the EU & UK having something to do with this BS.

[dakotasin]

its a good thing their doing this on the heels of the french bank's $7 billion fraud announcement... nothing like keeping faith in the banking institutions...

[everallm]

For God's sake stop being so f***ing paranoid.

This has nothing to say with the EU, the UN, the UK, Black Helicopters, Mormons or Scientology (name but a few of the tin foil brigades favourite shibolleths).

It is pure and simple economics, capitalism and risk based market analysis of what is worth keeping on their books in a litigous environment and a downturning economy.

Deep breath in - Deep breath out.....Repeat after me, the market economy doesn't give a rats' arse about me or my beliefs, it chases the money.

[Ragnar Danneskjold]

And terminating the accounts and freezing commerce of goods and services that routinely transfer hundreds or thousands of dollars per item is good economics...how?

[Zedicus]

And terminating the accounts and freezing commerce of goods and services that routinely transfer hundreds or thousands of dollars per item is good economics...how?

+1

[Coronach]

If they perceive greater liability in The Real World (as opposed to the fantasy world we all wish existed, where everyone stood for right and people who file frivolous lawsuits were put to death via papercut) from processing the transactions than they will net from the proceeds, I can see them being willing to not do business in guns and ammo. Doesn't mean I like it, doesn't mean I'm happy, but it is an explanation that involves logic and money, as opposed to multinational conspiracy theories.

It also doesn't necessarily mean it is correct, either.

Mike