Please read all the text below.  It starts with an email from First Data Corp. to the NSSF, and then there is a reply back to First Data Corp. from the NSSF.  Since we are not sure where this leaves us we have decided to not accept any Citi credit cards for now.
We are awaiting an answer from Citi to be sure they will not be holding funds based on the stuff below.  Once we receive an answer we may be allowed to accept Citi cards.  But until then we will not.....

Please, anyone who reads this use the email address to First Data Corp. and let them know what you think.  Questions@firstdata.com

See this quote from the ATF Federal Firearms Regulations Reference Guide about selling firearms across state lines....  It is lawful for a licensee to sell across state lines.

Federal Firearms Regulations Reference Guide, Page 182, section F2
 (F2) May a licensed dealer sell a firearm to a nonlicensee who is a resident of another State? Generally, a firearm may not lawfully be sold by a licensed dealer to a nonlicensee who resides in a State other than the State in which the seller’s licensed premises is located.
However, the sale may be made if the firearm is shipped to a licensed dealer whose business is in the purchaser’s State of residence and the purchaser
takes delivery of the firearm from the dealer in his or her State of residence. In addition, a licensee may sell a rifle or shotgun to a person who is not a
resident of the State where the licensee’s business premises is located in an over-the-counter transaction, provided the transaction complies with
State law in the State where the licensee is located and in the State where the purchaser resides.
[18 U.S.C. 922(b)(3)]

The NSSF when used below is the National Shootings Sports Foundation.

UPDATE:  January 18, 2008
This is an email sent to First Data and the reply we received.  Our original email is listed second.
First Data's Reply:

Thank you for your message. 

 

Citi Merchant Services and First Data do process firearms transactions. Our policy restrictions address only the sale of firearms in a non face-to-face environment. Non face-to-face transactions occur when a cardholder is not present in front of a merchant and includes mail order and online purchases. It is our policy not to service merchants that make non face-to-face sales in a number of industries, including firearms.

 

It is not the policy of Citi Merchant Services or First Data to refuse to process transactions from duly licensed merchants that sell firearms in face-to-face transactions at the point of sale.

 

 

The Email We sent to First Data:
From: Skip [mailto:skip@skipsfirearms.com]
Sent: Thursday, January 17, 2008 3:54 AM
To: Questions
Subject: CDNN

 

Dear sirs,
I am a firearms dealer in TN.  If I accept Citi credit cards from an out of state buyer, but do not use Citi Merchant Services will my money be held?
Please see the quote below from the ATF "White Book".  It is legal for me as a dealer to sell firearms across state lines as long as they go to another licensee in that state.

I just want to know does all this between you and CDNN cover only those using your merchant services, or does it cover anyone taking a customers Citi credit card?

Thank You,
Skip Dempsey
Skip's Firearms
423-238-4800


Federal Firearms Regulations Reference Guide, Page 182, section F2
(F2) May a licensed dealer sell a firearm to a nonlicensee who is a resident of another State? Generally, a firearm may not lawfully be sold by a licensed dealer to a nonlicensee who resides in a State other than the State in which the seller’s licensed premises is located.
However, the sale may be made if the firearm is shipped to a licensed dealer whose business is in the purchaser’s State of residence and the purchaser
takes delivery of the firearm from the dealer in his or her State of residence. In addition, a licensee may sell a rifle or shotgun to a person who is not a
resident of the State where the licensee’s business premises is located in an over-the-counter transaction, provided the transaction complies with
State law in the State where the licensee is located and in the State where the purchaser resides.
[18 U.S.C. 922(b)(3)]

 

The following is an email request to NSSF from First Data Corp.:

We respectfully request that you remove the posting from your website regarding Citi Merchant Services and First Data Corp. As detailed below, the posting is inaccurate. Further, while we generally do not comment on individual merchant customers, we would like to briefly address the 12/26 letter posted on your web site. Regretfully, that letter did a less than satisfactory job of expressing applicable policies. Those policies are more properly detailed below.
Citi Merchant Services and First Data do process firearms transactions. Our policy restrictions address only the sale of firearms in a non face to face environment. Non face to face transactions occur when a cardholder is not present in front of a merchant and includes mail order and online purchases. It is our policy not to service merchants that make non face to face sales in a number of industries, including firearms.

It is not the policy of Citi Merchant Services or First Data to refuse to process transactions from duly licensed merchants that sell firearms in face to face transactions at the point of sale.

Please direct any questions to Questions@firstdata.com.

Sincerely,

First Data Corporation

Reply back from NSSF.

 

 

January 10, 2008

Dear Ms. Etheredge:

This is to confirm the National Shooting Sports Foundation’s receipt of your email response on behalf of First Data Corporation and Citi Merchant Services on Wednesday, January 9, 2008, concerning First Data and Citi Merchant’s unilateral decision to stop processing credit card transactions involving the lawful sale of firearms by lawabiding, federallylicensed, firearms distributors/retailers. Regrettably, your email serves to confirm the antigun corporate policy of First Data and Citi Merchant Services and that the article in our publication “Bullet Points,” and subsequent posting to our Website, was based on a correct and accurate understanding of that policy as articulated in the December 26, 2007, letter to Mr. Charlie Crawford at CDNN Sports Inc.

We had hoped to hear from First Data Corporation and Citi Merchant Services that this was not your corporate policy and that the letter was merely the illconsidered actions of a single employee.  Your antigun corporate policy is based on ignorance of the law applicable to the sale of firearms. It is perfectly legal, in fact commonplace, for a federal firearms licensee in one state to sell a firearm to a nonlicensee (consumer) from another state. What you fail to appreciate is that the firearm is not shipped in interstate commerce directly to the consumer. Rather, as required by federal law, the firearm is shipped by the selling licensee to another federal firearms licensee in the state of residence of the consumer who is purchasing the firearm. The consumer acquires the firearm from that licensed dealer in a face to face transaction after completion of a Firearms Transaction Record, commonly referred to as an ATF Form 4473, and a federally mandated background check to ensure that the purchaser is legally permitted to buy the firearm.  Furthermore, the policy of First Data and Citi Merchant Services interferes with the receiving and shipping of inventory from and to federally licensed firearms retailers, distributors and manufacturers. This inventory supplies not only lawabiding Americans, but military and law enforcement agencies as well.  June RiveraMantilla’s original correspondence contained so many errors that one could only deduce that it was an uninformed mistake that would consequently be corrected.

Instead, we learned yesterday that First Data Corporation and Citi Merchant Services stands behind the policy, which affects not only firearms retailers, manufacturers and distributors, but also law enforcement agencies at the federal, state and local levels of government and lawabiding citizens.  NSSF will not remove its Web posting nor will we rescind or alter our story. However, if we receive written confirmation from you that, after having researched the law, First Data and Citi Merchant Services have changed their corporate policy, we will consider publishing that fact in a followup story.

Sincerely,

Jake McGuigan
Director of Government Relations
Ted Novin
Director of Public Affairs

Image of original letter to CDNN Sports Inc.