Intuit reverses decision to ban gun companies from using services

Sen. Ted Cruz, R-Texas, Senate Commerce Committee ranking member, is lauding a recent decision from software giant Intuit on a reversal of its policy that had forbade gun manufacturers and sellers from using certain services from the company.

The services in question relate to QuickBooks, a tool for small businesses to assist with accounting and financial information, that is developed by Intuit.

Ticker	Security	Last	Change	Change %
INTU	INTUIT INC.	634.07	-7.66	-1.19%

A spokesperson with Intuit commenting on the change in policy tells FOX Business, "Intuit continually reviews and updates our policies to ensure they best serve the needs of our customers and remain compliant with all applicable federal and state laws. Our Acceptable Use Policy is based on various factors, including compliance with laws and banking partner requirements. Our commitment to customers is unwavering, and we will continue to ensure our policies serve their needs."

The reversal comes in the wake of an oversight investigation launched by staff of Cruz on the Commerce Committee into business practices from the software company.

In a letter to Intuit CEO Sasan Goodarzi, exclusively obtained by FOX Business, Cruz described the QuickBooks policy, which was in effect until Aug. 1, 2023, that said businesses engaged in "guns and firearms manufacturing… [are]… ineligible (or may become ineligible)" for QuickBooks’ payroll services.

A similar policy was also apparently in effect for businesses engaged in "mail order, phone, or online… firearms and weapons sales."

In the letter, Cruz wrote, "My office became aware of these discriminatory policies when Dawson Precision, a Texas company that manufactures small firearm parts, informed my office that Intuit had, without warning, canceled its subscription to QuickBooks payroll services."

"Dawson Precision only discovered what had happened after it submitted payroll…Intuit later said that it canceled Dawson Precision’s account because, as a firearm manufacturer, it was in violation of Intuit’s acceptable use policy," Cruz added.

"My office became aware of these discriminatory policies when Dawson Precision, a Texas company that manufactures small firearm parts, informed my office that Intuit had, without warning, canceled its subscription to QuickBooks payroll services… Dawson Precision only discovered what had happened after it submitted payroll… Intuit later said that it cancelled Dawson Precision’s account because, as a firearm manufacturer, it was in violation of Intuit’s acceptable use policy"  

- Letter from Sen. Ted Cruz

As a result of the incident, according to the letter, Dawson Precision was forced to print paper checks "for weeks" while searching for another vendor to handle payroll.

Cruz, however, did not lay blame entirely at the feet of Intuit, instead alleging that one of the company’s banking partners – JPMorgan – had "demanded that Intuit create and enforce bank policies regarding firearm sellers and manufacturers."

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Ticker	Security	Last	Change	Change %
JPM	JPMORGAN CHASE & CO.	249.72	-0.07	-0.03%

Commerce Committee staff, upon hearing of these revelations from Intuit, then held a briefing with both banks where JPMorgan acknowledged being the source of the services policy.

When reached for comment by FOX Business, a spokesperson for JPMorgan said, "For any third party processors that process payments in aggregate, we are unable to perform the due diligence expected by regulators for several highly-regulated industries, including internet firearms retailers, so we cannot process such payments for these processors. Any such merchants can look to work directly with us rather than through a third party processor. We do allow payments to be processed through these processors for brick and mortar firearms retailers."

Ticker	Security	Last	Change	Change %
BAC	BANK OF AMERICA CORP.	47.04	-0.47	-0.99%

Cruz also cited Bank of America's involvement. Intuit claimed the bank enforced restrictions on their services, according to Intuit company representatives who detailed the following in a briefing with senate staff. 

"Intuit clarified that Bank of America required it to prohibit gun manufacturers from using QuickBooks payroll services…Bank of America, however, denied that it had ever given Intuit any instructions relating to firearm manufacturers or sellers. Intuit insisted that Bank of America did. Regardless of who originated these discriminatory policies against gun manufacturers, Intuit was right to end them" Cruz wrote. 

Bank of America declined to comment to FOX Business. 

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Following the August policy change, there is now no current mention of prohibitions on payroll and payment process for gun companies.

Cruz in the letter, while satisfied with the outcome, said his staff would nevertheless "continue their investigation to ensure that no financial services firm unnecessarily limits the firearm industry’s access to accounting or banking products."

Concluding his letter to Goodarzi, he wrote, "As a result of my staff’s investigation, Intuit did the right thing regarding its payroll and payment services. I encourage other companies to follow your company’s lead and take note that banning customers from using their products due to political differences is not good business."

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This story has been updated to include developments with Bank of America.