Getting Approved For a Gun Dealer Merchant Account
America’s firearms and ammunition industry is the most profitable industry in the world. Learn the ins and outs of gun dealer merchant processing and what it takes to get approved by one of our gun-friendly payment processors. A true firearms dealer merchant service provider facilitates a unique blend of compliance and security, and why choosing the proper provider is of utmost importance. Apply now with SecureGlobalPay for gun dealer merchant services and start accepting payments with a gun dealer merchant account today!
According to a report from the Firearm Industry Trade Association, an unprecedented number of Americans are choosing to exercise their fundamental right to bear firearms.
In recent estimates confirmed by the National Shooting Sports Foundation (NSSF), over 5 million new gun owners joined 100 million pre-existing American gun owners in 2020.
In the same year, the industry contributed $63.49 billion to the U.S. economy.
But despite the billions of dollars generated every year by the guns and ammunition industry, a majority of financial institutions refuse to offer merchant account services and payment processing solutions to the industry because it is seen as high risk.
- Are Gun Dealer Merchant Services Considered High Risk?
- Who are the Most Gun-Friendly Credit Card Processors?
- Why Firearm Dealers Are Considered High Risk
- Who is the Best Payment Services Provider for Gun Dealer Merchant Processing?
- Is PayPal a Gun-Friendly Payment Processor?
- Does Stripe Provide Firearm’s Dealer Merchant Services?
- Can I use Venmo for Gun Dealer Merchant Processing?
- Getting a Gun Dealer Merchant Service Account
- Summary of What Credit Card Processing for Firearms Dealers Should Offer
- What is the Best Credit Card Processing Payment Gateway for Firearms Dealers?
- Conclusion – Accepting Payments with a Gun Dealer Merchant Account
Are Gun Dealer Merchant Services Considered High Risk?
Firearms dealer merchant services are typically high-risk transactions, as these businesses handle large amounts of money and make large purchases in order to sell their products.
Therefore, they are at risk of theft, fraud, and scams. As a result, merchants should include special security measures when performing these transactions. Data protection is one of the standard benefits for high-risk merchant accounts and payment processors that provide credit card processing for firearms dealers.
Additionally, firearms dealers should be wary of potential background checks as some fraudulent sellers may try to obtain firearms under false pretenses. If your business sells firearms or ammunition, you must do your due diligence to avoid unwanted complications.
A firearms retailer merchant looking to secure a gun dealer merchant account to accept payments for firearm sales, ammunition sales, and related supplies needs to look beyond traditional financial institutions and look for a seasoned firearms-friendly merchant services provider.
A Gun friendly payment processor will approve the following categories:
- Gunsmith shops or stores
- Pawn shops merchant account selling firearms
- Firearms retailers and distributors
- Gun resellers
- Gun academies
- A high ticket coaching merchant account for tactical training
- Gun shops and gun ranges
- Seller of firearm accessories
- Tactical gear sellers
- Online firearms sales
Who are the Most Gun-Friendly Credit Card Processors?
There are several factors to consider when evaluating high risk merchant account providers. Key factors to consider when selecting a gun dealer merchant account provider:
1. How long the company has been in business.
2. The level of support offered by the company.
3. The fees charged by the company (cheap often isn’t better for this niche).
4. Whether they are PCI compliant.
Not all merchant services providers are equally capable of providing secure payment processing via a gun dealer merchant account. Specialized, gun-friendly payment processors have the ability and know-how to process credit card payments for this industry.
When selecting a gun-friendly payment processor, it is important to research the provider’s capabilities via their reviews to determine if they can provide secure credit card processing for firearms dealers.
If they support card processing, then Visa payments are possible, as announced by the CEO: Visa CEO: Unlike PayPal and Square, we won’t block gun purchases (cnbc.com)
Why Firearm Dealers Are Considered High Risk
Financial institutions are not willing to work with gun dealers because the industry is riddled with excessive chargebacks.
An individual who buys a gun is highly likely to raise a dispute over the purchase because firearms are “high ticket” items with an average firearm sale going for at least $300.
Understanding credit card chargebacks and fraud go a long way. Chargebacks are not great for business and can translate into massive financial losses. Banking institutions are unwilling to bear this debt and choose not to work with firearm dealers.
Fraud might be a common occurrence in every business, but the high price of firearms potentially increases the risks of being defrauded. This is another reason why regular merchant account providers turn down the opportunity of partnering with the gun industry.
Additionally, due to gun violence, the sales of firearms remain heavily regulated by the U.S. government and require additional insurance underwriting—a task that many traditional merchant account service providers want to avoid.
Moreover, increasing cases of gun crimes have contributed to polarized public opinions about gun dealers that banking companies would prefer not to be associated with, in order to preserve goodwill among the people.
For the few banks and credit card companies willing to do business with gun merchants they either charge high rates for transactions or offer restricted merchant account services.
Generally, it is not ideal to deal with these types of payment processors because they can freeze your account or shut it down permanently without notifying you.
Since a majority of regular financial institutions are unwilling to underwrite firearms retailer merchants and ammunition businesses. These industries that are considered high-risk merchants should be looking at securing the services of gun-friendly credit card processors who can.
Who is the Best Payment Services Provider for Gun Dealer Merchant Processing?
As a merchant, you don’t want to be stuck with a solution that doesn’t work for every aspect of your business. It’s important to do your research before choosing a provider for your gun dealer merchant processing needs.
Support is probably the most important factor. It’s important to make sure your provider offers fast and effective customer support.
You want to make sure that your provider offers the full range of features you need to run your business efficiently and effectively. Some providers offer only basic services such as card-to-card processing, while others offer more advanced payment technologies such as EMV chip cards or high risk online online payments.
Security and fraud protection is also vital with any gun dealer merchant account due to the increased risks and high-ticket merchant account sales. SecureGlobalPay is one of the best merchant services providers for gun dealer payment processing with high levels of protection built-in.
Is PayPal a Gun-Friendly Payment Processor?
A PayPal merchant payment solution is a popular payment processing service well-known for its ease of use, especially for businesses and individuals without a lot of technical know-how.
PayPal accepts a wide range of payment methods, including credit cards, bank transfers, and more. Even so, it’s worth remembering that PayPal is not exactly “gun-friendly.” PayPal does not allow for the sale or purchase of firearms or ammunition.
Does Stripe Provide Firearm’s Dealer Merchant Services?
There are two types of Stripe merchant accounts, Basic and Advanced. Basic is good for accepting credit cards and tracking sales. It has lower fees than Advanced accounts. Advanced accounts have deeper features like advanced order management and reporting.
However, if you’re searching for a gun-friendly payment processor to accept credit cards, a Stripe merchant account accepting online payments is not the best choice. Stripe has a list of prohibited businesses, and they quote: “Guns, gunpowders, ammunitions, weapons, fireworks and other explosives” are not permitted. This means that Stripe does not provide firearms dealer merchant service.
Can I use Venmo for Gun Dealer Merchant Processing?
Venmo is a peer-to-peer payment app that allows users to send and receive money, primarily through mobile apps. Some people consider this option when they really need a gun dealer merchant.
Venmo allows users to make and receive payments both in-person and online. It can be used for more than just personal transactions; it can also accept payments from customers.
However, if a Venmo user is found to be using their account to do business with a firearms dealer, they could be subject to charges and penalties. As a result, it’s best to avoid doing business on Venmo if you need a firearms dealer merchant service.
It is in the Venmo terms that “You may not use Venmo to conduct transactions that: involve ammunition, firearms, firearm parts or accessories and any weapons or knives regulated under applicable law.”
Getting a Gun Dealer Merchant Service Account
Getting a Federal Firearms License is a requirement before submitting a high-risk merchant account application.
The next thing to do is to understand rules and regulations regarding sales, transfers, and possession of firearms, ammunition, and gun accessories.
You should not only keep a keen eye on laws in your state. Federal laws should also be of interest to you.
Ensure that all your financial documents are in order, particularly your credit report which can be a deal-breaker when tendering an application.
Research and due diligence are important when it comes to finding a high-risk merchant account provider with a proven track record of credibility.
Never settle for a payment processor offering low prices or willing to open a firearms dealer merchant account without asking too many questions.
Consider only companies offering firearms merchant payments that have good ratings with the Better Business Bureau and Consumer Affairs.
Checking out reviews from credible sources proves that a high-risk merchant account company is secure and reliable. Good reviews instill trust in a brand and give customers the confidence to do business with that brand.
Stay away from gun dealer merchant account services with bad reviews. Do not be swayed by promises of going over and beyond to make you comfortable. Negative reviews are red flags meant to tell potential customers to keep off and not reel them in.
It is also very important to find a high-risk merchant account provider that understands your firearms merchants’ business model. An ideal gun-friendly credit card processor should be an industry expert with in-house account executives capable of tailoring solutions to what your business actually needs.
The right payment processing company must know the ins and outs of getting a gun dealer merchant account approved quickly. It must also have an extensive and strong relationship with multiple FFL-friendly banks and credit card processors.
It is crucial for the firearms merchant account company to provide an array of transaction options for retail, eCommerce, mobile, virtual terminal, and recurring billing for your business.
This must be done without unfair terminations, payout freezes, and interruptions usually common with Square, Stripe, and PayPal.
Summary of What Credit Card Processing for Firearms Dealers Should Offer
- Accept credit, debit, electronic fund transfer, electronic checks, and web/mobile payments like Amazon and Apple Pay
- Top-of-the-line wireless terminals and countertop POS system for retail store
- Virtual terminals for allowing phone payments i.e. mail order/telephone order (MOTO)
- Small card readers and mobile processing software that can be connected to smartphones to accept payments on the go
- Anti-fraud packages and chargeback prevention tools like Intelligent Source Detection, a technology that pinpoints the root cause of chargebacks. And the Advanced Fraud Detection Suite (AFDS), a system that sets thresholds and custom filters before payments can be made.
- Online payment gateways for credit card payments on the website
- PCI compliance
- Provide integration support in the installation of apps and software to create a seamless business flow and minimize administrative workload.
- Low rates guarantee
- Automatic recurring billing
- Online age verification that confirms buyer’s age before purchase
What is the Best Credit Card Processing Payment Gateway for Firearms Dealers?
When starting a firearms business, one of the first things to consider is how you will accept payments. These days, you can use several different payment gateways to process credit card payments for firearms sales. Each has its pros and cons, so choosing the right one for your business is important.
Many different payment gateways are available, but not all are possible to choose from when setting up a merchant account for your firearms business. The best payment gateway for gun dealers will depend on each business’s needs.
Some things to consider when choosing the right firearms merchant account providers payment gateway for your business include:
The payment gateway you choose will charge the processing fees based on the amount you process, the type of card being used, and where you are located. Typically, there is a fee for every credit card transaction processed through the gateway.
The payment gateway must be PCI compliant to ensure that vendors are protected from fraudulent transactions.
A secure connection between the gateway and your server is important so that all data is transmitted securely.
The time it takes to complete a transaction can also affect how much you pay in fees. Choose a payment gateway that allows you to process transactions quickly to keep more cash in your pocket.
There are plenty of other factors to consider when choosing a payment gateway, so make sure to do your research before signing up with any company.
At SecurePayGlobal, we also provide additional features like fraud prevention tools and recurring payments.
Conclusion – Accepting Payments with a Gun Dealer Merchant Account
When applying for a gun dealer merchant account, do not settle for overpriced transaction rates. Also, avoid payment processors using outdated equipment that criminals can easily hack.
Ensure that you ask questions about payment fees and read contracts carefully, the fees that providers want to keep away from you are usually hidden in lengthy contractual agreements.
Select a high risk payment services provider that values a long-lasting partnership over making a quick buck. The merchant account provider must be able to provide you with a customized blueprint with your business in mind.
Lastly, ask if your merchant account type can be looked at in the future. Find out if there are any legal limitations forced on the gun dealer merchant account either by state or federal laws.