It’s safe to say that guns are part of American culture. As the firearms industry continues to make impressive contributions to the economy, firearms dealers, still have a difficult time getting approved for merchant accounts for accepting firearms payments. SecureGlobalPay, with its vast network of acquirers, has processing solutions in place to assist most hard-to-place merchant types, including those specializing in merchant firearms sales.
The majority of Americans that purchase guns are motivated by the need to protect themselves and their families. The growth of shooting sports has also increased firearms sales in the US, and worldwide.
Many laws and regulations control the manufacturing and sales of guns and firearms. Even with tight laws and business restrictions, firearms merchants still reap huge profits from gun sales.
Firearms and Ammunition Payment Acceptance Challenges
One of the many challenges these business owners face is accessing robust credit card payment processing solutions. Even when possessing a Federal Firearms License (FLL), merchants still have a hard time getting approved for merchant services.
Non-cash payment methods have become the mainstay for both online and retail businesses. Credit card processing, e-Check, and ACH are the most preferred ways of accepting payments from clients in all industries. The payment processor you choose will have a significant impact on your business operations.
Why Guns and Ammunition are Considered High Risk
The Second Amendment of the US constitution outlines the right for citizens to bear arms. Still, there is a continuous, ongoing effort to regulate every aspect of this industry by government agencies not interested in what the constitution states.
As a result, banks, payment networks, and other financial institutions consider merchant firearms sales a high-risk business. Many financial institutions still fear the impact of politics and bureaucracy on their business models. These lower-risk acquirers simply shay away from guns and ammunition merchant sales and will not permit electronic payments for guns.
Thankfully, there are no signs that gun sales to civilians will end anytime soon.
Firearms Merchants – Chargebacks, Fraud and Reputaional Hazards
Data shows that gun payment processing is at a higher risk for chargebacks and returns. Additonally, brand reputation hazards are at stake for many gun manufacturers. Firearms merchants claiming to be authorized dealers of a particular brand have been known to sell counterfeit products.
Fraud is another crucial reason payment providers may refuse to work with you. In addition to local state and federal laws dictating who merchants can sell and ship to, strict KYC and identity confirmation rules must be followed.
Firearms sales can easily result in legal problems and financial liabilities for payment processors if they are not careful. Payment processors such as Square, Stripe, PayPal, and Braintree have outrightly banned gun and ammunition transactions.
The few high-risk merchant account providers that facilitate processing for merchant firearms do so very carefully. They can possibly impose any of the following, should the terms and conditions of the merchant account not be met.
- Higher Fees
- Payment interruptions
- Payout Freezes
- Unfair terminations
- A limit to transaction volume
- Limited payment options
Finding Suitable High Risk Merchant Firearms Payment Processing
Your ideal high-risk payment processor should provide affordable, reliable, secure “high-risk” payment services. There are several features to look out for when selecting a suitable payment processor:
- Affordable charges
- ACH Processing
- Chargeback prevention and dispute settlement
- Merchant cash advance services
- Secure payment gateways
- Fast payment approvals
- Phone and mail order processing
- Website integration
- Friendly services
As you know, it is difficult to find a merchant account provider that provides all desired features and benefits. Occasionally, you will have to decide on what is most important to your business just to get approved and, up and running.
SecureGlobalPay Firearms & Ammunition Merchant Services
SecureGlobalPay has many years of experience processing credit card payments for high-risk businesses, including FFL businesses selling Firearms and Ammunition. Our state-of-the-art secure payment gateway with intelligent transaction routing helps ensure the seamless operation of your firearm business when processing multiple merchant accounts at once.
While understanding FFL compliance, we are also familiar with local state provisions. We will tailor our credit card processing solutions to meet the specific needs of your firearms and accessories business.
Apply now for high-risk merchant firearms and gun accessories merchant account in a few steps. Our 24 support and simplified application processes will help ensure a quick review of your merchant application. Click here to get your merchant firearms credit card payment service now.