FFL Transfer Process & Fees: What You Need to Know

An FFL transfer is the process required by law when you sell a gun across state lines. It’s most common in online firearm sales. As a firearms dealer, in addition to selling firearms, you can also offer FFL transfers between buyers and sellers. This guide explores what an FFL transfer is, which regulations you must follow as a firearms business, and how to structure your FFL transfer fees. 

• An FFL transfer is necessary when a firearm crosses state lines to a non-licensee, which is common in online firearm sales.
• FFL transfer fees typically range from $20 to $75. You can choose to bundle additional fees, such as firearm storage fees, shipping costs, or state-specific fees, into the price you set.
• The process of an FFL transfer requires running a background check on the buyer through the National Instant Criminal Background Check System or your state’s background check system.

What Is an FFL Transfer and Why Does It Matter?

FFL stands for Federal Firearms License. In the United States, you must obtain a federal firearms license to sell, import, or manufacture firearms legally. The term FFL may also refer to a holder of a federal firearms license or an FFL dealer.

An FFL transfer is the process of exchanging the possession of a firearm using an FFL-licensed dealer. This process is required when a firearm purchase crosses state lines or when an FFL dealer is involved (i.e., when a buyer purchases a firearm online). 

The Gun Control Act of 1968 requires an FFL to transfer firearms sold, gifted, or loaned across state lines to a non-licensee.^[1]Time. “How the Gun Control Act of 1968 Changed America’s Approach to Firearms.” Accessed September 4, 2025. Additionally, the National Firearms Act (NFA) set regulations for specified items, such as silencers or short-barreled rifles, which require their own specialized NFA transfer.^[2]Bureau of Alcohol, Tobacco, Firearms and Explosives. “National Firearms Act.” Accessed September 4, 2025.

Whether you sell firearms at a retail location or from your home with a home-based FFL, you need to understand the FFL transfer process, especially if you want to sell firearms across state lines or offer FFL gun transfer services. 

How the FFL Transfer Process Works: Step-by-Step

The process of an FFL transfer involves a background check, which may have different requirements for each state. There are six basic steps in the process of an FFL transfer.

Step 1: Receive and Log the Firearm

When a customer purchases a firearm requiring an FFL transfer, the seller sends the gun to you, the FFL dealer. The seller may be another dealer or an individual seller. When you receive the firearm, log it in your Acquisition and Disposition (A&D) records (also called a “bound book”).^[3]Bureau of Alcohol, Tobacco, Firearms and Explosives. “What Is a “Bound Book”?.” Accessed September 4, 2025. You have until the close of the next business day to record the receipt of the firearm. 

Step 2: Verify the Gun’s Eligibility

Next, verify that the gun is legally eligible for transfer to the buyer and that the shipping documentation matches the firearm. Generally, most firearms are eligible for transfer unless they are special items regulated under the NFA. Otherwise, the buyer cannot legally purchase the firearm.

Step 3: Fill Out ATF Form 4473

The buyer fills out an ATF Form 4473.^[4]Bureau of Alcohol, Tobacco, Firearms and Explosives. “Firearms Transaction Record.” Accessed September 4, 2025. This FFL transfer form requests basic information, including their name, address, and date of birth. Once the customer completes their portion of the form, you complete the dealer portion of the form.

Step 4: Perform a Background Check

Next, run a background check on the buyer through either the National Instant Criminal Background Check System (NICS) or your state’s background check system.^[5]Federal Bureau of Investigation. “Firearms Checks (NICS).” Accessed September 4, 2025.

If the NICS background check returns a “proceed” result, you can move forward with the transfer. However, if the background check results in a “delayed” status, you must wait three days, after which the NICS will deliver its final decision. If NICS does not render a decision within three days, it’s best to wait. However, federal law allows you to continue with the transfer after the three days are up under the “default proceed” rule. These default proceeds are prohibited in certain states, so you’ll want to review your state’s laws carefully.

If the background check comes back with a “denied” result, the buyer cannot legally obtain the firearm, and the transfer process halts. 

Step 5: Finalize the Transfer

Once the background check is complete, finalize any paperwork, accept payment for the transaction, and release the firearm to the buyer. For non-over-the-counter sales, you have seven days to record the transfer in your bound book. For over-the-counter transfers (i.e., immediate pickups), you must log them as soon as possible after the transfer.

Step 6: Retain Your Records

The law requires you to retain and safely store ATF Form 4473 and any FFL transfer paperwork for the life of your business. Once the documentation surpasses 20 years old, you can move it to an off-premises location. If the NICS denied the transfer, you only need to keep the paperwork for five years. 

If you end up closing your firearms business, you cannot simply throw away these records. You’ll need to hand over all forms and documentation to your local ATF office. 

When Is an FFL Transfer Required?

Federal law requires an FFL transfer any time a firearm is shipped across state lines, is transferred between two FFL holders, or is sold by an FFL dealer. This includes most online gun purchases. The firearm transfer process requires you, the dealer, to maintain meticulous records, including:

• Recording the firearm’s serial number in your A&D log upon receipt and transfer (disposition) of the firearm
• Filling out Section D of the ATF Form 4473
• Retaining all FFL transfer records for the duration you are in business^[6]Bureau of Alcohol, Tobacco, Firearms and Explosives. “Federal Firearms Licensee Quick Reference and Best Practices Guide.” Accessed September 4, 2025.

If you’re shipping firearms out of state, the FFL-to-FFL transfer requirements include:

• Filling out Section D of the ATF Form 4473 to perform a background check
• Recording the firearm’s serial number in your A&D log when you transfer the firearm
• Retaining all records for the duration you are in business

Violating any of the regulations regarding an FFL transfer can result in fines and the possible suspension of your license. 

State-by-State Rules That Can Impact Transfers

Many states have their own laws and guidelines regarding the FFL transfer process. For instance, 26 states, including Alaska, Idaho, and Texas, don’t require FFL dealers to perform background checks when the purchaser has a concealed carry license.^[7]US Concealed Carry. “Which States Require Background Checks?” Accessed September 4, 2025. Additionally, the waiting period for background checks is longer in some states, such as Hawaii, which sets a 14-day minimum waiting period for buying a gun. 

Several states, including California and Connecticut, require FFL dealers to perform background checks even for private sales. To ensure you’re adhering to not just federal U.S. gun laws, but also state-level regulations, check your state attorney general’s website. 

For Buyers: What Is an FFL Dealer & How To Choose the Right One Near You

To initiate an FFL transfer, a customer must contact an FFL dealer. An FFL dealer may be a gun shop owner or gun dealer who holds a federal firearms license. To find an FFL dealer, buyers can use several resources:

• ATF: The most comprehensive database of FFLs, which buyers can search by zip code
• Armslist: A comprehensive online gun marketplace for firearms and firearm services
• GunBroker.com: An online marketplace for buying and selling firearms
• FFLs.com: An online platform that allows buyers to search for FFL holders and access publicly available ATF information

Once a buyer finds a dealer they’d like to use, they should contact the dealer to verify that they possess an active FFL license. When buying or selling a gun, it’s important to use a licensed dealer to ensure a legal and safe transfer. 

FFL Transfer Fees: What’s Included and What Affects Cost?

The FFL transfer fee is what you charge to cover the time and effort you put into facilitating a transfer. Essentially, the buyer pays you to fill out paperwork, store the firearm, conduct a background check, and ensure compliance with all applicable laws. 

The average FFL transfer fee ranges from $25 to $75, depending on the state, firearm, and transfer type. For instance, an NFA transfer of a strictly regulated item, such as a silencer, can exceed $100. As a dealer, you can charge specialized fees for extended storage, separate background checks, or state fees.

FFL transfer costs can increase when you bundle other services. For instance, an $80 fee may include the transfer plus the cost of shipping the firearm to the buyer. 

As a firearms dealer, a merchant services provider can help you process your FFL transfer fees, manage your overall cash flow, and remain compliant with all financial laws. 

In most cases, the buyer finds an FFL dealer and pays for the transfer. The seller ships the firearm to the buyer’s chosen dealer. 

Common Misconceptions About FFL Transfers

One of the most common misconceptions about FFL transfers is that they are a form of gun registration. This is not the case. The only information exchanged during a transfer is the firearm’s make, model, and serial number, as well as the buyer’s name and address.

Another common misconception is that transfers are only for businesses. However, private individuals can request an FFL transfer if they’re buying a gun from an out-of-state dealer or selling one to an out-of-state buyer. In some states, the law requires FFL transfers even for in-state transfers of firearms. 

Finally, some people incorrectly believe that an FFL is not necessary when you are gifting a gun. However, the FFL transfer process may still be required depending on state laws or if you’re shipping the firearm across state lines. 

FFL Transfers for High-Risk or Regulated Sellers

The FFL transfer process ensures that firearms move safely and legally from one owner to another. In the highly regulated firearms industry, careful planning, attention to detail, and adherence to state and federal firearm transfer laws are essential to offer this service to your customers.

As the owner of a firearms business, you may find that complying with FFL transfer regulations is not the most difficult challenge, but rather the financial process is what’s daunting. Because the firearms industry is often considered high-risk, many financial institutions won’t work with you, leaving you to manage your transactions and accounting alone. 

With a supportive payment solutions provider, you can easily accept secure payments and collect FFL transfer fees. PaymentCloud has a solid track record working with high-risk businesses, including firearms sellers. Our system is easy to integrate directly into your website, allowing you to start processing payments quickly and securely. 

Ready to simplify payments and FFL transfer compliance? Check out our firearms industry payment processing services. 

Whether you’re a completely new business, or a seasoned veteran looking to elevate your payments, we’re here to help.

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