Gun-Friendly Credit Card Processing

Likelihood of chargebacks

The gun and ammunition industry tends to have more chargebacks compared to other industries.

High possibility of fraud

Weapon purchases paid for with a credit or debit card cannot always be definitively traced back to the buyer, which makes this industry an attractive target for fraudsters.

Legal and financial liability

Many acquiring banks usually do not service gun businesses to avoid being associated with gun law disputes over gun purchases.

High ticket sales

The average price of a firearm can range from several hundred to several thousand dollars. A payment dispute of that size can impact your cash flow, increasing the likelihood of your business defaulting on payments.

Benefits of a Gun-Friendly Credit Card Processor

While businesses operating in other industries may turn to payment service providers—such as Stripe, Square, and Paypal—for credit card processing, these companies don’t extend their services to firearms businesses. That said, firearms businesses must rely on traditional payment processors in order to accept payments. However, processors unfamiliar with the firearms industry can hinder your operations more than they help.

Below is a list of issues firearms merchants often encounter when partnering with a payment processor unequipped to meet the demands of their industry:

1. Account closure: Your merchant account can be closed by a payment processor without warning if they identify it's being used to sell firearms or related accessories.
2. Frozen funds: If your chargeback ratio is too high—a common occurrence in the firearms industry due to higher transactions being processed less frequently—your funds can be frozen for up to six months.
3. Cash flow problems: If your funds get tied up for months on end, it can be difficult to keep your business afloat. And cash flow problems are the number one cause of small business closures.
4. Loss of income: Many gun and ammunition customers require flexible payment options to afford their big-ticket purchases. If you can’t accept credit cards, you may lose out on sales to firearms customers without the available cash to afford their purchase.

What to look for when choosing a firearm-friendly processor

When choosing a firearm-friendly payment processor, consider the following:

1. Honest sales practices: Read reviews to understand how practices translate to actual experiences with the processor.
2. Specialities: Most payment processors do not support businesses in the firearms industry. Be sure to pick a processor that does.
3. Transparent onboarding and underwriting process: Every payment processor has to do their due diligence to vet your business, however, this process should be transparent. How the processor treats you during onboarding is often how you can expect to be treated throughout the lifetime of your account.
4. Personalized customer service: If you run into an equipment problem, technical glitch, or funding issue, the customer support team should be immediately available to assist you.

Online

If you plan to open an online firearms, accessories, or ammunition business, you need an eCommerce merchant account. Once approved and integrated into your website, you can easily accept payments on your eCommerce site.

Retail

If you plan to operate a brick-and-mortar location, you need a retail merchant account. This type of account typically includes either a point-of-sale system or a stand-alone terminal.

Over-the-Phone

If you plan to take payments over the phone, you need a MOTO merchant account. An over-the-phone or MOTO transaction requires a payment gateway, through which you input the transaction data.