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Like any other profitable business, the success of a company in the industry of firearms depends on being able to make the purchasing process as easy as possible for their customers.
Whether it means having an easy to navigate store or ensuring customers have flexibility when it comes to paying for their purchase, making customers as confident and relaxed as possible when shopping with you is of the utmost importance. Unfortunately, for firearms retailers, acquiring payment services for their company can be very difficult.
Finding a payment process service that your business can rely on is critical to ensure success. Due to the firearms industry being considered a high-risk sector because of state and federal regulations, many traditional banks and financial institutions will not offer their payment processing services to firearms businesses.
The good news, however, is that if you need a reliable credit card processing partner for your firearms business, there are several solutions at your disposal.
If you’re thinking about partnering with a merchant account provider to help your business, here are a few things you should consider.
Before creating a firearms merchant account, it’s crucial that you fully understand the laws surrounding operating an online firearms store. While it is entirely legal to purchase firearms over the Internet, federal regulations prohibit the shipment of serial numbered parts or firearms directly to out-of-state consumers.
Firearms are required to be transferred to a Federal Firearms Licensed (FFL) dealer in their same state of residence, and the buyer will have to fill out a 4473 Form and undergo a background check as required by federal law.
While individual states have their own laws regarding the sale of firearms, this step is essential. Without this license, you cannot conduct any business. If you are not already a federally licensed firearms dealer through the ATF, you must complete the paperwork necessary to do so.
As mentioned, firearms retailers have an uphill battle when it comes to selling their products online, despite the fact they may be the same products they sell at their physical retail locations. In some cases, credit processors may only provide their services to merchants with an extensive sales history and documentation to prove they have a sustainable business model.
Mainly, credit processors want to know that your company receives a consistent flow of income and that you have a history of paying your creditors on time before they make any decision regarding approval.
A chargeback occurs when a cardholder disputes a charge with reasons varying from fraud, dissatisfaction, or failure to recognize a charge on their billing statement. As a firearms retailer, you are more susceptible to chargebacks, which means you must take the necessary steps to minimize the potential of them occurring.
This includes providing a clear and easy-to-find return and refund policy, as well as providing a clear description of your business on each of your customers’ billing statements to clear up any confusion.
Once you understand the laws involved with the online sale of firearms, finding a high-risk merchant account provider you can trust is essential. During this process, you will need to submit the following:
Firearms merchants with no outstanding debt, consistent income, and a good credit score are more likely to be approved by most merchant account service providers.
If you’re ready to start the firearms merchant account process, apply with us today, and we will get you in business by tomorrow.
