The firearm business is booming due to purchases for recreation and home defense, and many are looking to get into this thriving industry. A difficulty that gun and ammo retailers have to navigate is getting approved for credit card purchases.
Many gun sellers are looking to be able to use a merchant account for credit card purchases at gun shows and in the online space. This proves to be especially difficult for gun and ammo retailers because their businesses are deemed “high risk.” The firearm industry is labeled high risk because of the following:
Many gun sellers are looking to be able to use a merchant account for credit card purchases at gun shows and in the online space. This proves to be especially difficult for gun and ammo retailers because their businesses are deemed “high risk.” The firearm industry is labeled high risk because of the following:
- Possible future changes in gun regulations
- Increased chargeback rates
- Prevalence of fraudulent purchases
- Large transaction values
These obstacles do not make having a gun or ammo business a futile cause. There are many high-risk merchant account providers that specialize in finding credit card processing solutions for high-risk gun and ammo retailers, such as Leap Payments. The FDIC has stringent regulations on getting a gun & ammo merchant account, but it is possible to obtain one for a reasonable price so long as you follow the law to the fullest.
Follow ALL Federal and State Gun & Ammo Merchant Account Laws
Make sure you know all the state and federal laws that apply to your business, and perform background checks. Even if you are not required to do a background check, it is most advantageous to you getting a gun & ammo merchant account to have no instances where you are flagged for not performing a background check.
Stay Off the Terminated Merchant File List
The TMF is essentially a “black list” of businesses who have been flagged for money laundering, too many chargebacks, fraudulent purchases, identify theft, or any other transactions deemed illegal. Be warned: this is readily available to most of the larger credit card companies out there. To stay off the list, keep your business honest. If you end up on this list, contact your merchant services provider to figure out a solution.
Keep Your Credit Debt Low
Just as in every business, securing a gun & ammo merchant account is easier to attain when you have a low amount of debt on your company cards. This credit to debt ratio is something that merchant services companies look at very closely to deem how much of a risk your business really is.
Avoid Having Excessive Chargebacks
Unfortunately, the gun industry is known for having a high rate of chargebacks. In order to secure a merchant account, do everything in your power to minimize this as much as possible.
Leap Payments has vast experience working with high-risk ratings, and our #1 credit card processing company rating speaks to that. If you want a merchant account with reasonable rates and forward-thinking credit card processing solutions to keep up with the digital age, look no further. We can set you up with card readers and an online processing program while you focus on making your business thrive.
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