Starting a firearm business is not so difficult. All you need is to get the necessary licenses, gather resources, become a reputable firearms dealer, and you’re ready to go. However, getting firearm merchant accounts is not as easy.
Firearms are regulated. There are strict laws regarding the buying and selling of guns. Therefore, banks and other financial institutions are hesitant to provide merchant services to businesses in the firearms industry.
In this article, we will discuss how to get a firearms merchant account. We will also provide tips on keeping your account in good standing. This will help your firearm and scope business thrive since you will have a dependable way to accept payments.
Are Gun Dealer Merchant Services High-Risk?
Gun dealers handle vast amounts of cash and face a high chargeback rate. Therefore, they are considered high-risk by banks and other financial institutions.
Below is a list of things you need to do to get a firearms merchant account:
Get a Federal Firearms License
Getting a Federal Firearms License is the most important thing you need to do to get a firearms merchant account. This license is issued by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It allows you to engage in the business of manufacturing, importing, and dealing with firearms.
Understand the Laws in Your State
Each state has its own laws regarding the sale of firearms. You must understand your state’s laws before applying for a merchant account.
Research Your Options
There are a few options available to gun dealers when it comes to finding a merchant account provider. You can either go through a bank or an independent processor.
Below are a few tips to help you choose the right provider:
- Make sure the provider is willing to work with high-risk businesses: Not all merchant account providers are willing to work with businesses in the firearms industry. You need to ensure that the chosen provider is willing to work with high-risk businesses.
- Check if the provider has experience working with gun dealers: You need to make sure that the provider you choose has experience working with gun dealers. This will ensure that they are familiar with the industry and its regulations.
- Check reviews: You should always check reviews before you sign up with a merchant account provider. This will help you see what other businesses in the firearms industry have to say about the provider.
- Don’t go for the cheapest, go for the best: When it comes to merchant account providers, you get what you pay for. The cheapest option is not always the best option. You need to make sure that you choose a reputable provider with a good reputation in the industry.
Ensure Your Finances Are in Order
It is important that you have your finances in order before you apply for a merchant account. You should have a good credit score and a solid financial history.
Apply for a Firearms Merchant Account
Once you have done all the above, you can apply for a firearms merchant account. You will need to provide the provider with all of the necessary documentation. This includes your Federal Firearms License, state firearms license, credit report, financial statements, and more. Once you have submitted your application, the provider will review it and decide whether or not to approve you for an account.
Keep Your Account in Good Standing
Once you have been approved for a merchant account, you must keep your account in good standing. This means that you should ensure that you constantly pay your bills on time and keep your chargeback rate low.
Once you have a merchant account, you can accept credit and debit card payments. You can also accept ACH payments and eCheck payments. Make sure that you choose a provider that offers a wide range of payment options so that you can give customers the ability to pay in the way that is most convenient for them.