Securing credit card processing services that are firearm-friendly can be difficult for businesses in heavily regulated industries such as firearms and ammunition. If you are involved in the manufacturing, importing, or selling of guns or ammunition, it is crucial to find a credit card processor that supports your business needs.
Avid Merchant Services is a top provider of merchant accounts tailored for businesses in the firearms industry. With our expertise, experience, and specialized infrastructure, we are well-equipped to cater to the unique needs of firearm credit card processing. If you have been rejected or had your account closed by other processors, rest assured that Avid is here to support you!
 Firearms-related enterprises are required to comply with a multitude of regulations at both the state and federal levels. Consequently, engaging in the sale of firearms or associated accessories can potentially subject your business to legal and financial liabilities. Apart from the regulatory hurdles, payment processors often perceive firearms businesses as high risk due to the following contributing factors:
Likelihood of disputes
The firearms and ammunition sector is known to experience a higher rate of payment disputes in comparison to other sectors.
Potential for fraudulent activity
Transactions involving the purchase of weapons using credit or debit cards may not always be easily traced back to the purchaser, making this industry a prime target for fraudulent activities.
Legal and financial risks
Many acquiring banks opt not to provide services to firearm businesses to steer clear of potential legal entanglements related to gun transactions.
High-value transactions
Firearms typically come with a hefty price tag, ranging from hundreds to thousands of dollars. Disputes involving such large sums can have a significant impact on your cash flow, increasing the risk of your business defaulting on payments.
 Businesses in various sectors may utilize payment service providers like Stripe, Square, and Paypal for credit card processing, but these options are not available for firearms businesses.
Consequently, firearms merchants have to resort to conventional payment processors to facilitate transactions. Nevertheless, working with processors lacking knowledge of the firearms industry can impede your business operations rather than enhance them.
Account closure:
A payment processor has the authority to close your merchant account abruptly if they detect that it is being utilized to sell firearms or any related accessories.
Frozen funds:
In the firearms industry, it is common for transactions to be processed less frequently, resulting in a higher chargeback ratio. If your chargeback ratio exceeds a certain threshold, your funds can be frozen for a period of up to six months.
Cash flow problems:
When your funds are tied up for an extended period, it becomes challenging to sustain your business. Cash flow problems are the primary reason behind the closure of many small businesses.
Loss of income:
Customers in the gun and ammunition industry often require flexible payment options to afford their significant purchases. If you are unable to accept credit cards, you may miss out on sales to firearms customers who do not have immediate access to cash for their purchases.
Your firearms business will require a minimum of one of the merchant accounts listed, depending on the nature of your operations.
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.
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