After the Coronavirus pandemic, most businesses globally have adapted a remote working model. With endless Ecommerce stores on the rise, finding a good payment processor with the perfect pricing still remains a task. Credit card payment processing is easy to find for normal merchants and retailers. However, if your business is deemed high risk, then things may be different.
Adult store owners, travel and tourism, marijuana and CBD, expensive subscription services, firearms, and guns industry, etc., are common high-risk businesses, and most payment processors have certain terms and conditions for working with them.
There are certain processors like Wizopay, which offers firearms payment processing at affordable rates and provides many other benefits. In this blog, we will take an in-depth look at everything associated with firearms payment processing, issues faced by the industry, choosing the right processor, and applying for a merchant account. Read further to know more.
Research showed that there are over 300 million firearms currently in circulation, and as consumers are moving to e-shopping, firearms merchants’ demand for credit card processing portals is increasing. When a payment provider opens a firearm merchant account, the dealer’s account is tied to top card providers like American Express, Discover, Visa, Mastercard, etc. The payment processor will handle the account on behalf of the dealer and offer payment services and transaction data reports.
A firearms merchant account can help accept both online and retail point-of-sale payments. The payment getaway builds a secure link between the concerned payment provider and the merchant’s online store for card-not-present transactions. Hardware and software used for payment authorization are provided by your payment processor, and different processors have their own prices, services, and terms and conditions.
It is not easy to be an online firearms dealer, and there are many issues they face while looking for a trustworthy credit card processing company.
Before setting up your gun retail store or online shop and opening a merchant account, you need some valid documentation for verification purposes.
You need a Federal Firearms License (FFL) issued by the BATFE Bureau of Alcohol Tobacco Firearms and Explosives. The FFL is necessary for both interstate and local transactions. Based on your business, your type of FFL license will vary.
To receive an FFL from the BATFE, you should pass the following requirements:
ü Your age must be 21 years or older than that
ü No prior history of Gun Control Act violation
ü You must have a licensed location for opening a store or collecting payments
ü You must not be prohibited from possessing, handling, or using firearms and ammo
Once you receive a valid FFL, you need to follow these standards:
After this, you can conduct business freely and apply for a merchant account. Here are two things that you still need to know.
The National Firearms Act restricts certain types of weapons. If you want to sell, import, or manufacture such firearms, you must pay a Special Occupation Tax.
You must have proof of BATFE rules compliance to open a merchant account. Before selling arms to a non-licensed person, you need to do a NICS background check with the FBI. This ensures you do not sell guns to anyone who is prohibited from using firearms or has a prior criminal record.
If you stay compliant with all rules and do business properly, you will surely get a merchant account easily and can receive payments without any hassles.
Those payment providers with a friendly stance towards the firearms industry offer merchant account services to land-based gun shops, online gun stores, and FFL dealers. However, they are not limited to these and offer services to other related businesses also.
Top providers like Wizopay are open to serving Ammunition providers, Tactical Supply stores, Firearms manufacturers, accessories, and component providers, Military Supply Stores, Gun Clubs, Shooting Ranges, Non-Firearm Weapons, CCW Classes, Training Services and Classes, Firearm Lifestyle, and Apparel stores, Pawn Shops, Police Supply stores, Guns America, Gun Broker, Armslist, etc.
All merchants and dealers associated with the guns industry can apply for a merchant account and take advantage of high-quality, secure payment services. Payment providers will reduce fraud and minimize payment risks for your arms store. Firearm dealers in the following situations benefit the most from high-risk merchant accounts.
Once payment is made at POS or online through a credit card, the authorization process starts at the merchant location and goes through multiple financial organizations. The payment processor works in tandem with the customer’s credit card issuer bank and the acquiring or merchant’s bank.
The payment getaway captures the credit card information and other transaction details used for the payment and enters them in a secure file. This file is sent to the issuer card’s bank network by the merchant’s bank. The issuer bank runs many security checks and confirms the authorization. If the transaction is approved, the merchant receives a transaction. In case of rejection, the merchant receives a response code with reasons explaining the rejection.
The merchant then finalizes all payment authorizations and tells the total sum to his payment provider. The next morning, the money is sent from the customer’s bank and reaches the merchant’s account within 48 hours.
When you partner with a high-quality payment provider, you can choose from multiple credit card processing solutions for both online or land-based stores. Choose the one that suits your business the best and get started as soon as you can.
If you run a firearms store, then opening a merchant account won’t take long. You must have the necessary documents and license before you send your application. Follow these steps:
Once your account is set up, you can accept payments from customers safely
WizoPay offers reliable and trusted payment processing for high-risk firearms dealers and online stores. If you are on the lookout for a payment provider, feel free to get in touch and open a merchant account here. We offer the best services for your business.
WizoPay is able to integrate and work with many top firearms POS and retailer software, including GunBroker, AIMsi, Elliott Firearms Software, Firearms Management Systems, Gun StoreMaster, Epicor FFL Manager, Rapid Gun Systems, etc. Your merchant account can also be integrated with CRMs like Authorize.net.
WizoPay aims to make your business a success and protect it from fraud. You will experience ease of receiving payments from your customers anytime, anywhere. Use the Secure Merchant Portal and access your account anytime.
Track and Manage Payments through WizoPay Secure Merchant Portal
You can access your firearms merchant account any time of the day through the Merchant Portal and keep an eye on everything.
Chargeback Management: Manage chargebacks better and work on reducing them. Receive custom alerts and secure the necessary documents for chargeback investigation. The merchant portal will tell you what to do at the right time.
Accept payments anywhere: Have unlimited access to the virtual terminal and receive payments anywhere on the go.
Check online reports: Check reports for deposit data, sales volume, transactions, etc.
Track transactions and revenue: Track transactions and sales revenue whenever you want.
Guns and firearms are related to violence and crime, which makes life hard for firearms dealers, both retail and online dealers. With the rise in online shopping, gun dealers are finding it difficult to open merchant accounts because of the risks involved in the industry.
In the above blog, we read why is the firearms industry considered high risk and the process behind opening a firearms merchant account for payment processing. You need a valid license and other documents for opening an account, but once it is approved, you will have access to top payment processing features.
Receive money from anywhere, manage chargebacks better, and reduce customer fraud. Whether you own an established gun store or are a firearms startup, there are many friendly payment providers like WizoPay who can help you out. Open your merchant account with the right provider and streamline your firearms payment processing.