Simple Gun Friendly Transactions for High Risk Merchant Accounts

Some businesses, like gun shops, are seen as risky in the business world. If you’re the owner of such a “high risk business”, you will likely understand the unique challenges involved in managing transactions. 

This article will help you smoothly manage transactions and follow the law by picking the best gun friendly merchant account provider. Keep reading. 

The High Risk Merchant Account 

Being labeled as “high risk” doesn’t mean you cannot do business. High-risk merchant accounts are specifically designed for gun sellers and tailored to support and mitigate potential issues.

Choosing a trustworthy firearms-friendly company is essential to provide the necessary services and to protect them and their businesses. 

Electronic Transfer, with over 30 years of experience and an A+ rating from the BBB, is a premier FFL merchant services provider. Here are the criteria for outstanding merchant account services that we suggest you consider when choosing a partner:

• Seamless sales: Transactions are processed smoothly without any location restrictions.
• Financial security: Ensure complete financial protection through secure transactions.
• Customer satisfaction: Prioritize payment flexibility by offering multiple payment methods such as cards, checks, gift cards, coupons, and cash.
• Online security: Our FFL merchant services provide secure online billing, create payment histories, issue payment receipts, and support mobile operations.

To obtain an FFL Merchant Account, the process begins with an online application. Along with a secure website, FFL traders need to provide specific documents to processors and underwriters, including:

• Valid government ID like a driver’s license or passport
• Bank letter or voided check
• 3 months of recent bank statements
• 3 months of recent processing statements (if applicable)
• Social Security Number or EIN (Employer Identification Number)
• A chargeback ratio below 2% is required.

The Importance of Gun-Friendly Merchant Account 

Many major eCommerce platforms and payment processors have restrictions or outright refuse to do firearms transactions. Therefore, sellers have to partner with companies that understand the industry’s needs and support Second Amendment rights.

Choosing the right payment processor is about more than just finding one that allows gun transactions. It’s about finding a partner that has experience in the industry, robust compliance measures, and offers a variety of payment options.

When choosing a gun-friendly merchant account provider, there are key factors to keep in mind:

• Experience: Opt for a company with experience in working with firearms businesses, and understanding industry regulations like age restrictions and background checks.
• Compliance:  Check that the company follows federal and state regulations, including laws like the Brady Handgun Violence Prevention Act and the Gun Control Act of 1968.
• Payment options: Look for a gun-friendly merchant account partner that accepts major credit/debit cards and alternative means of payment
• Chargeback protection: Select a partner who offers chargeback protection since firearms sales often have a higher percentage of chargebacks.
• Security: Prioritize a firm that emphasizes encryption and tokenization as safeguards to secure sensitive customer data.
• Pricing:  Look for someone who offers a pricing structure that has competitive rates and transparent fees.

 It’s important to also consider services that directly benefit you as the client such as: 

• Dedicated account managers: Having a single point of contact, who understands your business, can make a significant difference as they provide personalized service and quick resolutions to any issues.
• Advanced reporting tools: Access to detailed transaction reports and analytics can help you track sales trends, manage inventory, and make informed business decisions.
• Compliance assistance: Given the regulatory environment of the firearms industry, a provider that offers assistance with compliance matters can be invaluable because ….
• Technical support: Reliable technical support for any payment system issues is crucial to minimize downtime and maintain business continuity.

Compliance and Regulations

Firearms dealers must navigate a complex web of federal and state regulations. The Brady Handgun Violence Prevention Act and the Gun Control Act of 1968 are just two examples of legislation that has affected how guns can be sold and who can buy them. A gun-friendly payment processor must guarantee that all transactions comply with these laws, helping dealers avoid any potential legal pitfalls. 

Electronic Transfer offers a payment gateway specifically designed for gun broker transactions, ensuring compliance with all relevant firearm laws and regulations statewide and at a federal level as well.

Security and Chargeback Protection

In the firearms industry, where transactions are closely scrutinized and the potential for disputes is high, implementing robust security measures and chargeback protection is a necessity. 

Here are a few examples of how firearms merchants can create a secure transaction environment that minimizes the risks of chargebacks and builds trust with customers:

1. Prioritize data security:
   • Use encryption to safeguard customer information.
   • Implement tokenization to replace sensitive data with unique identification symbols that retain all the essential information without compromising security.
   • Regular updates to security protocols to keep up with evolving threats.
2. Transparent customer communication:
   • Clearly described product details, return policies, and shipping information prevent misunderstandings.
   • Provides easier access to customer service which quickly resolves any issues that may arise.
3. Detailed Record-Keeping:
   • Detailed records of transactions, customer interactions, and delivery confirmations.
   • Use these records to dispute chargebacks with concrete evidence.
4. Chargeback alerts and prevention tools:
   • Chargeback services notify merchants of chargebacks, allowing for proactive resolution.
   • They can also help analyze transaction data to identify patterns that may lead to chargebacks.
5. Employee training:
   • Well-trained staff not only handle transactions more competently but they can recognize fraudulent activity better and more often.
   • Employees who are knowledgeable about firearms regulations can help customers more efficiently.
6. Customer verification:
   • Stringent customer verification processes, such as age verification and background checks, that are in line with legal requirements make your business seem more professional and trustworthy.
   • Address verification services (AVS) help confirm the legitimacy of the billing address.

Wrap Up

Setting up the proper payment processing system for firearms dealers involves careful consideration of various factors, including high-risk merchant accounts and selecting the best gun-friendly merchant account provider. 

It’s also important because choosing the right services ensures smooth, secure, and compliant transactions. If you need help or have any questions about the process, feel free to contact us anytime.