Credit Card Processing
Secure Payment Gateway

34 years in bus logo
How Credit Card Processing Works in the Firearm Industry

If you’re just starting to take your first steps into the firearm dealing industry, you are probably already running into many extra hoops that you need to jump through just to get your business off the ground. Being able to process your customers’ credit cards should be one of your top priorities as you get started, but it’s not as simple as you might think. We’re going to explain how credit card processing works in the firearm industry so that you can have a better idea of what to expect for each transaction.

Step 1: Authorization

The way that credit card processing works in the firearm industry isn’t all that different to other industries. The first step always involves your processing company getting in contact with your customer’s bank. In the firearm industry, authorization is even more important to ensure that your customer has the transaction on their record and that they meet all the necessary requirements for purchasing a firearm.

Step 2: Settling the Transaction

Once the transaction is authorized and you know for certain that a credit card holder is legitimate, the transaction needs settling. All this really means is that the transaction gets approved, even though no actual money has moved from one place to another. When a transaction returns as officially settled, the customer can leave your store with their firearm purchase or be assured that their online purchase is on its way to a nearby retail store for pickup.

Step 3: Transferring of Funds

This step could take a couple of days to fully go through, depending on your bank and the bank of the customer who purchased goods from you. The funds get transferred from the customer’s issuing bank through your payment processing company before they make their way into your merchant account for your business.

High-Risk Businesses

The sale of firearms has been deemed a high-risk business by payment processing networks and banking institutions. The firearm industry is no stranger to fraudulent charges or customer chargebacks, which is why many financial institutions consider the industry to be high-risk. Don’t let this moniker disturb you too much. Second amendment-friendly credit card processing doesn’t have to be any more of a hassle than any other retailer. As long as you make sure you work with a trusted provider of FFL merchant accounts, like Electronic Transfer, you shouldn’t have to deal with any major setbacks on your own.

Scroll to Top