How Firearms Merchants Can Get Credit Card Processing

Firearms merchants face different business obstacles than the business obstacles faced by merchants operating in other niches. This is especially true when it comes to processing credit card transactions in person, as well as online. Because firearms merchants are considered high-risk businesses, many credit card processors refuse to do business with them.

That is not the case with Double Helix. Not only do we open firearms merchant accounts for credit card processing systems; we also offer the best rates to encourage our firearms merchant client to do business with us for years to come.

The Fundamentals of Accepting Credit Cards

Every business that accepts credit cards must pay a processor to complete transactions. With each credit card transaction, there is a fee that the business must pay to the company that does the processing. The fee consists of three parts, which are markup, assessments, and interchange. Assessments and interchange represent costs that cannot be negotiated under any circumstance. The third part of the fee structure called markup allows for a little flexibility when it comes to setting the entire processing fee.

Why Most Processors Treat Firearms Merchants Differently

Most credit card processing companies use the same criteria for determining the high-risk level of a business.

• Frequent chargeback rate
• Operating an offshore business
• Selling a heavily regulated product
• Poor credit risk
• Higher than average ticket sales

Firearms merchants sell products that are heavily regulated, with each sale running much higher than average. Credit card processors also worry about gun dealers having to close their doors because of the violations of state and/or federal gun sales statutes.

Selling Firearms Online

You go online to order a big-screen television from a merchant such as Best Buy. You receive the big-screen television directly from a Best Buy warehouse. Although you are allowed to sell firearms online, the delivery system is more complex.

Every firearm you sell online must ship to a Federal Firearms License (FFL), which means the customer receives the purchased firearm from the FFL. Although credit card processing works the same way as it does if you shipped a product directly to a customer, the difference is the FFL has the right to charge a firearm transfer fee that the customer has to pay before receiving the firearm.

Some firearms merchants take care of the firearm transfer fee, which is another cost that eats into the bottom line.

Why the Reluctance?

Many credit card processors are reluctant to process credit cards for gun dealers for three primary reasons:

• Highly regulated business
• Online store
• Lack of credit history

Highly Regulated Business

Outside of the emerging Cannabis industry, no other industry receives more regulatory scrutiny than the firearms industry. Because of rapidly changing rules that pertain to selling firearms, most credit card processors refuse to do business with gun dealers. Another factor that weighs against firearms merchants is the court of public opinion, which can change to a more negative perception of gun dealers that leads to an increase in the number of strict regulations.

Online Store

It is not that credit card processors object to the online sales of firearms. The objection is all about a firearms merchant doing business exclusively online. Credit card processors prefer to do business with gun dealers that operate brick and mortar stores. Part of the revenue can come from Internet sales, but the business model should be focused on in-person sales.

Lack of Credit History

Job candidates fresh out of college deal with a dilemma called experience. They cannot find a job because they do not have any experience. The same dilemma affects gun dealers, albeit in a slightly different form. Credit card processors want to work with businesses that have established a good credit history. If you are a gun dealer just starting in the business world, the lack of a credit history can turn off most credit card processors.

Why Gun Dealers Turn to Double Helix

Double Helix understands the inherent risk of working with firearms merchants. We also do not shy away from gun dealers that make online sales the primary driver of revenue.

Here are several other reasons why firearms merchants turn to Double Helix for processing credit card transactions:

• Experience working with firearms merchants
• Favorable terms
• Customized processing solutions
• Prompt and knowledgeable customer service
• A comprehensive package of services

Proud to Work with Firearms Merchants

Gun dealers should not have to contact dozens of credit card processors that send the same negative message of “We’re not interested.” If you are a gun dealer that cannot secure a contract with a credit card processor, contact Double Helix to discuss the many credit card processing options that we offer. We enthusiastically approve the opening of merchant accounts for gun dealers at an affordable rate that does penalize your business for selling firearms.

All you have to do is call us at 727-873-0963 or submit the short online form to get the ball rolling on your firearms merchant account.

Just because you sell firearms should not mean you are not eligible to set up a credit card processing system. By following every state and federal law, you can start a long-lasting business relationship with the highly-rated team at Double Helix.