Firearms are far from uncommon in the United States. In fact, it’s estimated that around one in three households own at least one firearm, and there are approximately 8.7 privately owned guns for every 10 U.S. citizens. While the debate around gun control continues, the firearms industry continues to go from strength to strength. One thing that has changed, though, is the way that consumers want to pay for products.
As we move towards an increasingly cashless society, it is vital that businesses are able to process credit card payments. This requires a merchant account. Unfortunately, though, it is difficult for companies dealing in firearms to actually obtain a merchant account. Many banks will outright reject these businesses because the wider industry has a higher-than-average chargeback rate. However, with the right documentation and a knowledge of the laws around the firearms industry, it is possible to obtain a specialized high-risk merchant account and begin successfully growing your firearms business.
Understanding the Firearms Industry
First of all, it’s important to note that the sales of firearms are very strictly regulated under federal law. Anyone wanting to sell these types of products must either be a federally licensed firearms dealer themselves, or work directly with someone who is. Thankfully, applying for a license is relatively simple, and applications typically take less than 60 days to be processed. Until you have this license, you won’t be able to deal in firearms.
Once you have your license, you will need to ensure that you only deal with customers within your state. While it is perfectly legal to buy and sell guns over the internet, the law is strict on shipping any component with a serial number over state lines. You will also need buyers to fill out a 4473 Form, and conduct a background check on them. On top of this, you may be required to carry out additional checks if you operate in the states of Montana, Arkansas, or Louisiana. Other than this, though, there are few restrictions on private gun sales.
What Documents Do I Need To Provide With My Merchant Account Application?
At TailoredPay, we make it easier than ever for private firearms dealers to apply for a merchant account. With a 97% approval rate, even for businesses who have been turned down in the past, we can help you get set up for card processing in just a few days. As part of your application, you will need to submit:
A valid form of photographic ID, issued by the government, such as a passport of driver’s license
Bank statements covering the last 3 months
Your social security number (SSN) or employer identification number (EIN)
In order to give your business the best chance for obtaining a merchant account, and to maintain it once you have been accepted, there are a few more steps you can take. For one thing, it’s important to maintain a good credit score wherever possible. In addition, any debt should be kept to a minimum, and having some savings in the bank will further boost your chances.
It’s Time To Apply Today
If you’re ready to take your firearms business to the next level, then it’s time to apply for a merchant account with TailoredPay. We offer custom solutions for businesses of all sizes. Whether you are a small startup or an established empire, a collection agency or firearms dealer, we can help you to secure the payment processing that you- and your customers- need.
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