Firearms are a popular online business, and Gunbroker is one of the best places to buy and sell them. Unfortunately, firearm sales is not an industry that most payment processors or payment gateways can service. To sell on Gunbroker, FFL dealers will need a specialized payment gateway to handle their credit card firearm sales.
It is important for all FFL Dealers to understand the essential features of a payment gateway for firearms, how much it costs to sell on Gunbroker, and how quickly you’ll be paid following a sale.
If you’re considering selling on Gunbroker and experiencing trouble locating an online payment service that will accept firearms is a common problem faced by many FFL dealers.
Gunbroker Payment Gateway Table of Contents
Having researched firearms and the various payment gateway and merchant processing services that partner with firearms dealers, the information below will help clarify reliable payment solutions.
Do You Need a Payment Gateway for Gunbroker?
A payment gateway is a web application that aids in processing credit card payments and other electronic payments, securely transmitting payment information between the buyer, seller, and financial institutions. Without a gateway, dealers will be unable to process online sales and unable to receive payment from their merchant-acquiring bank.
Firearms sales are heavily regulated at the federal, state, and local levels. This level of scrutiny and potential liability is a deterrent for most payment service providers and gateway service companies. Partnering with a payment gateway specializing in online firearms transactions can help ensure reliable merchant services when the FFL dealer fully complies with all laws and regulations. A payment gateway provides a secure way to process payments, protecting both the buyer’s account information and the seller’s financial transfer of funds.
Payment Gateway Features for Gunbroker
Gunbroker, an auction site for firearms, ammunition, and related accessories, requires a payment gateway that complies with applicable laws and regulations related to firearms sales while securely integrating into their platform. A firearms merchant account is managed by a specialist in higher-risk industries and knowledgeable about FFL laws and regulations. When comparing payment gateways for Gunbroker, some thoughts to keep in mind include the following:
Integration with Gunbroker: Compatibility with Gunbroker’s platform will allow for seamless integration into the online marketplace. Payment gateways unable to integrate are inoperable.
Compliance with Federal, State, and Local laws: The payment gateway should comply with all applicable laws and regulations related to firearms sales. This means that the gateway should have the means to collect information about age, background checks, and other requirements specific to firearms sales.
Security: The payment gateway should have robust security features, including encryption and fraud detection, to protect the buyer and seller’s financial information. A secure SSL connection will help keep you and your business safe.
Payment Methods: The payment gateway should support various payment methods, including credit cards, debit cards, and electronic checks. Customers have different online payment preferences, and a gateway should reflect the merchant’s desire to make the customer experience as easy as possible.
Quick Settlement: The payment gateway should settle transactions quickly and efficiently, allowing merchants to receive payment promptly. When researching gateways, understanding these timelines can help to predict cash flow accurately. Most gateways can batch transactions to meet the merchant account’s daily cutoffs.
Customer Support: The payment gateway should have responsive and knowledgeable customer support staff to help resolve any issues or questions. With any advanced software program, there may be more questions and hurdles than merchants might expect as they process transactions.
Gunbroker also has its own policies and regulations for its dealers and sellers. Take the time to educate yourself on both the payment gateway and Gunbroker guidelines for firearm sales.
How Much Does It Cost to Sell Firearms on Gunbroker?
The cost to sell on Gunbroker varies depending on the type of seller account and the features and services you choose. To open an account on their platform is free, but to complete a transaction, there are a series of fees to close the sale. Below is a breakdown of the leading merchant fees associated with selling on Gunbroker:
Listing Fees: Using a basic listing, there is no cost to list an item on Gunbroker. For additional services, such as custom Titles and Sponsored listing, various costs are associated with the different features. Auction listings also have more options when listing products when compared to fixed-price items.
Final Value Fees: When an item sells, Gunbroker charges a final value fee based on the item’s final value. The fee is 6% of the first $325 of the selling price and 4% of the remaining amount above $325. These are billed to the seller by Gunbroker.
Payment Processing Fees: The seller’s merchant account provider will assess any payment processing fees associated with the card transaction. Gunbroker does not offer payment processing services at this time, thus requiring sellers to obtain payment services from a third-party provider.
Optional Services: Additional services, such as custom Titles and Sponsored listing, carry various costs associated with the different features. Auction listings also have more options when listing products than fixed-price items.
Fees and costs associated with selling on Gunbroker may change over time, and there may be additional fees and requirements for sellers based on state and federal laws and regulations. Therefore, it’s essential to review Gunbroker’s policies and fees carefully before listing items for sale.
How Long Does It Take to Receive Payment After a Sale on Gunbroker?
The time it takes to receive payment after selling merchandise on Gunbroker depends on several factors, including the payment method and specific payment processing service. If you use Gunbroker’s recommended payment processing service, provided by a third-party payment processor, merchants will receive a payment within two business days of processing the buyer’s payment. However, Gunbroker may hold funds for up to 21 days to ensure the transaction is completed successfully and there are no disputes or chargebacks.
If you use a third-party payment processing service compatible with Gunbroker, the time it takes to receive payment will depend on the service’s policies and processing times. When choosing your processor, look at timelines and review the settlement terms. Most processors now offer same-day ACH of expected settlements (for a small fee) as an added feature of their services.
In general, it’s recommended that sellers on Gunbroker communicate with buyers promptly after a sale and provide clear instructions on how to complete the payment process. This can help ensure payment is received quickly and efficiently without unnecessary delays.
Firearm Payment Gateway Options
Several firearms payment gateways specialize in processing transactions for firearms and related products. Here are some of the most recognizable names in the firearms payment gateway industry:
- Allied Payment Gateway
- Network Merchants
- Authorize.net
- TSYS
- USAePay
This is a concise list of payment gateways listed on Gunbroker’s website for you to choose from. We recommend researching each to decide the best fit for your firearms business. Every merchant has different needs, and their buyers use different forms of payment. Researching several gateways before making a choice can make your business more efficient and more profitable.
Choosing a payment gateway that offers multiple industries and is compatible with other platforms is ideal. For example, Allied Payment Gateway is compatible with Gunbroker and can also be used on WooCommerce. This can be essential if you sell products or services on multiple sites or platforms.
