Selling merchandise on Gunbroker can be more challenging than on other non-firearm platforms. Sellers must maintain compliance by registering with Gunbroker by meeting all their criteria. At the same time, platforms struggle to find payment processors willing to provide services. Providing the most convenient payment methods is usually vital for sellers trying to make purchasing items as quick and straightforward as possible. Having few options will traditionally impede online sales, but this does not apply to the firearms industry.
Gunbroker Payment Options Account Table of Contents
Customers realize many of FFL dealers’ difficulties and understand that alternative ways to make payments online are necessary for the online firearms industry. On the Gunbroker website, only two preferred payment methods are listed; Credit Cards and USPS Money Orders. But, what are all the forms of payment available to sellers on Gunbroker?
Credit Card Payments on Gun Broker
To accept credit card payments as an FFL dealer on Gunbroker, you must have a compatible payment gateway with the platform.
Finding a payment processor and payment gateway pro FFL is the only way to accept cards on the platform. Due to the sensitive nature and all federal, state, and local laws governing them, firearm sales can be challenging, and many companies prefer to steer clear.
Several FFL firearms merchant account processing companies will work with all types of dealers, from startups to large corporations. Companies also have the option to use specialized e-wallet processors that accept higher-risk merchants, including firearms and accessories dealers. While easier to start, these accounts are generally much more expensive in the long term, with excessive fees to process otherwise nonexpensive transactions.
USPS Money Orders
Paying with money orders might appear odd for buyers today, requiring a money order to be sent through the mail to the seller before the merchandise is shipped. The difficulty of finding merchant services has resulted in this option becoming one of the most reliable and the other of the preferred payment methods for Gunbroker.
People unfamiliar with money orders might not understand the level of trust required when making this form of payment. Money orders are like checks, except the money is guaranteed to be paid, in this case by USPS, with no way to clawback payment in the event of fraud. This is why registering and having a seller rating is extremely important to attract buyers, especially when accepting money orders.
The advantage for sellers that accept money orders is that they don’t require a merchant account or payment gateway to accept payments. This is ideal for sellers wanting to sell one firearm but also works for larger FFL dealers wanting a safe, secure, low-cost payment solution. Accepting money orders is a more time-intensive transaction because it is not automated, but some sellers will view the upside of cash transactions over the ease of credit cards.
Other Payment Options for GunBroker
Aside from the aforementioned payment methods, sellers can offer customers more flexibility using a payment gateway that offers more than credit cards. Many of these gateways have additional payment integrations available for merchants looking to accept as wide a range of payments as possible. Below are some of the most popular types of payments used today for online purchases. Partnering with a Gunbroker-friendly gateway offering some options can help provide more reliable payment solutions for firearms transactions.
Debit cards: Debit cards are the most commonly used payment method today, accounting for roughly 60% of card transactions. Debit cards run on the same card networks as credit cards, making securing reliable payment services equally difficult. Fortunately, customers do not have to do anything different to enter a debit card into a payment gateway verse a credit card. Identical to credit cards, payment processors will charge merchants transaction fees for completing these transactions, but the convenience and speed of debit cards all but requires merchants to accept them.
E-wallets: E-wallets are virtual wallets that allow customers to securely store funds like a bank account and make payments online. Most mainstream e-Wallet solutions do not allow transactions with Gunbroker; other higher-risk wallet solutions can integrate and provide secure payment solutions.
Bank Transfers: Allowing customers to transfer money from their bank account directly to the seller’s bank account is a safe and reliable payment method. The electronic fund transfer (EFT) payment method encompasses e-checks, wire transfers, and ACH payments. Depending on the type of transfer, these funds can clear through various channels, arriving directly into the merchant’s bank account quickly, in some cases moments. These are very secure and reliable transactions and should be considered by all Gunbroker sellers.
Cryptocurrencies: Cryptocurrencies such as Bitcoin and Ethereum are digital forms of payment that offer a high degree of anonymity and security. Many arms dealers accept payment in crypto for these reasons, and transactions are irreversible, so there is no risk of customer disputes and chargebacks. All parties highly regard the anonymity of these transactions, but the day-to-day volatility of the currencies is something to factor in.
Prepaid Cards: Similar to a debit card, prepaid cards require funds to be present in their account to cover the transaction amount. Most prepaid cards run their transactions along the same card networks that debit and credit cards use, making their acceptance reliant on the payment processor, unless they operate in a closed-loop environment. These cards operate with the same ease as debit and credit cards, only requiring customers to reload them before use. Merchants will likely be unable to distinguish the type of card used. Unlike the checking account of a debit card, fraudulent activity can only occur in the amount on the card, eliminating the potential for customers to have large amounts of cash withdrawn.
Cash on Delivery (COD): This payment method allows customers to pay for their purchases when delivered to their doorstep. Identical to a USPS Money Order, where funds are collected at the time of delivery, and most of the risk falls on the seller instead of the buyer. Bank checks or money orders generally handle this form of payment.
How are Payments Processed on Gunbroker?
How payments are processed on Gunbroker depends on the buyer’s chosen payment method and the seller’s acceptance. Here is a general overview of the payment process:
- The buyer finds an item they want to purchase, places a bid, or chooses the “Buy Now” option.
- After the sale, the winning bidder is prompted to pay for the item. This happens when the buyer is redirected to a payment screen.
- The seller may specify their preferred payment methods on their listing, such as credit/debit card, PayPal, or a certified check or money order. The payment screen will reflect these preferences, and the buyer will choose one.
- If the seller accepts payment through Gunbroker’s checkout system, the buyer can use a credit or debit card to complete the transaction. Alternatively, if the seller has specified other payment methods, the buyer and seller must arrange payment and shipping outside of GunBroker. As discussed in the article above, this is often done via a third party.
- Once the payment is processed, the seller ships the item to the buyer. The seller should also tell the buyer that the order has been processed and shipped. This should be done via email only.
- The buyer receives the item and has the opportunity to provide feedback on the transaction.
Buyers and sellers must communicate clearly and follow Gunbroker’s policies and guidelines to ensure a smooth transaction. Since the sale of firearms is so heavily regulated, all parties involved must follow the letter of the law. This will protect you, your business, your buyers, and Gunbroker.
