After the 1968 Gun Control Act, gun dealers were required to have a Federal Firearms License through the ATF.  This created a heavily regulated environment for gun shops and dealers.  Add these regulations to the polarization of the 2nd amendment and it’s clear why many payment processors have chosen to avoid the industry.  But finding merchant services for firearms can be difficult for gun merchants or weapons dealers. Working with an FFL merchant services company, businesses can find competitive rates and fees with a simple application process.

What is a Firearms Merchant Account?

Gun dealers and gun shops in need of credit card or debit card payment services will need a merchant account services provider. The merchant account is a financial product that allows businesses to be tied into the Visa, MasterCard, Discover, and American Express networks. The payment processor manages the merchant account on behalf of thefirearm merchant processingbusiness, providing ongoing support and monthly reporting. Different payment processors will accept different types of merchants, so finding a specialized processor is essential for firearms businesses.

Merchant accounts can authorize transactions that originated online or at the merchant’s retail location. Retail merchant swipe customer payment cards through the credit card terminal or point-of-sale system located in the store. Online transactions can be accepted using a payment gateway, which provides a secure link between the merchant’s website and payment processor. The hardware and software merchants are using is provided by the payment processor, so merchants can use immediately without setup.

How Does Firearms Credit Card Processing Work?

The path of a transaction goes through a number of different financial organizations once it is started at the merchant location. Online transactions travel through the same means as retail sales when attempting to authorize a transaction.

Authorization Process Includes:

  • Merchant
  • Payment Processor
  • Acquiring Bank [Merchant Bank]
  • Payment Card Association
  • Card Issuing Bank [Customer Bank]

Payment card account information is captured during authorization at the merchant location using a credit card terminal or payment gateway. A secured file is created and sent to the payment processing containing card account information and transaction details. Passing through the firearms credit card processor, the transaction file is entered into the payment card association’s network by the merchant acquiring bank. Here the card association determines the card-issuing bank and sends over the secured filed with card account and transaction information encrypted inside.

firearm payment processingThe customer’s card issuing bank will run a series of security checks and account checks to confirm the authorization request. Once an answer is determined, the response is sent to the merchant through the payment gateway or credit card machine. An approved transaction will have a transaction ID while declined transactions will include a response code explaining the reason for the decline. At the conclusion of the business day, merchants will finalize their authorizations and inform their payment processor as to the totals requested per customer bank. Funds are dispersed by the customer’s bank the next day and reach the merchant’s location within 24-48 hours.


Firearms Merchant Services

Partnering with Allied Payments provides merchants an experienced firearms payment processing company able to work with online and retail FFL businesses. Businesses with existing payment processing hardware or software will find integration fast and simple. Startup merchants will have a variety of payment gateway, credit card terminal, and point-of-sale options that help provide significant cost-saving flexibility.

Payment Hardware and Software

  • Payment Gateway
  • Virtual Terminal
  • Credit Card Machines
  • Point-of-Sale [POS] Systems
  • Mail Order/Telephone Order [MOTO]

Allied Payments offers merchants the most flexibility when choosing a firearms credit card processing solution. Our extensive software and hardware services allow quick integration into some of the most common firearms platforms.

Compatible Payment Processing Systems

  • AmmoReady
  • FFL Boss
  • Guns America
  • Network Merchants [NMI]
  • Rapid Gun System
  • Weapons Depot

For information about specific hardware or software; contact our firearms merchant services team.

Acceptable Firearms Merchant Accounts

Allied Payments works with most businesses in the firearms industry. Regardless of the business is accepting transactions online or in person, we have a solution.

Allied Payments specializes in:

  • Gun Shops
  • Online Gun Shops
  • FFL Dealers

Allied Payments is not limited to

Other types of merchants we process for include:

  • Ammunition
  • Concealed Carry Permit Classes
  • Firearms Accessories
  • Firearms Components
  • Firearm Manufacturers
  • Gun Clubs
  • Military Supply Stores
  • Non-Firearm Weapons
  • Shooting Ranges
  • Tactical Supply Stores

Our firearms payment gateway and merchant account services are compatible with nearly every major platform. For information about specific firearms businesses or industries; contact our firearms payment processing team and they will be happy to help.

Requirements for Merchant Account Services

Depending on the types of products being sold, an FFL license might or might not be required. Merchants that are selling non-firearms products, such as various accessories or components might not need an FFL license. Merchant selling firearms will need an FFL and our underwriters will need to see the license before a credit card processing account can be approved. Merchants with a pending application at the ATF can apply for firearm merchant services but will be unable to process payments until the FFL is approved.

Fees for Gun Credit Card Processing

While gun dealer merchant services are viewed by many payment processors as high risk, specialized card processors can offer services with low rates. Most merchant accounts utilize one of the two most common pricing models, tiered or cost-plus. Merchants educated on the different programs can save money by determining the best solution for their business needs.

The original pricing system that many merchants still use today was based on varying pricing levels. Credit cards and debit cards qualify for the lowest possible tier based on their cost to the payment processor. Merchants have between 3 to 6 different levels, making the true cost of a transaction confusing to determine. Since this pricing model is generally more expensive for merchants, it’s becoming less common in today’s marketplace.

The most commonly used pricing system by merchants today is the cost plus, otherwise known as interchange plus, model. Unlike the tiered system, the cost plus adds a predetermined fee on top of every transaction. This guarantees every transaction costs merchants the same, regardless if its a debit or credit card. Merchants prefer this billing method because it’s cheaper than the tiered pricing systems of other payment processors.

Benefits of using Allied Payments

The specialized payment processing for gun shops and dealers offers merchants the tools and flexibility to grow their businesses. Working with a firearms payment processor like Allied Payments provides many different benefits.

Payment Processing Benefits Include
  1. Integration into POS Systems
  2. Online Payment Gateway Services
  3. Advanced Online Transaction Management
  4. Extensive Online Reporting Functions
  5. Fraud Control and Monitoring Services

Gun shops, dealers and other firearms-related industries need to keep extensive records, and most have turned to POS systems. At Allied Payments, our network is able to integrate into the most common point-of-sale systems used in the firearms industry. Dealers and stores not using a firearm POS system can also integrate into our network using any PCI Compliant credit card terminal.

One of the biggest benefits of Allied Payment is the ability of gun shops to expand online to significantly boost a company’s revenue. Whether it’s a holster company or a firearms manufacturer, accepting online payment processing will help businesses grow. Since most payment processors are unable to offer these services, Allied Payments has become a leader in firearms merchant account services.

Accept Payments at Your Firearm Business today!

As a leader in the firearms merchant services industry, Allied Payments can offer some of the best rates among gun friendly credit card processors. Since entering the industry, our goal has been to provide the lowest costs with the best customer service. Our team of payment processing experts can help all types of firearms businesses, including FFL and non-FFL weapons merchants, with credit card processing. Any type of merchant with questions about their business or our gun shop merchant account services are welcome to contact us. Our professionals would be happy to answer any questions about firearms merchant accounts or other merchant services questions.