A successful gun store needs to be built on a firm foundation of regulatory compliance, product excellence, strong marketing, and excellent customer service.
However, meeting all of these benchmarks will come to nothing if you overlook another equally important necessity: finding a gun-friendly merchant account provider.
But what do these payment processors do, and how can you go about finding the best one for your firearms business?
What is high-risk payment processing?
Whether you sell products in a physical store, online or both, you must partner with a high-risk payment processor. This entity furnishes you with the hardware, software and security systems that are necessary in order to accept credit and debit cards as well as mobile and multi-currency transactions.
Additionally, the payment processor acts as a mediator between you and the other financial institutions involved.
As a seller of guns and/or ammunition and other related paraphernalia, your store falls under the “high-risk business” category. This is because the industry is highly regulated, requiring extra work and time for financial institutions.
It is also subject to a higher-than-normal number of customer chargebacks and fraud and, while legal, bears a certain reputational stain.
High-risk payment processing companies are willing to accept the extra burden of risk, albeit at a cost. You can expect more scrutiny during the application process and will likely have higher per-transaction and other fees.
You might even be asked to store a percentage of the funds from each transaction in a rolling reserve to further protect the lender.
Finding the best high-risk payment processor
Although you will not be able to avoid some of the added fees and requirements that a high-risk payment processor will impose, that does not mean that these companies are created equal.
With careful research and comparison shopping, you can eventually enter into a fair and productive relationship with a reputable vendor.
Start by finding one with expertise in your industry. A gun-friendly merchant account provider will already know the intricacies of the firearms industry and have forged positive relationships with like-minded banks and other players.
They will also understand the nature and extent of the unique challenges you face and will often be able to help you to navigate them.
Next, take a long look at the company’s agreement. Fees should be 100% fair and transparent, and you should not be locked into an onerous contract that traps you for years.
Additionally, find a company that offers flexibility and diversity in the payment options you offer. Customers should have the option to make purchases using not just credit and debit cards but also mobile and digital payments, ACH, and even multiple currencies for international clients.
Never lose sight of security. Look hard to be sure that the company you choose is in compliance not only with firearms-related regulations but also with the Payment Card Industry Data Security
Standard (PCI DSS) as well as other measures designed to shield cardholder data from hacks and breaches. Furthermore, demand that they provide you with a robust suite of encryption and anti-fraud systems that will protect both you and your customers during and after transactions.
Finally, the vendor you choose should have customer service available in multiple channels (human helpdesk, live chat, user forums, knowledge base, etc.) at all times to troubleshoot and address crises and situations that suddenly arise.
This feature keeps business interruptions to a minimum and enhances your company’s credibility in this highly competitive industry.
The firearms sector is expanding at a brisk rate year after year. With the right high-risk payment processor at your side, your company can succeed in this ultra-competitive but lucrative market.
