2nd Amendment Friendly Merchant Services
FFLs can have a very hard time getting merchant account services, owing to the controversial nature of gun sales. Despite record sales in 2012 and 2013, gunsmiths and firearms dealers have been dropped by major credit card processing companies. The irony here is that just about anyone else that tries to cancel a merchant account may end up paying thousands of dollars in early termination fees, but the processor has the discretion to leave independent gun stores high and dry.
The ability for firearm and gun accessory shops to take cards is essential, since so many customers are going to be using charge cards for their purchases. Buyers with more money and higher credit limits are going to want to earn rewards points and credit card miles when they purchase a $1,200 rifle or pistols (like the Glock) that cost $500 each. The image in the media of “Saturday Night Special” sales as a driving force at a gun shop becomes ludicrous when you consider the high cost of good firearms, and the fact that cheap guns have smaller margins and more complaints.
Credit Card Services for FFLs
Finding an FFL friendly merchant services company is no easy task, but there are some options out there. The NRA website lists several processors and the it also lists other processors who take cards. When taking credit and debit cards, it makes sense to invest in advanced check guarantee services that ensure that there is money in the account and the checks don’t get cancelled. While most shops don’t take checks (and for good reason) because of old-style check fraud, there are some that take checks for non-gun purchases or small dollar amounts as a courtesy.
Increased Demand Fuels Card Use
The increase in demand for ammunition, and the rise in prices, has made the sale of ammo into a “bread and butter” proposition for many stores that used to get less business. Once again, people are breaking out the plastic when they are paying 2-3 times the amount for a box of bullets that they purchased just a couple of years ago. As anyone into recreational shooting knows, you can go through a lot of bullets at the rifle range, and you may not want to stop practicing just because the price went up.
A final point of note for firearms sellers is the reloading supplies business, which has gotten much more prominent now that ammo is in such short supply. Expensive reloading equipment, much like tactical gear, scopes, hunting vests, and other equipment is suddenly in high demand. A debit and credit card processing solution for your gun store is something you just can’t do without.