The firearms industry faces unique challenges when it comes to payment processing, from compliance issues to high-risk classifications. One of the most effective and innovative solutions for gun shops, FFL dealers, and shooting ranges is Free Processing, also known as Dual Pricing. This method helps merchants reduce or even eliminate traditional credit card processing fees—while staying fully compliant and transparent.
What Is Free Processing?
Free Processing is a merchant pricing model that passes credit card fees onto the customer while allowing cash-paying customers to avoid those fees. It’s also referred to as Dual Pricing because it involves listing two prices: a cash price and a card price. When customers choose to pay with a credit or debit card, they cover the transaction fee. When they pay with cash, they receive a discount equivalent to the processing fee.
This model is fully legal in most U.S. states and is becoming increasingly popular in high-risk industries like firearms, where traditional processors charge higher fees or deny service altogether.
Why Free Processing Is Ideal for the Gun Industry
Gun-related businesses—especially those selling firearms, ammunition, and tactical gear—are often charged premium rates due to their “high-risk” classification. This can eat into profit margins and make it difficult to compete. Free Processing offers a smart alternative that:
- Eliminates or significantly reduces your card processing fees
- Keeps you compliant with card brand rules by showing dual pricing
- Increases revenue retention, especially on high-ticket items
- Simplifies budgeting with predictable cost savings
In a business where profit margins are tight and regulatory compliance is essential, Free Processing helps gun merchants stay competitive and profitable.
How Dual Pricing Works in Your Gun Shop
Let’s say you sell a handgun for $500. Under a Free Processing model:
- The cash price is $500
- The card price might be $517.50 (adding a 3.5% fee)
Your POS system displays both prices clearly, and the customer chooses how they’d like to pay. This level of transparency ensures compliance with card association guidelines and avoids the pitfalls of traditional surcharging.
Tools That Support Free Processing
Advanced POS systems like Defender POS or Clover, when integrated with a firearm-friendly merchant provider like Pistol Payments, support dual pricing seamlessly. These systems automate the pricing adjustments and ensure receipts, terminals, and online listings reflect the correct price structure.
Additionally, firearm-specific merchant services offer:
- FFL-friendly compliance tools
- Real-time transaction monitoring
- Built-in chargeback protection
- Integration with FastBound and inventory tracking
Free Processing, or Dual Pricing, is a powerful way for gun shops and shooting ranges to take control of their payment processing costs. With the right provider and POS setup, you can stay compliant, reduce expenses, and give your customers flexible payment choices. For firearm businesses looking to maximize profit while avoiding processing pitfalls, Free Processing is the future.
