Free Processing vs. Standard Processing: What’s Best for Firearm Merchants?
When it comes to accepting credit card payments in the firearm industry, choosing the right merchant service program can significantly impact your bottom line. Two common options are standard processing and free processing (also called dual pricing). While both have their uses, for many gun shops, FFL dealers, pawn shops, and shooting ranges, free processing is the clear winner.
Here’s a breakdown of each option and why dual pricing is often the best choice for businesses in the firearm space.
What Is Standard Processing?
Standard processing is the traditional model used by most businesses. Under this setup, the merchant absorbs all credit card processing fees, which typically range from 3% to 6% depending on the provider, industry risk, and transaction type. For high-risk industries like firearms, those fees are often on the higher end.
For example, if you sell a $1,000 rifle and your processing fee is 3.5%, you’ll pay $35 in fees just for accepting that payment. Over time, these costs add up, cutting into your margins and reducing overall profitability.
Pros of Standard Processing:
- Familiar and widely used model
- Clean, flat pricing for customers
- Easier for some legacy POS systems
Cons:
- Merchant absorbs all transaction fees
- Lower profit margins
- Difficult to sustain for high-ticket items
What Is Free Processing (Dual Pricing)?
Free processing, or dual pricing, is a compliant way for merchants to pass credit card fees to the customer, while offering a discount for cash payments. With this model, you list two prices for every product: one for cash and one for card. The difference (usually 3.5% to 4%) covers your processing fees.
Using the same example as above, a rifle might be listed as:
- $1,000 (Cash Price)
- $1,035 (Card Price)
This transparent pricing model allows the customer to choose how they pay and gives the business full control over its costs. Unlike traditional “surcharging,” dual pricing is legal in most states and is compliant with card network rules—when implemented correctly.
Pros of Free Processing:
- Eliminates up to 100% of credit card fees
- Increases profit margins instantly
- Fully compliant when properly disclosed
- Encourages cash transactions
- Supported by modern firearm-friendly POS systems
Cons:
- Requires clear signage and communication
- May need updated POS software for compliance
Why Free Processing Is Better for the Firearm Industry
The firearm industry is labeled high-risk by most banks and processors, which means higher fees and limited access to payment solutions. Free processing empowers gun businesses to regain control by removing costly fees and increasing profitability.
Providers like Pistol Payments offer firearm-specific POS systems that integrate seamlessly with FFL compliance tools, support dual pricing, and offer protection against chargebacks and fraud.
Whether you run a gun shop, shooting range, or online FFL business, free processing is the smartest way to cut expenses, comply with regulations, and improve your customer experience—all without changing how you do business.
Conclusion
While standard processing may feel familiar, it’s not always the most sustainable option for firearm merchants. Free processing (dual pricing) is the better, more cost-effective alternative, especially in a high-fee industry. With the right setup and partner, your gun business can thrive without being weighed down by transaction fees.
