Why Is It So Hard to Get a Merchant Account for the Firearm Industry?
The firearm industry is a vital part of the U.S. economy, serving millions of responsible gun owners, hunters, and collectors. Yet despite being legal and heavily regulated, businesses that sell firearms often face one major hurdle: securing a reliable merchant account for processing credit and debit card payments.
So, why is it so hard to get a merchant account in the gun industry?
1. High-Risk Classification by Payment Processors
Many banks and payment processors label firearm businesses as “high-risk”. This classification isn’t necessarily due to poor business practices—it’s based on the perceived risk of financial loss, chargebacks, and potential legal complications. Industries like firearms, adult content, and CBD often face similar scrutiny because of regulatory oversight and social controversy.
As a result, traditional processors like Square, PayPal, and Stripe often refuse to work with gun-related businesses, even if they are fully licensed Federal Firearms License (FFL) holders. This leaves firearm merchants scrambling to find alternative solutions.
2. Strict Legal and Compliance Requirements
Firearm sales are heavily regulated by both federal and state governments. Retailers must follow strict laws regarding background checks, age verification, and record-keeping. Many payment providers shy away from this space because they don’t want to deal with the legal complexity or the liability if something goes wrong.
Additionally, banks fear reputational damage from being associated with firearm sales—even if those sales are lawful. This makes it difficult for gun shops and ranges to secure approval for merchant accounts.
3. Chargeback and Fraud Concerns
Another major issue is the risk of chargebacks. Firearms and accessories tend to be high-ticket items, and chargebacks on these sales can be expensive for processors to absorb. Fraud prevention also becomes more critical in this space due to the potential misuse of firearms, which raises concerns about stolen credit cards and unauthorized transactions.
4. Lack of Firearm-Friendly Payment Processors
Even if you find a processor willing to work with the gun industry, they may not offer the tools you need—like POS systems that integrate with FFL compliance software, serialized inventory tracking, or support for eCommerce gun sales. This can make day-to-day operations more difficult and increase compliance risks.
A Better Solution: Firearm-Friendly Merchant Providers
Instead of trying to work with mainstream providers, gun businesses should look for specialized merchant services like those offered by Pistol Payments. These providers understand the firearm industry, work with compliant banks, and offer tailored solutions like:
- ATF-compliant POS systems
- Integrated eCommerce platforms
- Fraud protection and chargeback management
- Fast approvals and dedicated support
With the right partner, it’s entirely possible to secure a merchant account and run your gun shop, range, or online firearm business smoothly.
Final Thoughts
Getting a merchant account in the firearm industry is difficult—but not impossible. The key is finding a provider who understands your business and supports your needs. Firearm-friendly processors like Pistol Payments offer reliable, compliant, and scalable solutions designed to help your business grow.
