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What Do I Need To Get A Firearms Merchant Account?
How to Get your Firearm Merchant Account
Whether it is online or in-person, gun and ammunition sales are at an all-time high in the United States. This means that securing your firearms merchant account and ammunition merchant account has never been more important. You’ll want to make sure that you find someone who is reputable within the industry and has a tried and true method of keeping your merchant account actively processing payments.
Firearms require a high-risk merchant account, and you need to make sure that your company has checked all of the boxes required to sell firearms, ammunition, and other weapons and accessories online.
What Do I Need?
With firearms and ammunition merchant accounts, there are a few things that you will need to start processing payments.
- Any business selling guns will need to acquire a Federal Firearms License or an FFL. FFL’s are required by law to be able to sell or manufacture firearms. FFL licensed dealers have to adhere to laws in place to limit liability and ensure the safe operation of these firearms. This is required to be able to receive a merchant account.
- Once you have applied for your FFL, it will need to be approved by the ATF. To get approved you will need to be 21 or older, legally eligible to possess a firearm, and not have any prior Gun Control Act violations.
- Ammunition and other gun accessories do not require an FFL. This is something to keep in mind when starting your business. Even though these subjects don’t require an FFL, they’re still recognized as high risk.
- A merchant account provider who is reputable. Companies like Stripe, Paypal, and Square won’t be accessible options to your business, because they do not deal with firearms. This means that it is up to vet the right company and make sure that they have a history of providing long-lasting merchant accounts in the firearm industry.
How to Sell Guns and Firearm Accessories
Owners of firearms sales businesses need to know how to sell guns and ammunition online. Follow the steps below to get started.
1. Register Your Business
If you want to enter the business of regularly selling firearms, you will need to choose a name that encompasses your brand identity and vision. Once you decide what you want to call your business, register it with your state and buy the appropriate online domain.
2. Choose the Structure of Your Business
After you register the name of your business, you must choose a structure, such as a C-Corporation, S-Corporation or LLC. Review the legal implications and tax benefits of each structure to determine which is the best option for you.
3. Develop a Business Plan
Determine how you want to start selling guns and accessories. Before you decide how you want to run your business, consider your finances and do some budgeting or financial planning. The following questions are just a few examples of what you should ask yourself.
- Will you be manufacturing or reselling?
- Where will you source firearms from?
- Where will you ship guns to?
- How long will your guns take to ship?
- How can customers purchase your firearms?
Make these decisions now so you have a solid business plan when you’re ready to get started.
4. Follow the Licensing Requirements in Your State
If you will be selling guns frequently, you will need to obtain a license. For most firearm sales, you need a Federal Firearms License (FFL), and to sell a firearm across state lines, you will likely have to do an FFL transfer. Research your state and local legislature to learn more about the laws in place and what licenses you need to require to sell firearms in your location.
5. Open Up a Retail Store or an Online Shop
To sell firearms, you should either open a brick-and-mortar location or an online store. Many customers want to visit a business and examine the equipment before making a purchase, though others are turning to online shops as a more convenient way to make purchases. When done right, selling guns online means more profits and less overhead for you. However, it’s up to your preferences.
Tips When Selling Firearms
If you’re thinking about selling firearms, you’ll want to keep three essential tips in mind.
- Know your local laws: Under the Federal Gun Control Act (GCA), you are required to be licensed to sell firearms by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). You could face severe penalties including prison time without this license. Some states also have strict laws regarding firearm sales, so be sure to check your state’s agencies before you start your business.
- Know your local clientele: Analyze your target market to gather more information about your audience and sales data.
- Find a reliable payment processor: You will need to set up gun-friendly credit card processing and get a merchant account. Since firearms are a high-risk industry, you may have limited choices.
Start Selling Today
As you can see, there are quite a few things that are required of you to start selling firearms and ammunition legally. Each state has different laws please be sure to follow your local legislation when setting up your firearm and ammunition shop. Abiding by all laws will help ensure you get approved for processing, and will get you approved to sell much faster. With that being said, there is no time like the present to get started on this! Zen Payments has been helping businesses like yours for the last 15 years and will make sure that you get approved, and have a long-lasting merchant account. Don’t get your funds frozen by choosing the wrong firearms payment processing company. It’s an easy 4-step process with Zen Payments
- Fill out the contact form
- Fill out your application with a member of our sales team
- Get underwriting approval for your merchant account
- Approval and setup
Let our expertise in the firearm and ammunition industry help you today. Whether you’re selling on your own site or you’re a reseller on GunBroker.com, we’ve got you covered! We work with thousands of high-risk merchants every day. For merchant services, contact us at Zen Payments today!