Ammo Sales Rise, and Not For a Good Reason

Mar 18, 2015

Ammo sales are on the rise, but not for a good reason. Many are clamoring to get their hands on an armor-piercing 5.56 millimeter bullet that is commonly used in AR-15 semiautomatic rifles. The ATF wants to ban these bullets, citing danger for the public and law enforcement, due to their “armor-piercing” abilities. They are also hesitant of these bullets being sent overseas and given to terrorists, i.e., ISIS/ISIL. This is also the same type of ammo that was used in the Sandy Hook Elementary School tragedy. While short-term sale booms are good for business, the long-term effects may be damaging, if you do not respect your customers.

By this, I mean that prices are now skyrocketing for these bullets. Many merchants are charging a 200% or more markup, just because they know the bullets will sell. Ammo aficionados are known to pay outrageous prices for weapons and ammo, and some merchants see this as fair game. However, price gouging of any kind is unethical in the business world. This behavior, while lucrative short-term, can end up ruining your reputation long-term due to the fact that you were a price gouger.

While litigation will certainly do one for months, if not years, over the banning of this ammo, you need to make sure that you and your online firearm merchant account is safe. You need to watch out for suspicious purchases, as these can cause a fraudulent charge and chargeback. Often, when a product is big news, or being quickly phased out, fraudsters use this time to make their purchases. Since this ammo could fetch a good amount on the black market, it is even more important that you pay attention to who is buying the goods. If you sell online, call the phone number attached to the information, and if you are still not sure about the purchase, you could always ask for a photo scan or fax of their identification card. Another good rule of thumb is not to ship to PO Boxes, as these are often associated with fraudulent schemes. Also, make sure that you keep in touch with your online firearm merchant account provider. A reliable one, such as EMB, can help you figure out if a suspicious purchase is fraudulent before it hits the bank.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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