A big news story in the recent weeks has been that of Oregon based gun maker “Calico Light Weapons Systems” who is having to shut its doors, thanks to its online firearm merchant account processor refusing to accept any more transactions from the company. The company’s owners believe that they are being unfairly targeted, thanks in part to the Justice Department’s “Operation Chokepoint”, which set out to target businesses who are illegally operating as a front to illegal activities. Unfortunately, many legitimate businesses are being targeted, as well.
While the theory of Operation Chokepoint is a good idea, many legitimate businesses are making the news, because they are being caught up in its efforts to stop illegal activities. While it seems like something out of a movie, it is not, and sadly, it is becoming increasingly common. Gun dealerships are targeted – not because they are gun dealerships – but because they tend to attract the “wrong crowd”, i.e. the fraudulent crowd. Online gun dealerships garner some of the highest fraudulent charge percentages in the sales industry. Another issue that the company, says that they had was that their merchant account processor thought that they sold weapons over the internet, which they claim they do not. Regardless, any weapon sales business, whether they sell the intact weapons, or just replacement parts, is going to be looked into. While the vast majority of these companies are legitimate, the sad reality is that some of these legitimate companies will end up without a credit card processor…unless they know to choose a high risk processing company such as eMerchantBroker.
EMB specializes in “high risk” businesses, otherwise known as gun dealerships, adult dating websites, e-cig businesses, and others that can garner high rates of fraudulent activity. We at EMB will not drop your company because of it. We love to do business with a successful company, and we will help you figure out whether these charges are actually fraudulent.