Gun Maker and High Risk Merchants Blocked From Processing Credit Card Sales

Sep 09, 2014

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.

Let us help you get a high risk merchant account today!

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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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