If you have been in the gun business for a while, you understand how challenging it is to find a suitable payment processing company. Many merchants in the industry go through all the trouble of drawing up a proper application, only for their effort to go to waste when the processor rejects it. But like all businesses operating in today’s competitive world, the success of a firearm enterprise largely depends on its ability to accept credit and debit card payments from customers.
You probably don’t know it, but the reason rejection notices keep knocking on your door is that your prospective payment processing company considers you a high-risk merchant. This means that, in their eyes, your business is not likely to live up to the conditions of the agreement.
Nevertheless, just because your bank has denied you merchant account services doesn’t mean it’s the end of the road. You still have other options to exploit. To get the best possible deal, however, you need to understand why payment processors may be reluctant to work with you.
- The nature of your business
Because of stringent restrictions by the federal government and regulatory bureaus, the firearm industry is itself considered a high-risk sector. Therefore, the uncertainties of the business environment make payment services providers hesitant to partner with gun merchants.
Similarly, the issue of gun ownership is one that continues to attract polarizing opinions, which means a payment processing companies may be wary of facilitating your firearm business out of fear of jeopardizing their reputation.
- Online operations
Let’s say you have identified a processor that is known to service gun dealerships, but your application for a merchant account is still rejected. The next probable reason could be your business setup. Payment services providers typically prefer brick-and-mortar establishments to online stores because, in addition to being well invested in the operation, they attract fewer cases of fraud and chargebacks.
Regardless of the nature of your business, a payment processor will regard it as high-risk if its main operating platform is the Internet. If you run a gun store online, therefore, your chances of scoring a merchant account will be extremely slim.
- Poor credit
Some companies will accept firearm dealerships only if they have existed for a while and their financial documents prove they will stick around for the long run. A history of timely payments to debtors will show a processor that your business has established a loyal client base, and can comfortably maintain a steady income.
On the other hand, poor business credit is usually another red flag for the merchant account provider, and they will, therefore, place your enterprise at a higher risk level.