Some banks are jittery over anyone that runs a firearms business and today is your not so lucky day. They decided to close your account and you have little to no time to find a new one.
This is also your lucky day
By doing so they have sent you on a challenge hunt; one that will take you online in search of an online firearms merchant account. You are going to need to type in the search words for ‘high risk’. Don’t be dismayed by this new title. Although a firearms business is not necessarily a high risk business fraught with a high volume of returns, it is deemed risky purely because it is a business dealing with guns and ammunition. For some reason it makes people nervous.
For every honest merchant account servicer, you will find a lot that are not honest. Check around to see who has the best reputation. Visit some forum sights to verify that they are indeed the real Macoy.
Get down to business
Once you have chosen your merchant account servicer, fill out their application. If they are high risk specialists, then they are not afraid of you or your firearms sales. They will verify a few things to expedite the paperwork. They will be after your FFL, your business license, your driver’s license and likely a few other tid bits. Be prepared and it will all go smoothly.
As a new account owner with an online firearm merchant account, you will be subject to a trial period. Do not be alarmed, and be prepared to work with this. A reserve account will be set up as you work your way through the trial period. A small percentage will be removed from your daily credit and debit account purchases and placed into that reserve account.
10-20% of the money is placed into this Escrow type account for the three to six month trial period. Once that is over, the money is returned to you in its entirety, to an account that you have designated. So, with this heads up, you can be prepared. It’s harsh enough that the bank shut you down, the few surprises you have the better prepared you can be.
Little to none
Chargebacks are something you need to worry about. Although, with firearms, after going through all the background checks and registrations of the guns, people don’t normally return them. But if there is some issue with the item, be prepared for a chargeback.
Banks don’t enjoy them, and they scare merchant account servicers. The reason being, the merchant account servicers are held accountable for the amount if the business cannot cover the chargeback. That is the reason for the Escrow account and the trial period. That is the amount of time you get to prove you are an established, honest business. So please handle it, accordingly.
It’s really very simple to find a merchant account servicer. There are thousands online. Just make certain they are real and read the dotted line. If you are not comfortable with it, you don’t have to go into business with them.