Regulations, laws, and fear have the gun purchasers and naïve individuals a bit edgy. The law abiding citizens that have every right to bear arms, are frightened by the president’s views. Lack of education causes fear and fear breeds trouble. So, if you are a business that sells guns, here are few things to do to adhere to laws and maintain your merchant account.
You’re bouncing around
A few things to consider before you begin:
• Do you have your Federal Firearms License or FFL?
• Do you have your EIN number, also known as the Employer Identification Number?
• Are you prepared for the hold back when you start your merchant account?
• With an online firearm merchant account you can grow your gun business exponentially. Wouldn’t that be what you are after?
Hold back? What’s that?
Also known as a Reserve account, there will be an amount taken from your credit and debit card purchases daily. 1% to 9% will be deposited separate from your money. It will sit there and grow for the next three to six months. Sometimes they wait as long as a year and that can be hard on you and your business, so be prepared for the shortfall.
The money is deposited back into your account once the trial period is over. Know that there is also a rolling reserve. When one month is over you receive your money back and so on and so forth. Asking for a rolling reserve may be a lot easier on you than the longer period.
Take care of your refunds
Because of the high risk of refunds, also known as chargebacks, you will need to be extra careful with your refunds. Have a store policy in place for such an occasion. Not dealing with a refund could result in the loss of your merchant account and also being placed on the black list. If you get that far down the ladder, you won’t be able to get back on the wagon. They lock you up and throw away the key, so don’t mess up.
Getting your merchant account
Act like this was your resume for a new job. Fill out the application and then put a cover letter together like your life depended on it. Make it technical and exact. Be precise about your business and don’t leave anything out. Tell the truth from beginning to end.
The odds of getting your merchant account, is far greater than if you didn’t fill it out this way. The more truthful you are, the chances will be more in your favor.
In the end
You got what you needed and you could grow your business in ways you never dreamed. It is a high risk business because of chargebacks, not because of the sales you do. You have a reserve account to consider and knowledge that you are in the high risk merchant account area. You also will be able to get purchases twenty four hours a day, seven days a week with online sales from your website. Go grow a business.