Liability Insurance Mandate for Firearm Sales and What It Means For Gun Merchants

Jun 15, 2015

Added responsibility has been placed upon US citizens purchasing and owning guns. This is following New York House Representative Carolyn Maloney’s new bill. The legislation requires all gun owners to have liability insurance cover. Failure to have this sort of insurance protection is to attract fines of up to 10,000 US dollars.

The New York House Representative has compared this liability insurance to car insurance. In her view, the car insurance has contributed to low fatality rates in the transport industry. The gun insurance policy is intended to introduce responsible behavior among those who are buying and owning guns for self-protection.

Maloney observed that auto insurance carriers have been obliged to incentivize drivers to take precautions that reduce accidents. Gun insurers will have to follow the same line of action with their clients to reduce gun fatality rates.

A large number of people are purchasing their firearms online. This rule will apply universally to people who buy their guns from an online merchant who has an online  firearm merchant account just the same way it does to those who buy guns in-store.

This piece of legislation comes as an adjustment to the Second Amendment rights that allow all the US citizens to purchase guns for their individual security.

In a statement that has been met with strong criticism from different analysts, Rep. Carolyn Maloney has observed that car insurance has contributed to a 25 percent decline in the number of related fatalities in the last decade alone. Gun fatalities on the other hand have been on the rise according to her.

Some critics have termed Maloney’s stats as incorrect. They have noted that gun related homicides have reduced by 39 percent between 1993 and 2011 according to the Bureau of Crime Statistics. They have further supported their counterargument with data from Pew Research that provides a higher figure. According to this research agency, gun homicides are down 49 percent between 1993 and 2010. This shows that America is least violent at the moment, with violent crime continuing to go down.

Whether or not this piece of legislation is going to make America a safer place remains to be seen. The effectiveness of this law now lies upon its implementation.

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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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