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Banking Loophole Makes Gun Shop Payments Easy

If you are a business owner in the firearms industry and have struggled to manage payments and processing transactions, you are not alone. You also may have noticed a common trend – Most banks are hesitant to provide services to gun shops. This can be due to a variety of reasons, but most commonly they are aiming to protect their image, adhere to cultural norms within the organization, and protect themselves from what can be perceived as a risky industry. As a result, many gun shops have had a lack of options when it comes to finding reliable ways to process sales. 

What most gun owners do not know, is there is a banking loophole that is helping gun shop owners take control of their payment processing and keeping their businesses alive. By leveraging FFL banking laws, gun shops can operationalize their businesses and gain access to compliant payment solutions that will help run their operations and provide a smooth customer experience. 

If you are interested in learning how this loophole works, and how you can take advantage of it right away with the right bank’s support, keep reading. 

Understanding Gun Shop Finances

Owning a gun shop means that you are operating under one of the strictest regulatory frameworks when it comes to business ownership. Gun shops fall under the US borough of alcohol, tobacco, firearms, and explosives, which are subject to strict FFL regulations. Even if your gun shop is operating legally and meeting all compliance needs, it is not uncommon for businesses to be turned away from banks and payment processors who are unwilling to work with organizations in this industry. 

This refusal has led gun owners to experience numerous challenges when trying to compliantly and effectively process transactions. Some of these include:

  • Difficulty Processing Credit Card Payments
    Many banks that fall under household names such as PayPal and Stripe will refuse to work with businesses operating under the jurisdictions. As mobile banking and tap-to-pay become more popular, this poses a challenge for business owners who want to provide ease and convenience to their customers.
  • Business Loans
    Firearms businesses also struggle to secure funding to help their organizations scale. Many banks are hesitant to give out loans due to the possible risk of operating in this industry.
  • Sudden Policy Changes
    Some gun shop owners have even had their bank accounts suddenly closed due to policy changes that suddenly impact banks.

As you can see, these challenges have made it difficult for FFL holders to continue operating. If this has happened to you, there are a few nuances to FFL banking laws that you should be aware of. 

FFL Banking Laws

To start, Let’s dive into understanding what FFL banking laws are and why they are important. These laws are designed to ensure financial fairness for businesses that are attempting to operate under federal regulations in a legal and compliant way. Unfortunately, these laws do not mandate banks to work with firearm and explosive-related businesses. However, they do put guidelines into place to encourage compliance, transparency, and support for these types of organizations. 

Banking laws include:

Legal Protection: If you are an FFL holder, you will have the right to access banking services as long as your business is complying with policies to operate legally. 

Compliance: As a gun shop owner, you must follow strict rules for financial reporting and necessary background checks on customers in order to process transactions.

Anti-Discrimination: Financial institutions and banks are also expected to treat businesses fairly and with respect no matter what industry they are operating in. 

These factors will help you in finding a financial service provider that can help you continue to operate within compliance. 

Are There Loopholes?

If you are looking for the best way to process payments as a gun shop owner, it is important to know what loopholes are available to your unique business. The key here is to partner with a payment processor that is able to understand the unique compliance requirements of operating within the firearm industry. When vetting payment processors, you will want to make sure to work with specific providers who focus on FFL compliance, avoid blanket policies, and offer tailored solutions made just for your business and industry.

Working with a provider who is knowledgeable in state and federal regulatory needs of gunshots can help you maintain compliance and offer the best customer service to your clients. Unlike big banks, these providers will not have the same restrictions, making it easy to freely partner with them. By partnering with these specialized payment providers, you will be able to regain confidence when it comes to the financial standing of your business. 

Why This Approach Is Effective 

Working with a specialized payment provider is certainly your best bet when it comes to operating within the firearms industry. This is because you will be able to leverage the expertise of financial service providers who are compliant with FFL banking laws and also committed to supporting the rights of customers to legally purchase a firearm.

Working with a provider who freely supports Second Amendment rights can make all of the difference. These providers will also be well-versed and understand risks associated with operating within the firearms industry, and have recommendations to lower these risks to protect your business. They can stay up to date in the ever-changing world of FFL banking laws and ensure your shop remains compliant if any adjustments need to be made. 

How BKW Servicing Will Benefit Your Business 

BKW Servicing specializes in providing financial solutions to gun Shop owners and firearms related businesses, well understanding the unique challenges that come with operating within this industry. This way, you can be confident that your shop is meeting all necessary criteria and will not be shut down due to reasons unbeknownst to you. When working with us, you can expect:

  1. Secure Payments: Secure payment solutions that help you to accept credit card payments seamlessly, with anti-fraud protection and Mobile payment options such as tap to pay. 
  2. Customized Services: Whether you are interested in funding your business or operationalizing your merchant processing, we will help you customize your unique business needs. 
  3. Regulatory Knowledge: Operate with confidence knowing that you are up to date on all FFL banking requirements and notified of any changes that come down the line. 
  4. Custom Support: Our team is here to provide personalized and customized experience every step of the way as you work with us. 

Owning and operating a gun shop does not have to come with an endless headache. By knowing your rights and banking loopholes while working with a trusted partner such as BKW Servicing, you can stay compliant and offer the best service to your customers. Contact us today to get started!