Welcome to BKW Servicing
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Welcome to BKW Servicing
It can be hard to find good gun shop merchant providers when you first open your FFL business. The truth is that many banks deny gun dealerships or, when they do take on their merchant services, they charge outrageously high processing fees. But you do have options for your gun shop. In this blog, let’s discuss the 6 providers who welcome gun dealers.
Gun dealerships are considered “high risk” to most banks and merchant providers due to potential issues with chargebacks and fraud. This is not entirely without reason. Between 2007 and 2011, nearly 70% of all guns recovered by law enforcement in Mexico originated in the United States, then traveled across the border as a result of gun trafficking. Between this and the rise in mass shootings, regulations surrounding firearms have been tightening and increased restrictions is a frequent topic of discussion in Congress.
This can be a lucrative industry in the United States, one worth upwards of $60 billion. But to start earning, it’s important for FFL merchants to keep their businesses fully compliant with federal regulations. And even if you do it right, many banks and credit card processors may not be willing to process payments from firearm merchants. Finding gun shop merchant providers you can trust is critical.
What does it look like to find a good gun shop merchant provider? For one thing, you need a provider who has experience with the firearms industry and the unique challenges that you might face, especially with risks of fraud, chargebacks, and compliance. When seeking out gun shop merchant providers, look for someone who has solutions in place to minimize the risk of fraud and chargebacks, or API built into their software to keep your business compliant with data privacy and firearm regulations.
Fees are another issue. Too often, gun dealers face high processing fees or hidden fees that take a huge bite out of their profit. Transparent pricing is an important factor for the right merchant provider. Some even offer custom pricing in order to hopefully reduce the risk of exorbitantly high processing fees.
Next, consider security. Since eCommerce tends to rule the day in our current day and age, robust online security and data privacy is important. Fraud prevention measures can also help to keep your gun shop out of hot water. Technological advances like blockchain payments or tokenization work to encrypt customer information so that even if your website is hacked, the information will remain protected.
Of course, every gun dealer is different and may have unique challenges or goals. One benefit that BKW Servicing offers is our 25+ relationships with banks and other payment processors. This allows us to create merchant provider solutions that are custom-tailored to your business.
With all that said, let’s get into the top 6 account providers that not only welcome gun dealers but can be trusted with the unique challenges your gun dealership might face.
Easy Pay Direct is a high risk friendly merchant provider, including FFL businesses. They have variable contract terms so that your terms can fit your needs. They also offer no early termination fees for domestic accounts.
eMerchant Broker is a popular payment processor, especially for high risk merchants. And with good reason. They can work with gun shops of any size, so they’re perfect for a small business that plans to scale as time goes on. They don’t have a setup fee, making it easy to get started, and their rates are variable depending on the volume of sales that you receive.
Payment Cloud is an excellent option for a gun shop that’s just starting out or on a budget. Like eMerchant Broker, they have no setup fee. They also have no monthly fee for service. One unique benefit is that every account on Payment Cloud has its own dedicated account manager.
SGO Virtina is not strictly a payment processor, but rather an ecommerce platform for selling guns online. However, it offers many of the same benefits, such as processing your transactions, taking security measures to protect sales, inventory management options, and accepting most major cards. If your business is strictly online, SGO Virtina might be the way to go.
Ammoready is another ecommerce platform for gun dealers. However, with Ammoready, you can still make use of it for online sales even if you have an existing physical storefront. Ammoready specializes in creating online storefronts that are also mobile ready and provides dropshipping and a product live feed to make sales more convenient.
BKW Servicing is a payment processing solutions company that has relationships with over 25 banks and payment processors. We work with high risk clients, including gun dealers, and ensure success by creating a custom-tailored payment processing plan that fits your business. Because of this, we’re able to scale with your business. As things change for you, you can change your services with us. We leverage technology to give you the latest in inventory management, compliance, and data security for all of your online sales.
BKW Servicing makes it easy to apply, and easier to get started earning with your business. Contact us today to learn more and get started!