Welcome to BKW Servicing
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- 1054 Saint Andrews Boulevard, Charleston, SC 29407
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Welcome to BKW Servicing
It’s no secret that owning and operating a business is not for the faint of heart, especially if you run a gun shop. When it comes to financial services, gun shop owners face unique challenges when finding payment processing options that are supportive of business needs. This is due to the perceived risk that banks see as a possibility for backlash when working with firearms businesses. As a result, business owners have had to find ways to thrive and adapt despite these financial constraints.
Let’s explore strategies that you can use as a gun shop owner to expand your business without a traditional merchant account, focusing on solutions like firearm underwriting and payment solutions to help make a difference in your overall operations strategy.
For most businesses, merchant accounts are essential in order to accept common payment methods such as credit and debit cards. Obtaining a merchant account as a gun shop owner can be challenging, as these processors have hesitations when it comes to regulatory concerns, chargeback potential, and political considerations. If your business does not have a merchant account, payment methods such as credit card transactions become impossible, hindering the customer experience. Gun shop owners have had to find creative alternatives in order to keep their operations running smoothly, but this shouldn’t be the case!
Do you know the saying cash is king? This is still certainly true, especially in the gun shop industry. Firearms businesses have long relied heavily on cash transactions, as they offer several different advantages. Cash payments eliminate the risk of charge box and allow for immediate payment. As a high-risk business, this can be game-changing. Gun shops are also able to avoid transaction fees by accepting cash payments, to contribute to a healthier bottom line.
While this sounds great for the business, but it can pose a struggle to customers who try and do business with the shop. Payment forms such as Apple pay, credit and debit card payments, and other electronic payment methods have become the norm. Not only that, but handling large amounts of cash increases the security risk for gun shops, especially in rural areas. Bookkeeping can also become more challenging, as managing large amounts of cash can require additional accounting resources.
It is not uncommon for gun shops to rely on third-party payment processors, especially if these institutions specialize in high-risk industries. This is because these institutions will understand the need that firearm businesses have in order to accept credit card payments without a merchant account. This may come with higher fees for the gun shop, but the pros heavily outweigh the cons. Gun shops should prioritize providers that offer firearm underwriting when selecting a third-party processor, this specialized service will allow businesses to remain compliant under federal and local guidelines to ensure the shop can stay in business.
If your shop sells non-regulated items such as apparel, accessories, or gun paraphernalia, you will be able to leverage online platforms to sell your merchandise. This is a great way for businesses to allow mainstream payment processors to handle the transaction for a portion of their sales while allowing for convenient business solutions for customers.
Gun shops have also been known to offer alternative financing options as a way to get around having to open a merchant account. Layaway plans and partnerships with financing companies can allow customers to purchase firearms over a set period of time. This can reduce the need for immediate full payment processing and increase sales as customers have a longer amount of time to pay for their merchandise. While this afterpay option can pose a risk for businesses, it also allows them to expand their customer base and allow for a variety of payment options.
Without a merchant account, you will need to rely on a strong relationship with your customer base. They will need to be passionate enough about purchasing from your shop to overlook the difficulties they may face when trying to purchase from your organization. Being transparent about payment options and emphasizing the quality of your products and services can be a great way to uphold customer reputation. By offering excellent customer service, clients can adapt to less convenient payment methods.
It is important to remember that as a gun shop owner, you are critical to the economy and upholding Second Amendment rights. Advocacy plays a big role in improving the access to financial services for folks in the firearm industry. When networking and going to gun shows, try to form relationships with other shops in order to learn what their best practices are and promote fair treatment by banks going forward.
While operating a gun shop without a merchant account can seem impossible, it is far from it. BKW Servicing thing offers firearm underwriting that is tailored to gun shop payment solutions. With our expertise when it comes to compliance and risk, combined with our commitment to helping your business overcome financial burdens, you can achieve scalable sustainability for your firearms business. Contact BKW Servicing to learn more about how we can support your payment processing as a gun shop!