Meet Every FFL Merchant Requirement – Guaranteed

When it comes to working in the firearms industry, compliance is not just a recommendation but a requirement for operating your business. As a federal firearms license holder, it is important that you understand how to navigate regulations and guidelines in order to keep your business up and running. No matter if you are just starting out in the firearms industry or looking to improve your business operations in the new year, having a reliable system in place can ensure financial stability, customer satisfaction, and the promise of expansion.

In this article, we will explore how to meet every federal firearms license requirement with confidence. From establishing a strong client base to securing your payment processor, here is everything you need to know about meeting all of the guidelines required for your business.

Diving Into The Basics

While obtaining a federal firearms license allows you to engage in the legal business of importing, manufacturing, and selling firearms, there are big risks if you fail to comply with the regulations that come with obtaining this license. There is a lot at stake for your business, so understanding the consequences is crucial. If you do not comply with federal, local, and state regulations, you may have to endure hefty fines, license revocation, and even the closure of your business altogether.

The Bureau of alcohol, tobacco, firearms and explosives enforces these regulations and mandates regular audits of businesses operating in this industry. In order to properly prepare for these surprise inspections, every federal firearms license holder must have a compliance strategy in place and the educated on what is expected of them.

FFL Merchant Prep List

1. The first step to ensuring you pass your audit is to obtain and maintain your federal firearms license. Applying for your federal firearms license requires the submission of form 7 along with a required fee for processing. You will also need to undergo a background check to ensure you are eligible to obtain a license. If it has been a while since you obtained your license, check on the expiration date, as federal firearms licenses must be renewed every 3 years.
2. Next, you will want to make sure that you register with your local authorities for business licenses and zoning requirements. This will be specific to firearm sales, and are different from operating a standard business. Some states will require you to obtain additional licensing so that you meet both local and federal guidelines.
3. Secure storage and accurate bookkeeping should also be top of mind. This goes without saying, but your firearms must be stored securely in order to prevent theft or access by unauthorized personnel. The vaults that you use should be industry standard safe or display cases that align with ATF guidelines in order to pass your audit. Record keeping must also be secure so that you are able to pull up any document that is requested by the auditor. It is required by law that you keep all records for at least 20 years, and ensure that these documents are organized and easily accessible.
4. Conducting background checks to screen customers before completing firearm sales is a guideline you also must follow. Get familiar with the exemptions that may apply to your location, such as concealed carry permit holders.
5. Last but not least, it is important to work with a payment processor that advocates for secure payment solutions. Traditionally, many banks are hesitant to work with firearms businesses as they are perceived as high-risk industries. By ensuring that your payment process understands the complexities of federal firearms licenses and compliance, you can have confidence in setting yourself up for success in your next audit.

The Importance of Payment Processing

Having a seamless and compliment payment processing system is critical for any business, but is especially important for federal firearms license holders. Every single credit card transaction, online shop purchase, or payment operating system record must be within compliance of Industry standards for a variety of reasons.

The first reason is to align with firearm sales laws and avoid regulatory scrutiny. If you are not compliant, your accounts may be frozen or your services may be terminated. Sometimes, this can come with little to no warning leaving your shop with few options going forward.

Customer trust is the backbone to any business, and offering secure and seamless payment options helps to build credibility with your customers. Not only will this help to build your client base, but reliable payment solutions will open the door to online sales if you sell apparel and other merchandise.

BKW Servicing – A Partner for FFL Compliance

BKW Servicing understands the unique challenges that are faced by federal firearms licensed merchants, so our services are above and beyond typical payment processing methods. Here are just a few perks you can expect when working with us:

Customized Payment Solutions: You will be able to accept payments on-site, online, and even at gun shows with our Mobile payment processing options.

Firearm Underwriting Expertise: Never fail an audit again with our regulatory experts by your side.

Security: Security is at the heart of what we do, protecting customer data and reducing fraud risks for businesses we partner with.

Change Management: As firearm regulations change, our team will work to update you immediately and ensure your compliance.

While meeting every federal firearms license merchant requirement is necessary, this does not mean that it doesn’t come with a bit of a headache. By following our tips above and leading with a compliance-focused mindset, you can ensure a successful business. If you’re ready to simplify your FFL compliance, it’s time to work with BKW Servicing and say hello to a tailored payment solution.