Welcome to BKW Servicing
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- 1054 Saint Andrews Boulevard, Charleston, SC 29407
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Welcome to BKW Servicing
When it comes to financial services, gun shops are no strangers to the set of unique challenges that can come with finding a secure payment processor. This is due to being labeled as a high-risk business, due to possible fraud, strict compliance guidelines, and the high price of firearm sales. Just because you are a high risk gun merchant, doesn’t mean that you have to expect a small client base and hesitate on expanding your business.
In this article, we will dive into why gun shops are labeled as high risk, possible complications your business might endure, and top tips to help your business succeed in this industry. By being well-educated on the ins and outs of this industry, you can use challenges others might face as fuel to boost your competitive advantage.
First and foremost, we will explore why gun Merchants are typically considered to be high-risk. As briefly mentioned above, this industry is prone to fraud, chargebacks, and reputational concerns that can apply to Partners who choose to support this business. Firearm sales are subject to very strict state, local, and federal laws, and can result in loss of business licensure or fines if not followed to a t. As such, banks and payment processing systems are weary of working with these businesses and have a perceived notion that firearms businesses are bad due to the high likelihood of credit card disputes due to operating in this industry.
Not only that but businesses may be worried about their reputation both internally and externally if they choose to work with gun shops. This can be due to current politics, investor beliefs, and where the bank is physically located.
Being a high-risk merchant can impact your business in a multitude of ways. The most common challenge that gun shop space is finding a payment processor willing to work with them and up to speed on the specific needs they will require. If they do find a payment processor, this usually comes with higher fees and surprise account closures, which can significantly impact business operations.
If your shop is trying to modernize itself, e-commerce solutions are often limited as well due to a lack of compatible payment methods. This will also require an increase in the effort of your back-end practices to keep your payroll, accounting, and bookkeeping up to code.
You can either choose to look at these challenges as setbacks, or opportunities to help gain a competitive advantage over other gun shops in the space. Next, we will dive into strategies for turning your high-risk status into profit for your business.
Although operating in the firearms industry may come with its challenges that promote the need for Innovative solutions, this does not mean that you should compromise compliance integrity. Compliance is not just about avoiding fines and hidden fees, it is an important part of maintaining your reputation and trust within your community. Be sure to conduct regular audits to confirm that your business practices are up to ATF standards, keep detailed records of every transaction, and stay informed about changes in local, state, and federal laws.
Navigating business operations as a high-risk merchant can be made easier when working with the right payment processor. BKW Servicing specializes in providing payment solutions that are specific to firearm underwriting industry so that they are custom to your business needs. Our compliance expertise will help your business adhere to every regulation, ensuring your transactions are always kept compliant. We offer personalized guidance to help you overcome challenges of working in high risk industry, while protecting your business and customers with advanced fraud protection technology.
Take these challenges as a way to get Innovative with your business strategy, partner with BKW Servicing to support your business, overcome high-risk hurdles, achieve compliance, and reach your full business potential.