Process Gun Payments Across All 50 States

For federal firearms license holders, navigating payment processing can be nothing short of a challenge. Laws and regulations that play into compliance policies very depending on where your shop is located, and where you are doing business. Thus, maintaining compliance while optimizing your operations can be demanding. In this article, we will explore the solutions and benefits of working with an experienced provider such as BKW Servicing, so that you can process gun payments efficiently and securely across all 50 states in the USA.

Hurdles of Multi-State Payment Processing

To start, we will explore a few of the challenges you may face when operating in multiple different states as a gun shop. This way, you will know what to look out for and what to prepare for.

• Regulatory complexity: One of the most heavily regulated Industries in the United States is the sale of firearms. Each different state has its own local laws that often vary significantly based on political views and the culture of the location. FFL holders must ensure compliance with both the origin state laws and regulations where the shop is based, and the state in which transactions are being completed. So, making sure that your record keeping and bookkeeping are up to date is critical.
• Difficulty partnering with banks: Traditionally, banks and payment processors are hesitant to work with firearm businesses due to them being considered high-risk. The high likelihood of fraud in the firearm industry, difficult compliance measures that must be maintained, and ever-changing rules, deter financial institutions from wanting to partner with these businesses.
• Reputation concerns: It’s no secret that the firearms industry is one that comes with scrutiny and a lot of different opinions. As such, payment processors may be less inclined to work with gun shops due to current political climates, stakeholder opinions, and fear of backlash.
• Fear of scalability: As gun shops expand their client base and reach multiple different states, the margin of error for compliance issues grows larger. Businesses that do not have a perceived sustainable growth rate are more challenging for banks to rationalize partnering with.

How to Combat These Setbacks

Lucky for you, it’s not all challenges and hurdles, you just need to know how to work around them! Here are some of our top tips for seamless gun payment processing as you vet different financial institutions to find your perfect match.

Partner With an Expert

Partnering with a reputable payment processor that specializes in federal firearms licensing businesses is the best way to ensure that you will be able to operate despite compliance challenges. These providers are well-versed in the firearms industry and understand the unique requirements they need to succeed. These payment processors will also use modernized technology to support secure payments, compliance checks, and easy integrations with the systems you currently have in place. Not only that, but these tools are often automated, helping you stay on top of your back-end practices without having to sacrifice the customer service you give upfront. Tools such as automated background checks and transaction alerts can help reduce the risk of fraud and keep you informed about your current compliance standing.

Fraud Prevention

We have mentioned fraud a few times in this article, and for good reason! Fraud unfortunately impacts high-risk industries such as the firearm industry, due to the large price of transactions and lack of support from financial institutions. In order to lessen security risks, it is important to ensure that your payment provider uses encryption technology to prevent fraud within your organization. These secure payment platforms not only help protect your business’s data but also your customer’s data when they choose to process the transaction with you. This is critical to building client trust and especially important for businesses that depend on word-of-mouth referrals to grow their client base locally.

Benefits of Specialized Payment Processing

There are many benefits of investing in specialized payment processing for your gun shop. You will be able to cater to a broader audience by enabling seamless interstate interactions, improving your sales potential. This streamlined process will confirm that customers from any state can purchase firearms without disruptions. Especially payment processors will also help you navigate compliance regulations to minimize risks such as hefty fines and even loss of licensure.

With enhanced security, you will be able to spend more time catering to customers, and last time worried about possible data breaches. Your investment in this modern technology will show your commitment to responsible business practices, which is a great thing to show to auditors and your clients.

By automating your compliance and payment operations, you will save time and reduce the risk of errors. This extra time will allow you to focus on building customer relationships, showing up to events such as gun shows, and planning for expansion, rather than worrying about regulatory scrutiny.

Working With BKW Servicing

BKW Servicing can help you expand your business across all 50 states as a trusted payment processing partner. With our years of industry expertise, BKW Servicing is well-versed in the challenges faced by federal firearms licensure merchants. Our team is educated in both state and federal guidelines, to be able to spot any margin for error and ensure your transactions are compliant.

We also offer tailored solutions designed specifically for the nature of your high-risk transactions. From compliance tools to secure gateways, you can ensure you have everything you need to feel confident in your payment practices. If you ever do want to expand your education, which we highly encourage, are reliable support team will be able to assist with any questions and alert you of any policy changes that you should be aware of.

Enjoy seamless transactions and customized solutions by working with BKW Servicing as your trusted payment processor, contact us today!