2a Friendly Payment Processing

2a Friendly Payment Processing: Insider’s Guide

Table of Contents

1 2a Friendly Payment Processing: Insider’s Guide

A 2A-friendly payment processing solution is a specialized merchant account designed to meet the unique credit card processing needs of businesses related to the Second Amendment (2A), such as firearms dealers and gun ranges. 2A-friendly credit card processors support a variety of related businesses like ammunition retailers, tactical stores, and hunting gear stores. This is all done while fully complying with federal and state laws.

QuadraPay has been offering high-risk merchant accounts since 2016. Our team has created this guide that answers all your possible questions about 2A-friendly credit card processors. Let’s begin.

Features of 2A-Friendly Credit Card Processors

Businesses operating in the firearms industry struggle to find a good payment processing solution; this is primarily because of the restrictive policies of mainstream payment service providers. When a merchant works with a 2A-friendly credit card processor, then he gets a fully compliant and truly efficient merchant processing solution for firearms-related businesses.

These specialized payment processors ensure full compliance with mandatory regulations, such as ensuring that only eligible customers complete the transaction, carefully performing the background check, and also complying with FFL requirements.

Data Security & Encryption

Merchant service providers use advanced encryption technology to maintain data secrecy while performing transactions. This helps reduce the risk of chargeback, fraudulent transactions, and unauthorized access. Our processing partners comply with the PCI DSS standard and use end-to-end encryption technology to maintain the confidentiality of the transaction information.

Affordable Pricing

As discussed earlier in the guide, finding an A2-friendly payment processor may not be easy. That does not mean that you should choose an expensive provider. Our payment processing partners can directly board such accounts at highly affordable rates. You can choose from a variety of pricing options, such as flat-rate, interchange plus, or tiered pricing. Many payment processors charge excessive processing fees, but our partner providers believe in offering reasonable pricing structures to merchants irrespective of the industry. Merchants get access to funds quickly without unnecessary delays and surprises.

High-Risk Merchant Account Expertise

Firearms-related businesses are always categorized as high risk by sponsor banks, and that makes it difficult for these businesses to get a merchant account. Our core expertise lies in assisting merchants from various high-risk industries, including those working in guns, vaping, gaming, hemp, and CBD. The combined massive experience of our team and our processing partners makes our solutions perfect for all merchants working in 2nd Amendment-related industries.

Chargeback & Fraud Prevention

Firearms businesses are sometimes targeted by fraudsters, and this can result in excessive chargebacks. To avoid such a situation, our payment processing partners use advanced chargeback protection services that help merchants get a notification when a dispute is raised. Along with that, our processing partners regularly monitor the account to identify and stop risky transactions.

Alternative to Anti-Gun Payment Processors

Any payment processor that does not support Second Amendment-related businesses, we call such processors “anti-gun payment processors. They are infamous for setting up accounts and immediately shutting them down without any notice. However, our high-risk-friendly payment processing partners take time to onboard accounts, but when the activation is done, these accounts stay active for a long time. Our solutions can be easily integrated into well-known content management systems.

Types of Credit Card Processing Solutions for 2A-Friendly Businesses

The payment processing requirement of a 2A-friendly business varies depending upon how it operates and what kind of product it sells. In general, there are two types of payment solutions used in this industry. Let us explore these in detail.

2A-Friendly Retail Credit Card Terminals & POS Systems

For any retail gun store, shooting range, or FFL dealer, we recommend a retail credit card terminal connected with the point of sale system. By using this device, merchants can accept in-person transactions, also known as face-to-face transactions. With this kind of setup, merchants can accept high transaction volume while being fully compliant with the mandatory compliance requirements.

These retail credit card terminals support a variety of payment methods, such as credit cards, debit cards, and QR code payments, as well as contactless transactions. You can easily connect these brand new terminals with your existing inventory management and sales tracking software. These heavy-duty machines are perfect to be used in the rugged environment of a gun or sporting goods store.

2A-Friendly Online Credit Card Processing

For e-commerce firearm stores as well as online tactical accessories stores, we recommend the online credit card processing solution. With this specialized payment processing solution, merchants can accept credit cards, debit cards, ACH, and wallet payments directly on the website. Integration is available for well-known shopping carts such as Magento, WooCommerce, Prestashop, and Zencart. With this solution, merchants can also accept recurring payments. This kind of payment solution is perfect for shooting ranges and subscription ammo box services.

Application Process for 2A-Friendly Payment Processing

The application process for a 2A-friendly payment gateway and merchant account involves various steps. Let us be honest with you; it may be a little more time-consuming compared to a merchant application from any regular industry like a boutique or barber shop. The payment processing company ensures that it collects all the required documents, verifies them, and checks if the merchant is working in full compliance with regulatory requirements.

The initial step includes the preparation of documentation. In this step our merchants collect the KYC documents, which include documents related to business registration and the personal identification of the directors. The KYC document also includes special licenses to operate in this kind of industry.

Once the merchant has collected all these documents, they have to be forwarded to the payment processor for evaluation. The underwriting team will ensure that all the documents, along with your details, are checked. The payment processor may also run a credit check.

If everything goes well, the payment processor will send you the details of the integration. In case you have applied for a retail credit card terminal, then you will receive details about the installation of the terminal. Please rest assured that the payment solution provider will also have a support team ready to assist you if needed. Once everything is set up, you can start accepting live transactions.

Know Your Customer (KYC) Requirements for 2A-Friendly Payment Processing

It is mandatory for any payment processor, irrespective of the industry it operates in, to comply with various regulations such as AML and KYC. Let’s explore some of the key documents that you will have to submit to the payment processor for the approval of your account.

Business Documents

The most important item is the federal firearms license. This license is required if any business wants to sell firearms and related items. A business registration document is also mandatory; for this, you can submit the certificate of incorporation. For tax purposes, an EIN is required. In some states, a sales tax permit may also be required.

Identity Verification (Business Owners)

For the identity verification of the business owners, you can submit a government-issued photo ID that can be either a driver’s license or passport. The payment processor will need your social security number as well. To confirm the residential address of the business owner, you can provide the latest utility bill.

Financial & Banking Information

To confirm your bank account, you can submit a voided check or a letter from your bank confirming the account number, routing number, and other details. If you are switching from a provider, then you will have to submit the latest processing history.

Website & Business Operations Details

If you are applying for an online 2nd amendment-friendly payment gateway, then your website must be active and should comply with firearms sales regulations. The terms and conditions page should clearly state business policies and legal compliance. Along with that, the shipping and the return policy should have clear information about how items are shipped and returned. The website must have a tool that verifies the age of the user.

Compliance & Risk Assessment Documents

Additional documents that may be required include a firearms merchant account addendum, compliance documentation, AML policies, and proof of insurance.

By fulfilling the KYC requirement, the merchant and the payment processors comply with federal, state, and local regulations. It also helps in reducing the risk of fraud and legal transactions.