Firearms Payment Processing Fees & MCC Guide

Understand firearms payment processing fees, MCC classification, chargeback costs, and how to reduce overall rates with the right FFL merchant account.

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How Firearms Payment Processing Fees Work

Firearms processing is treated as high-risk, which means pricing is based on interchange-plus with an added risk margin. Exact rates depend on your product mix, volume, chargeback risk, and underwriting profile.

Base cost: interchange fees set by Visa/Mastercard.
Markup: processor margin for firearms merchants.
Per-transaction fee: charged on each approval.
Monthly fees: gateway, statement, risk monitoring.

Understanding Firearms MCC (Merchant Category Code)

Firearm stores are often assigned an MCC tied to sporting goods or specialized firearm retail. MCC classification influences how banks monitor risk and how fees are structured.

MCC transparency: Know your assigned code and how it affects reporting.
Enhanced monitoring: Some MCCs trigger additional risk reviews.
Underwriting alignment: Must reflect actual product mix (firearms, ammo, parts).

Why Firearms Merchants May Get Reserves

Some new firearm retailers may start with a rolling reserve to cover potential chargebacks. As clean history builds, reserves may be reduced or removed.

Used to protect against disputes and fraud.
Typically reviewed after 3–6 months of clean history.
Request release schedule in writing during setup.

Firearms Chargebacks & Cost Control

Because firearms are regulated and high-ticket, having clear transfer documentation and age verification reduces disputes and protects your account.

Proof of FFL transfer: essential for dispute defense.
AVS/CVV: ensures cardholder authenticity.
Clear policies: published terms limit “item not received” claims.

How to Lower Your Firearms Processing Rates

Provide clean underwriting documents to avoid higher risk margin.
Use ACH/eCheck for large orders to lower per-transaction cost.
Reduce chargeback ratios with proactive customer communication.
Negotiate margin reductions after good processing history.

FAQ: Firearms Payment Processing Fees

Are firearms always high-risk?

Yes, due to regulation and ticket size. However, a clean profile can earn lower margins over time.

Can I get interchange-plus pricing?

Yes, with gun-friendly processors that support transparent pricing.

Why did I receive a reserve?

New accounts or high-risk catalogs often start with a rolling reserve until trust is established.

How do I avoid shutdowns?

Use a processor that underwrites firearms explicitly and follow FFL transfer protocols.