Few things damage a firearms business faster than a merchant account shutdown.

Funds get frozen.
Transactions stop processing.
Sales come to a halt.

What makes this worse is that most firearm merchant account shutdowns are preventable. They happen not because the business is illegal, but because the payment setup was never structured correctly for firearms activity.

This article explains why firearms merchant accounts get shut down, the most common red flags banks see, and what firearms businesses can do to reduce avoidable risk.

Legal Does Not Mean Processor Approved

One of the biggest misunderstandings in the firearms industry is the belief that legality equals approval.

Firearms sales may be legal, but payment processors operate under bank risk policies, not firearm law.

Banks evaluate:

• Product categories
• Sales channels
• Transaction risk
• Chargeback exposure
• Regulatory scrutiny

If a merchant account is approved without full firearms disclosure, it is often only a matter of time before a review occurs.

This is why working with firearms friendly merchant accounts matters.

The Most Common Reasons Firearms Merchant Accounts Get Shut Down

Undisclosed Firearms Activity

Adding firearms, ammunition, or parts after approval without disclosure is one of the fastest ways to trigger a shutdown.

GunBroker or Marketplace Sales Added Later

Marketplace sales increase risk. If GunBroker activity is not disclosed during underwriting, accounts are often flagged.

Website Compliance Issues

Missing policies, incorrect product descriptions, or checkout flows that do not align with underwriting frequently trigger reviews.

Mismatched Gateways or Descriptors

Using a gateway or transaction descriptor that does not match the approved business model raises red flags.

Rapid Growth Without Risk Controls

Sudden spikes in volume or ticket size can trigger monitoring if not planned for in advance.

Why Firearms Are Classified as High Risk

From a banking perspective, firearms fall into the high risk merchant account category due to:

• Regulatory oversight
• Higher average ticket sizes
• Card not present transactions
• Marketplace exposure
• Political and reputational risk

High risk does not mean unsupported.
It means enhanced underwriting and monitoring.

Businesses that understand this are far more likely to remain stable long term.

How to Prevent Firearms Merchant Account Shutdowns

Shutdown prevention starts before the first transaction is processed.

Firearms businesses should:

• Fully disclose all product categories
• Disclose all sales channels including GunBroker and ecommerce
• Use gateways approved for firearms and marketplaces
• Ensure website and checkout compliance
• Align transaction descriptors with underwriting
• Work with a provider that understands firearms risk

For a breakdown of payment processing across sales channels, read our guide on gun store payment processing.

How EPIC Merchant Systems Helps Reduce Avoidable Risk

EPIC Merchant Systems works with firearms businesses to structure payment processing correctly from the beginning.

We focus on:

• Firearms aware underwriting
• Proper gateway selection
• GunBroker and ecommerce alignment
• Risk based volume planning
• Long term account stability

Our goal is not quick approvals.
Our goal is approvals that last.

Gun Store Merchant Account Shutdown FAQs

Why do firearms merchant accounts get shut down?

Most firearms merchant account shutdowns occur due to undisclosed firearms activity, adding ecommerce or marketplace sales after approval, website compliance issues, mismatched gateways, or transaction patterns that do not align with underwriting.

Is it legal for processors to shut down firearms businesses?

Yes. Payment processors operate under bank risk policies, not firearms law. A firearms business can be fully legal and still have its merchant account terminated if it violates processor risk guidelines.

Are firearms considered high risk by payment processors?

Yes. Firearms are classified as high risk due to regulatory scrutiny, higher average ticket sizes, card not present transactions, and marketplace exposure. High risk does not mean unsupported, but it does require enhanced underwriting.

Does selling on GunBroker increase shutdown risk?

GunBroker sales increase risk if they are not disclosed and approved during underwriting. Marketplace transactions require specific gateways and underwriting alignment.

Can a shut down firearms merchant account be reinstated?

Sometimes, but it depends on the reason for the shutdown. Prevention through proper setup is far more effective than attempting reinstatement after termination.

How can EPIC Merchant Systems help prevent shutdowns?

EPIC Merchant Systems structures firearms merchant accounts with full disclosure, firearms aware underwriting, approved gateways, and risk aligned transaction planning to reduce avoidable shutdowns.

Ready to Protect Your Firearms Merchant Account?

If you operate a firearms business, payment processing is not something to gamble with.

Risk cannot be eliminated, but it can be managed correctly.

Talk to a Firearms Payment Specialist at EPIC Merchant Systems

We will:

• Review your current payment setup
• Identify shutdown risk triggers
• Align gateways and underwriting
• Support GunBroker and ecommerce sales
• Help protect long term account stability

👉 Get a Firearms Merchant Account Review
👉 Talk to a Firearms Payment Specialist

Ready to get after it?

Activate Your EPIC Account HERE