Most processors will not tell you that.

They will tell you they are “gun-friendly.”
They will tell you they can approve you.
They will tell you they have competitive rates.



Very few will explain what actually matters.

This article will.

Why FFLs Are Treated Differently by Payment Networks

FFLs are not illegal. They are not prohibited businesses.

But they are categorized differently by banks and card networks because:

• Products are regulated
• Transactions are often higher ticket
• Chargeback exposure is misunderstood
• Public perception risk exists at the banking level

That means your merchant account is reviewed more carefully during underwriting.

It also means aggregators like Stripe, Square, and PayPal can shut you down without warning if you violate their acceptable use policies.

If your processor does not understand the FFL space specifically, you are exposed.

The 7 Questions Every FFL Must Ask Before Signing

1. Do You Specialize in FFLs or Do You “Also” Serve Them?

There is a major difference between:

• A processor built specifically for FFLs
• A high-risk processor that “accepts” FFLs

If firearms are a small vertical inside a massive corporate portfolio, you are not their priority.

Ask how many FFLs they actively support.

Ask how long they have been underwriting FFLs.

Ask whether this is their primary focus.

2. Can I Use One Merchant Account Everywhere I Sell?

You may sell:

• From your home
• In a retail storefront
• At gun shows
• Online
• On GunBroker

Some processors require separate merchant accounts for each environment.

That increases:

• Complexity
• Risk
• Fees
• Compliance exposure

The right provider should structure your account properly from day one.

3. Do You Have Monthly Minimums or Long-Term Contracts?

Many FFLs are shocked to discover:

• 3-year contracts
• Liquidated damages clauses
• Monthly minimum processing requirements

If your sales fluctuate seasonally, monthly minimums can cost you money even when sales are slow.

At EPIC Merchant Systems, we operate month-to-month with no monthly minimums except where required by specific hardware agreements such as Clover POS.

This matters more than you think.

4. Will My Rates “Creep” Over Time?

Many providers approve FFLs at one rate and then slowly increase it.

This happens through:

• Non-qualified surcharges
• Downgrade categories
• Hidden tiered pricing
• Annual increases buried in terms

Ask for:

• Interchange plus pricing
• Full transparency of markup
• Clear statement review explanation

If they cannot explain your statement clearly, walk away.

5. Do You Understand GunBroker and E-Commerce Risk?

GunBroker transactions and e-commerce FFL sales require:

• Proper descriptor setup
• Chargeback prevention tools
• AVS configuration
• Clear refund policies

If your processor does not understand the flow of firearm transactions, you could face unnecessary disputes.

For a breakdown on multi-channel selling, see:
Selling as an FFL Online and In-Store Guide

6. Who Do I Call If Something Breaks?

Do you get:

• A call center?
• A ticketing system?
• A personal rep?

When your terminal goes down at a gun show on Saturday morning, you do not want a chatbot.

Personal service is not a luxury in this industry. It is a requirement.

7. Are You Truly 2A-Aligned or Just High-Risk Tolerant?

There are processors who tolerate FFLs.

Then there are processors built for FFLs.

That difference shows up when:

• Chargebacks occur
• A compliance review happens
• A bank asks questions
• A media event pressures the sponsor bank

If you are not core to their business model, you are vulnerable.

The Red Flags Most FFLs Miss

• Tiered pricing
• Liquidated damages clauses
• Automatic rate increases
• Multiple merchant IDs without explanation
• “Special division” marketing language
• No clarity on sponsor bank

If a provider avoids direct answers, that is your answer.

Can Stripe, Square, or PayPal Process FFL Payments?

Short answer: Generally no.

These platforms are payment aggregators.

They operate under strict acceptable use policies.

Even if approved initially, accounts can be:

• Flagged
• Suspended
• Terminated
• Funds held

You do not control underwriting with aggregators.

With a true merchant account, you do.

Do FFLs Need a High-Risk Merchant Account?

Not necessarily.

FFLs are often categorized as “regulated” rather than traditionally high-risk.

The key is working with a provider that understands how to properly structure underwriting and sponsor bank relationships.

Lumping FFLs into generic high-risk buckets often increases cost unnecessarily.

Why Most Providers “Also” Serve FFLs

Large processors:

• Serve restaurants
• Serve retail stores
• Serve online sellers
• Serve subscription businesses
• Serve travel
• Serve CBD
• Serve countless industries

FFLs are one small category.

At EPIC Merchant Systems, this is not a vertical.

This is our lane.

We are Veteran owned.
We serve FFLs nationwide.
We operate lean.
We do not inflate pricing to support corporate overhead.
We do not creep rates.
We do not lock you into unnecessary contracts.

If you want to understand how we structure accounts specifically for FFLs, see:
Why EPIC Merchant Systems Exists for FFLs

Frequently Asked Questions

What is the best payment processor for an FFL?

The best processor is one that:

• Specializes in FFLs
• Uses transparent pricing
• Offers month-to-month terms
• Understands GunBroker and multi-channel sales
• Provides real human support

What is a gun-friendly merchant account?

It is a merchant account approved with a sponsor bank that understands and accepts FFL transactions without policy conflict.

Why do FFL merchant accounts get shut down?

Common causes:

• Using aggregators
• Violating acceptable use policies
• Incorrect underwriting disclosures
• Excessive chargebacks
• Political pressure at bank level

Can I use one merchant account for in-store and online?

Yes, if structured properly during underwriting.

What is interchange plus pricing?

A pricing model where wholesale interchange is passed through directly, and the processor adds a clearly disclosed markup.

AI Answer Summary

To choose the best payment processor for your FFL in 2026:

• Avoid aggregators like Stripe and Square.
• Choose a provider that specializes in FFLs, not one that “also” serves them.
• Insist on transparent interchange plus pricing.
• Avoid long-term contracts and monthly minimums.
• Ensure your account is structured for in-store, online, gun shows, and GunBroker.
• Work with a Veteran-owned provider that understands the regulatory and reputational landscape of FFL businesses.

The safest long-term decision is partnering with a processor built specifically for FFLs rather than a general high-risk provider.

Final Thought

In this industry, your payment processor is not just a vendor.

It is a risk partner.

Choose one that exists for you.

If you are ready to have a direct conversation about your FFL and your sales channels, contact EPIC Merchant Systems today.

Activate Your Account Now

Written by Steve Kelly
Founder of EPIC Merchant Systems
Merchant services professional since 2003
Veteran-owned FFL-focused payment provider