If you’re accepting credit card payments, you need more than just a payment terminal—you need a merchant account. But what exactly is it, and how is it different from services like PayPal or Square? Learn why this often-misunderstood account is essential for FFLs and all types of firearm businesses.
Episode Transcript
Hey everyone, and welcome to Firearm Payments 101, brought to you by TacticalPay!
Today, we’re answering a foundational question that comes up all the time in the firearms industry: What is a merchant account? Why do you need one, how does it work, and how is it different from using a payment aggregator like Square or PayPal?
Let’s start with the basics. A merchant account is a type of business bank account that allows you to accept credit and debit card payments from your customers. It’s not the same as a regular business checking account. Instead, it acts as a temporary holding place for funds from card transactions before they’re transferred to your actual business bank account.
For firearms businesses—whether you’re an FFL, a range, or an online retailer—a merchant account is essential. That’s because most mainstream payment aggregators won’t work with gun-related businesses due to risk and compliance policies. So if you’re using a platform like Square, Stripe, or PayPal, you’re at risk of having your account shut down with little or no warning.
That’s where a dedicated merchant account tailored for the firearms industry comes in. These accounts are set up specifically for businesses like yours. They’re managed by processors who understand the legal landscape, compliance requirements, and risk factors involved in selling firearms, ammunition, and related products.
So how does a merchant account actually work? When a customer swipes or enters their card to make a purchase, the transaction data is sent through your payment gateway to the processor. The funds are then deposited into your merchant account, usually within one to two business days, and from there, transferred to your business bank account. It’s a seamless process—when everything’s set up correctly.
The key takeaway here is this: If you’re running a firearms business, you need a merchant account that’s designed with your industry in mind. That way, you can process payments reliably, stay compliant, and avoid sudden disruptions to your cash flow.
Thanks for watching this episode of Firearm Payments 101. If you found this helpful, make sure to subscribe so you never miss an update. And if you’re looking for payment solutions that are tailor-made for firearms businesses, head over to TacticalPay.com to learn more.