Payment Compliance for Firearm Dealers

Every merchant account carries a merchant category code (MCC) that tells the card networks what kind of business you are. In 2022 a firearms-specific code, MCC 5723, was created. The card networks paused it in 2023, and states have since split sharply over whether it must, or must not, be used:

A federal bill to override the state requirements passed the U.S. House in July 2026 but hadn't become law at the time of writing. You don't assign the code; your processor does. So the question to ask is simple: "Do you set up firearm merchants correctly for my state?"

A chargeback happens when a customer disputes a charge with their bank. Too many, and the card networks fine your processor and your account can be closed. Visa lowered its "excessive" threshold to 1.5% in April 2026: fraud reports plus disputes as a share of your online and phone orders, once you have at least 1,500 in a month. Mastercard flags merchants at 1.5% chargebacks with at least 100 in a month.

In-store sales rarely come close: the card is present, the customer shows ID, and a background check is run. Online sales carry more risk. To stay well under the limit:

• Turn on AVS and CVV checks and fraud filters for online orders
• Ship firearms only to an FFL for in-person transfer
• Use a billing descriptor customers recognize on their statement
• Answer customer emails fast. Most "friendly fraud" starts as an unanswered question

Suppressors and other NFA items add a risk of their own: months can pass between payment and pickup, so set expectations in writing (see taking payments for NFA items).

When a dispute does land, here's how to respond to a chargeback and win it. More on spotting fraud: 12 signs of card-not-present fraud.

The Payment Card Industry Data Security Standard (PCI DSS) applies to every business that accepts cards. For most small dealers it means:

• An annual self-assessment questionnaire (SAQ) about how you handle card data
• Periodic security scans if you take payments online
• Never writing down or storing full card numbers, and using up-to-date, secure terminals

Many processors charge a monthly PCI non-compliance fee until the questionnaire is done. Ask who helps you complete it. See our PCI compliance guide.

Card networks require online stores to clearly show:

• ✓Refund and return policy
• ✓Shipping policy, including ship-to-FFL for firearms
• ✓Business name, phone, email and address
• ✓Privacy policy and terms of sale

Firearm sellers also need clear age requirements. Under federal law, licensed dealers can't sell handguns or handgun ammunition to anyone under 21, or long guns and their ammunition to anyone under 18. Some states add more. California and New York, for example, require background checks for ammunition purchases. Build age confirmation and state shipping restrictions into your checkout.

Full walkthrough: accepting credit cards on your online gun store.

Your account was approved for the business you described. Tell your processor before you:

• Add a new product category, such as suppressors, other NFA items or ammunition
• Start selling in a new way: online, at gun shows, or by phone
• Change ownership, business name, address or bank account
• Expect a big jump in volume, such as a large order or a seasonal rush

And keep your FFL current. Licenses renew every three years, and an expired license can put your account on hold.