The short answer
Apply for a dedicated merchant account (not a Square-style app), tell the underwriter everything you sell, and send a complete document package: FFL, state license, ID, EIN, voided check and three months of statements. With everything in order, most dealers are approved in 1–5 business days.
Why Firearm Businesses Get Turned Away
Firearms are one of the most heavily regulated retail categories in the country, yet banks and payment companies routinely label them "high risk." That label has more to do with regulatory complexity and reputational concerns than with fraud. In-person firearm sales come with ID checks and background checks.
The result: Square, Stripe, PayPal, Shopify Payments and Clover all prohibit firearm sales in their terms. Dealers who sign up anyway are usually closed once the platform notices what they sell, often with their money held for 90 days or more. If that has just happened to you, start with what to do when your account is shut down.
What about the federal "fair banking" changes? A 2025 executive order and a 2026 rule stopped bank regulators from using "reputation risk" against lawful businesses. That helps with your bank account, but those rules don't govern card networks or the private terms of payment platforms. For card processing, the practical answer is still a merchant account approved for firearms: a firearm merchant account.
Keep the two accounts straight: your business bank account holds your money; your merchant account lets you accept cards and deposits the sales into that bank account. If a bank closes your business bank account because you sell firearms, federally regulated banks now have a complaint path through their regulator (the OCC or FDIC). A merchant account problem is a different fix.
Merchant Account vs. Square-Style Apps
There are two ways to accept cards, and for a firearm business only one is safe.
Payment facilitator (Square, Stripe, PayPal)
- • Instant sign-up, no real underwriting
- • You share one master account with thousands of businesses
- • The platform's rules decide what you can sell, and they exclude firearms
- • Closed when discovered, often with funds held
Dedicated merchant account
- • A human underwriter reviews your business
- • An account in your business's name with an acquiring bank
- • Approved knowing you sell firearms
- • Stable as long as you operate as approved
The extra paperwork is the point. Once a bank has approved you as a firearms business, the thing that gets dealers shut down elsewhere is already on file and accepted.
What Underwriters Look For
Underwriting is the bank's review of your business before it approves your account. For a firearm business the underwriter wants to see three things:
- You're licensed. A current FFL of the right type, plus any state license your state requires.
- You're honest about what you sell. Firearms, ammunition, parts, accessories, NFA items: everything, listed up front.
- You run a sound business. Bank statements that show steady deposits, and, if you already accept cards, a clean chargeback history. If you sell online, a website that meets card-network requirements.
Firearm Merchant Account Document Checklist
- ✓Federal Firearms License: Type 01 dealer, 02 pawnbroker, 07 manufacturer; plus SOT status if you deal in NFA items
- ✓State dealer license or permits, if your state requires them
- ✓Government ID for each owner
- ✓EIN and business formation documents
- ✓Voided business check for deposits
- ✓Three months of bank statements
- ✓Three months of processing statements, if you already accept cards
- ✓Website URL with refund, shipping and age policies, if you sell online
The Application, Step by Step
- 1
Gather your documents
Use the checklist above. A complete package is the single biggest factor in a fast approval.
- 2
Get your website ready (if you sell online)
Refund, shipping (ship-to-FFL), age and contact policies need to be visible before you apply. See selling online.
- 3
Apply and disclose everything
A short digital application with no printing or faxing. List every product category and every way you sell: counter, online, phone, gun shows.
- 4
Underwriting review
The bank reviews your file and may ask a follow-up question or two. Answer quickly. Most START merchants are approved in 1–5 business days.
- 5
Set up and start processing
Your Authorize.Net gateway is usually live within 24 business hours of approval, connected to your terminal, website or both.
Common Reasons Firearm Applications Get Declined
| Problem | How to avoid it |
|---|---|
| Expired or expiring FFL | FFLs renew every three years. Renew early, and include the current license. |
| Products not disclosed | List everything, including NFA items, suppressors and 80% lowers, even if they're a small share of sales. |
| Website missing required policies | Add refund, shipping, age and contact information before applying. |
| Business details don't match | The legal name, address and EIN should match across your FFL, bank account and application. |
| High chargebacks on past statements | Explain the cause and what you've changed. See chargeback limits. |
Brand-New FFL? You Can Still Get Approved
Some processors require months of processing history or $10,000+ in monthly volume, which shuts out new dealers. Others, including START, work with new businesses. Without processing history, the underwriter leans on your FFL, your business documents, your bank statements and, if you sell online, your website.
Tip: open your business bank account early and run your deposits through it. A few months of clean statements makes approval smoother.
Frequently Asked Questions
What documents do I need?
Your FFL, any state dealer license, ID for each owner, EIN and formation documents, a voided business check and three months of bank statements, plus processing statements if you already accept cards.
Can a new FFL get approved?
Yes. Underwriters use your FFL, business documents, bank statements and website in place of processing history.
How long does it take?
Most START merchants are approved in 1–5 business days once everything is submitted, and the gateway is usually live within 24 business hours of approval.
I run a home-based FFL. Can I get a merchant account?
Yes. Home-based FFLs are approved the same way as storefronts: a current FFL, business documents and bank statements. Make sure the address on your application matches your license, and list how you sell (transfers, online, gun shows).
I only sell ammunition or accessories. Do I still need a firearm-friendly processor?
Usually, yes. Federal law generally doesn't require an FFL to sell ammunition or accessories, but many mainstream processors prohibit them anyway, and some states license ammunition sales. Disclose exactly what you sell and a firearm-friendly processor can approve it.
Are any products excluded?
Some processors exclude certain items even for approved firearm dealers, such as 80% lowers and jigs, body armor, or certain NFA items. Ask for the list of approved and excluded products in writing before you apply. Selling suppressors? See taking payments for NFA items.
Do I have to disclose NFA items and suppressors?
Yes. Disclose every product category. Products discovered after approval are one of the most common reasons accounts are closed.
Ready to apply?
Firearm-approved merchant accounts, with most dealers approved in 1-5 business days. START has been in payments for 20+ years and has set up more than 60,000 Authorize.Net accounts.
New to this topic? Start with our Firearm Merchant Accounts overview.
