Firearms retailers, FFL dealers, online gun stores, and shooting ranges face payment processing challenges that most industries do not. Visa and Mastercard permit firearms transactions through compliant merchant accounts, but most mainstream processors — including Stripe, PayPal, and Square — have prohibited firearms sales in their terms of service since 2018. Getting a stable merchant account for an FFL business requires working with acquiring banks that specifically underwrite the category.
Daystar Payments works with FFL dealers, firearms retailers, shooting ranges, and ammunition sellers to secure merchant accounts through acquiring banks that understand the regulatory environment and compliance requirements of the firearms industry.
The difficulty is not legal — firearms sales by licensed dealers are fully legal under federal law. The issue is processor policy. After several high-profile incidents in 2018, Stripe, PayPal, and Square updated their terms of service to prohibit firearms transactions on their platforms. This left FFL dealers with fewer options than they had previously.
Acquiring banks that do underwrite firearms transactions require FFL documentation, compliance with federal and state firearms laws, and typically a higher reserve requirement than low-risk categories. Age verification for online firearms-adjacent sales (accessories, parts) is also reviewed during underwriting.
Daystar places firearms merchants with acquiring banks that specifically underwrite the category — not banks that tolerate it reluctantly. The merchant account includes gateway integration with major e-commerce platforms (Shopify, WooCommerce, Magento), in-person terminal solutions for physical retail locations, and chargeback-prevention tools calibrated for firearms retail dispute patterns. Reserves are negotiated individually based on your processing history, FFL status, and business model.
Yes. Standard merchant accounts from processors like Stripe and PayPal explicitly prohibit firearms sales. You need a dedicated firearms merchant account through an acquiring bank that underwrites the category. Daystar provides these accounts to FFL dealers and compliant firearms retailers.
Primary requirements include your current Federal Firearms License (FFL), business registration documents, business bank statements (3–6 months), website compliance review, and state-level retailer licenses where applicable. Online retailers may also need to demonstrate age verification processes for restricted purchases.
Yes. Sellers of firearms parts, accessories, and cleaning supplies — without the firearms themselves — often have more acquiring bank options available than FFL dealers. Underwriting depends on the specific product mix and whether any products are regulated under the NFA or state law.
Yes. Shooting ranges are generally lower-risk than firearms retail, especially when the retail component is secondary to the service revenue. Daystar structures accounts for ranges with retail operations to optimize rates for both revenue streams.
FFL dealers with complete documentation typically receive decisions within 3–5 business days. Online firearms retailers may take 5–7 business days as underwriters verify FFL documentation and compliance processes.