Ledger Line POS / Firearms and ammunition
Firearms and ammunition processing
Firearms Merchant Account for Gun Stores and FFLs
A firearms merchant account is legal commerce that many payment companies still keep at arm's length. The rules are not set by one card network rule book but by a patchwork of state laws over a single merchant category code, plus each processor's own risk appetite.
Short answerRead this first
How do gun dealers get a firearms merchant account?
Show your Federal Firearms License, state dealer licenses, your process for shipping firearms to an FFL for transfer, age and state checks for ammunition orders, and processing history. Your acquirer assigns the right merchant category code for the states you sell in.
The right setup for firearms merchants
What fits
- A counter POS that supports your bound book workflow, plus an online setup for accessories and ammunition where state law allows.
Why it matters here
- Many mainstream platforms refuse firearms entirely, so a stable account built for the category protects your shop from sudden shutdowns.
Most common setup mistakes
- Using a payments app that bans firearm sales
- Shipping ammunition to states that restrict it
- Selling online with no way to route firearms to a licensed dealer
Send us one statement and Dewey will tell you if your setup fits your firearms business.
Step 2
Optimized POS and payment setup
We set up counter processing, layaway and deposits for your gun shop, and configure online checkout to respect state shipping limits. The goal is a setup that works for every sale your license allows.
Step 3
No long term contracts. No termination fees.
Firearms dealers have been dropped by processors with little notice, so flexibility matters. We place every account with no long term contracts and no early termination fees.
Step 4
Keep more of every swipe
Gun shops often pay a high risk rate on sales that are really ordinary card present transactions. We read your statement and show you where the pricing does not match how you actually sell.
The MCC 5723 story
In September 2022 the International Organization for Standardization approved MCC 5723 for gun and ammunition stores. In March 2023 Visa, Mastercard and American Express paused implementing it after several states moved to ban or limit the code. Visa said at the time that its rules require financial institutions to process all legal transactions.
Since then the map has split. Bank of America's merchant help center says that as of May 2025 only California, Colorado and New York require MCC 5723, while laws in several other states prohibit using it. A dealer with locations or gun show dates in more than one state may need different codes per location.
Why gun store credit card processing gets restricted
Many mainstream platforms limit firearms in their own terms. Stripe's restricted businesses list, for example, includes weapons and ammunition. Those limits are business decisions by the provider, not card network bans, which is why specialist acquirers fill the gap.
The risk underwriters actually price is regulatory: interstate firearm sales must go through a licensed dealer, and ammunition rules vary widely by state. An online firearm merchant account that cannot show compliant fulfillment is the file most likely to be declined.
Documents underwriters ask for
Expect to provide your FFL, and a Special Occupational Tax status if you deal in NFA items, plus state and local licenses. For online sales, show how firearms ship only to a receiving FFL, how ammunition orders are checked for age and destination, and which states you will not ship to.
Ranges, gunsmiths and training businesses often bundle services with retail. Break out the revenue mix so the acquirer understands what drives volume.
Gun shows and temporary locations
Bank of America notes that a dealer may need a temporary location with a different code when selling at a gun show in another state, because the required or banned status of MCC 5723 follows the state. Plan show calendars with your processor ahead of time.
Mobile terminals for shows should be tied to the right location record so deposits reconcile cleanly.
Online firearm merchant account setup
Online stores should show the receiving FFL step on the product page and at checkout, keep a list of states and localities you do not ship to, and record the transfer dealer for every firearm order. Ammunition checkouts should capture date of birth and block destinations where your state shipping rules require it.
A clear refund policy for failed background checks at the receiving dealer avoids one of the most common dispute triggers in the category.
Privacy laws that protect buyers
USA Today reported in July 2024 that California became the first state to require the firearms code while Tennessee, Georgia, Iowa and Wyoming laws banning it took effect the same day. Ask your processor how your account is coded and why, so you can answer customers who ask about privacy.
Ranges, gunsmiths and training
Many firearms businesses earn as much from lane time, classes, memberships and gunsmithing as from retail sales. Those services are generally lower risk than shipping firearms, and showing the split helps the acquirer set up the account correctly. Memberships that renew automatically should follow Visa's subscription rules, with consent, reminders and online cancellation.
If you sell NFA items, keep your tax stamp paperwork organized, because an underwriter may ask how those transfers are documented. Gun store merchant account reviews move faster when every license and transfer record is one click away.
How we handle firearms merchant account services
We place dealers with acquirers that underwrite firearms and ammunition, confirm the code assignment for each location, and set a clear descriptor. Any reserve is set by the acquirer and we show you the terms in writing first.
Dewey Kopenga, in payment processing since 2018, reviews every file himself before it goes to underwriting. Send a statement and he will review credit card processing for gun dealers fee by fee.
What to check on your firearms statement
We check these and every other line during a merchant statement analysis. New to statements? Read how to read a merchant statement.
- Card present sales priced at a high risk online rate
- Monthly minimum fees on slow months
- Chargeback fees from online ammunition orders
- Terminal rental fees above the cost of the device
Related pages
Common questions
Still not sure? Ask us directly.
Is there a merchant code just for gun stores?
Yes, MCC 5723, approved by ISO in 2022. The networks paused it in 2023, and it is now used only where state law requires it.
Which states require MCC 5723?
Bank of America reported California, Colorado and New York as of May 2025, while several other states ban its use.
Do card networks ban firearms sales?
No. Visa has said its rules require processing legal transactions. Restrictions usually come from individual providers' terms.
Can I process ammo shop payments online?
Yes with an acquirer that underwrites ammunition, plus age checks and a state shipping list that follows local law.
Do gun shows need a separate merchant account?
Often a separate location record is enough. Bank of America notes the code may differ by state, so set up show locations ahead of time.
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Prefer email? dewey@ledgerlinepos.com or call (656) 250-6939