High-Risk Merchant Accounts · By Zach Schleien · · 10 min read
Credit Card Processing for Gun Shops and FFL Dealers
Counter terminals, online orders and range memberships on an account that is actually approved for firearms, plus the merchant category code rules that now vary by state.
Read the full guide to High risk payment processing. Categories mainstream processors decline, and the accounts that approve them.
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A gun shop takes payments in more ways than most retailers: at the counter, for online and special orders, for transfers, and often for range time and classes. Every one of those needs to sit on an account that has been approved for firearms.
That rules out most of the easy options. PayPal and Shopify Payments prohibit firearms, Square's published terms prohibit them, and Stripe reviews them case by case.
This guide covers what a shop needs from a processor, the three we recommend, terminal costs, the firearms merchant category code, and what to prepare. My short answer: apply to Easy Pay Direct and Payline, add Durango if your shop is established, and compare written offers.
Affiliate disclosure: Processor Verdict may earn a commission if you use a sponsored link in this article.
What does a gun shop need from a payment processor?
A gun shop usually needs three things from one provider: approval for firearms and ammunition, card terminals at the counter, and a way to take payments online or over the phone. Many shops also sell range time, classes or memberships, which adds recurring billing.
- Category approval. A merchant account underwritten for firearms, with your products and channels listed in writing.
- Counter hardware. Terminals or a POS that work with that approved account.
- Online and phone payments. A gateway, virtual terminal or payment links for web orders, deposits and special orders.
- Recurring billing. For range memberships and class packages, if you sell them.
- Clear payout terms. When deposits reach your bank, and whether any reserve applies.
Buying a terminal first and asking about approval later is the expensive order to do this in. Get the account approved, then choose hardware that works with it.
Which processors should a gun shop apply to?
Apply to Easy Pay Direct and Payline, and add Durango if your shop is established. All three underwrite firearms businesses and review your shop before your first sale. Easy Pay Direct is the only one that publishes firearms pricing: an online card rate of 2.69% + $0.36 on its gun-friendly page.
| Shop type | Start with | Why |
|---|---|---|
| Licensed shop with a counter, in the US or Canada | Payline | Lists properly licensed firearms and tactical-products businesses; terminals, online payments and recurring billing in one account |
| Mostly online, or ammunition and reloading | Easy Pay Direct | Its gun-friendly page names online firearms sales, ammunition retailers and reloading supplies; failover across multiple merchant accounts |
| Gunsmith, range, suppressor or NFA dealer | Easy Pay Direct | Names gunsmiths, ranges, suppressor dealers, NFA items and Class 3 dealers |
| Established US shop with more than $10K to $15K a month and 6 months of history | Durango Merchant Services as an extra quote | Its FFL dealer page says it places firearms merchants that meet those minimums, with good credit and financials |
| Outside the US and Canada | Easy Pay Direct | Payline serves the US and Canada only |
Apply to both if you can. A decline from one bank does not mean the other will say no, and two offers let you compare reserves, fees and payout terms. Our firearms merchant account guide compares the two in more detail.
What card terminals can a gun shop use?
Use the terminals your approved provider supports. Payline publishes its hardware prices: a Basic Terminal at $10 a month, a mobile reader at $12, a Smart Terminal at $40 and a Mini POS at $45, each for 24 months. Full POS systems are quoted separately. Those are Payline's prices for the hardware, not your processing cost.
Easy Pay Direct works through its gateway, which it says connects to 500+ integrations, so ask which counter devices and POS systems it supports for your approved account.
Before you sign a hardware term, check whether the terminal can move with you if you change processors, and what happens to the payments if the account is ever paused.
What is MCC 5723, and does it apply to your shop?
MCC 5723 is the merchant category code for firearms and ammunition retailers. A merchant category code tells card networks and banks what kind of business ran a sale. Whether your sales carry it now depends on the state you sell in.
How the code started and stalled
ISO, the standards body, approved the code in September 2022. On March 9, 2023, Visa, Mastercard, American Express and Discover all paused it. In July 2024, Visa and Mastercard said they use it only where state law requires it.
States that require it
California (AB 1587), Colorado (SB24-066) and New York require it. Acquirers in those states had to assign it to firearms and ammunition retailers by May 1, 2025, and Colorado's law allows a civil penalty of up to $10,000.
States that ban it
According to NSSF's factsheet updated July 15, 2026, 20 states ban requiring or using the code: Alabama, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Montana, New Hampshire, North Dakota, Ohio, South Dakota, Tennessee, Texas, Utah, West Virginia and Wyoming.
Federal bill
H.R. 1181, the Protecting Privacy in Purchases Act, passed the House on July 14, 2026, 221 to 201. It would bar card networks from requiring a separate firearms code and preempt conflicting state laws. It has not passed the Senate, so it is not law.
What to do: ask your provider in writing which merchant category code your account will carry and how it handles your state's rule. The code describes your business; it does not change whether you are approved.
How much does card processing cost for a gun shop?
Only one of the three publishes firearms pricing. Easy Pay Direct's gun-friendly page lists an online card rate of 2.69% + $0.36 per transaction, a $99 setup fee waived if documents are submitted within 24 hours, and a monthly fee of typically $25 that varies by business type and volume. It says underwriting takes 1 to 4 business days on clean files and custom pricing is available at higher volume. Durango prices by quote. Payline publishes interchange-plus markups for standard accounts, from interchange + 0.35% + $0.10 under $50K a month, but firearms sits in its high-risk program, and Payline told us high-risk rates depend on the business, the vertical and the account terms.
Ask both providers to price the same month of sales, with counter and online volume split out, and get these in writing:
- Processing markup and every per-transaction fee
- Monthly, PCI and gateway fees, and any monthly minimum
- Chargeback fees
- Any reserve, and how it is released
- Your payout schedule (Payline told us most of its accounts are funded next day)
- Terminal costs and term
- Contract length and early termination fee
For how interchange-plus pricing works, see our Payline pricing explainer.
What should you prepare before you apply?
Underwriters want to see the business customers will see. Have these ready before you start an application:
- Your Federal Firearms License and any state or local licenses your activities require.
- A full product list: firearms, ammunition, parts, accessories, classes and memberships, plus anything you plan to add.
- Every sales channel: counter, website, phone orders, gun shows and transfers.
- How orders are fulfilled: pickup at your store, transfers to another dealer, and anything you ship.
- Processing statements for the last few months if you already take cards, and your chargeback and refund history.
- Store policies: refunds, cancellations, deposits on special orders and contact details, published where customers can find them.
Be accurate about past problems. A closed account you did not disclose is a fast way to lose the new one too. Our high-risk approval guide has more on preparing a clean file.
Which processor should your gun shop choose?
Start with Easy Pay Direct. It publishes firearms pricing, names gun stores, ammunition retailers, gunsmiths, ranges and NFA dealers, and can route payments across more than one merchant account.
If you have a counter in the US or Canada, apply to Payline as well. You get terminals, online payments and recurring billing for memberships on one account, from a provider that lists properly licensed firearms businesses.
If you are an established US shop with more than $10K to $15K a month in volume and 6 months of history, add Durango Merchant Services as a third quote.
Either way, get your products, channels and merchant category code confirmed in writing before you move your checkout. Not sure which fits? Take our free matching quiz.
Verified November 2026. Sources: Easy Pay Direct gun-friendly merchant account page, checked November 9, 2026; Durango FFL dealer page, checked November 9, 2026; Payline high-risk and in-person payments pages, checked November 7, 2026, and its written answers to our questions, November 8, 2026; ISO, card network and state law reporting on MCC 5723; NSSF factsheet updated July 15, 2026; H.R. 1181 House vote, July 14, 2026. This is not legal advice: confirm licensing and transfer rules with ATF and a qualified attorney.
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Frequently Asked Questions
Can a gun shop accept credit cards?
Yes, with a merchant account approved for firearms. Easy Pay Direct, Payline and Durango all underwrite firearms businesses. PayPal and Shopify Payments prohibit firearms, and Stripe reviews them case by case.
Does Square work for gun stores?
Square's published US terms prohibit using Square to sell firearms, firearm parts and ammunition. Check Square's current terms, and use a merchant account approved for firearms instead.
Do I need an FFL to get approved?
If your activities require a Federal Firearms License, expect the provider to ask for it during underwriting. Easy Pay Direct names FFL licensees on its gun-friendly page. A license does not guarantee approval.
What is the merchant category code for gun stores?
MCC 5723 is the code for firearms and ammunition retailers. California, Colorado and New York require acquirers to use it. NSSF counts 20 states that ban requiring or using it, and a federal bill to bar it passed the House in July 2026 but is not law.
What card terminal should a gun shop use?
Use a terminal your approved provider supports. Payline lists a Basic Terminal at $10 a month and a Smart Terminal at $40 a month, each for 24 months. Easy Pay Direct connects through its gateway, which it says supports 500+ integrations.
How fast do gun shops get paid?
It depends on your agreement. Easy Pay Direct's gun-friendly page lists an online card rate of 2.69% + $0.36 with a $99 setup fee waived if documents are in within 24 hours. On payouts, Payline told us most of its accounts get next-day funding and some high-risk accounts may be on two-day funding. Get your schedule in writing before you sign.