High Risk Merchant Bank
helped this retailer not only survive in a tough payment environment—but thrive.
Case Study: Online Firearms Retailer Secures Stable Processing with High Risk Merchant Bank
Client Overview
A reputable e-commerce company selling firearms, ammunition, and firearm accessories faced persistent difficulties in securing reliable payment processing. Despite operating in full compliance with federal and state laws, the merchant was repeatedly shut out by traditional processors due to the high-risk nature of the firearms industry.
Their business model included online orders, licensed transfers (FFL), and direct-to-consumer shipping for accessories and non-regulated items. Sales volume exceeded $500,000 per month, and the company had a loyal customer base—but their growth was stifled by payment instability.
The Challenge
Due to the industry’s perceived risk, the merchant encountered:
- Account Terminations from mainstream processors (e.g., Stripe, Square, PayPal), even without policy violations
- Difficulty onboarding with banks unwilling to support gun-related businesses
- Frozen funds and rolling reserves, further impacting inventory purchasing power
- Cart abandonment and lost sales due to limited payment options
- Tight compliance scrutiny, especially with 4473 documentation, FFL transfers, and state shipping restrictions
Despite the merchant’s full legal compliance, clean chargeback record, and secure checkout process, traditional processors would not take the risk.
The Turning Point
After being declined by several banks and processors, the merchant reached out to High Risk Merchant Bank (HRMB) —known for enabling payment success in regulated and politically sensitive industries such as firearms, CBD, kratom, peptides, and travel.
The Solution
High Risk Merchant Bank stepped in with a tailored solution that addressed both the business’s financial needs and industry-specific compliance risks.
Custom High-Risk Merchant Account
HRMB placed the company with a firearms-friendly processor that understood the legal nuances and state/federal compliance needs of the gun industry.
No Rolling Reserve
Given the merchant’s low chargebacks and strong documentation, HRMB was able to negotiate an account with no rolling reserve, giving the business back its liquidity.
eCommerce Integration
HRMB integrated the new merchant account directly into the retailer’s shopping cart (WooCommerce + FFL mapping tools), ensuring a smooth, compliant checkout experience.
Ongoing Support
HRMB provided regulatory guidance, chargeback monitoring, and updated underwriting, helping the company stay protected as it scaled.
The Results
The new partnership delivered transformational results:
- 30% Increase in Completed Orders Thanks to restored credit card acceptance and reduced cart friction.
- 100% Platform Uptime No more payment disruptions from processor shutdowns.
- Stronger Cash Flow With no rolling reserve and timely settlements, the business reinvested into new product lines and fulfillment infrastructure.
- Peace of Mind The owner no longer had to “process in fear,” and could focus fully on growth.
Conclusion
Selling firearms and ammunition online brings complex challenges—but that doesn’t mean your business should be punished for being legal and legitimate.