How Credit Card Processors Scam Gun Owners - & The Solution

Published on October 10, 2023
Duration: 18:52

This video explains how credit card processors often unfairly categorize firearms businesses as 'high risk,' leading to excessive fees and account cancellations. It highlights the systemic issues faced by FFLs and gun owners, contrasting the actual low risk of firearms transactions with the inflated rates charged. The video introduces FFL Payments as a dedicated solution run by industry insiders, offering transparent pricing and advocating for the firearms community.

Quick Summary

Credit card processors often scam gun owners by miscategorizing firearms businesses as 'high risk,' leading to excessive fees (5-6%+) and arbitrary account cancellations. This practice, driven by anti-gun sentiment rather than actual transaction risk, significantly impacts gun businesses. FFL Payments offers a dedicated solution with transparent pricing for the firearms industry.

Chapters

  1. 00:00Introduction: The Race to Damage the Gun Industry
  2. 00:29Banking & Credit Card Processing as Anti-Gun Tools
  3. 01:02Examples of Deplatforming: PayPal, Citibank, Bank of America
  4. 01:42Perverse Nature of Credit Card Processors vs. Banks
  5. 02:03How Processors Scam Gun Businesses: Absurd Rates & Cancellations
  6. 02:40The 'High Risk' Label Explained
  7. 03:07Actual Credit Card Risk Factors: Stolen Cards, Chargebacks, Fraud
  8. 03:25Card-Not-Present Transactions: The Key Factor
  9. 03:49Why FFLs are Labeled High Risk Despite Secure Transactions
  10. 04:37Reputational Risk & Politics in Underwriting
  11. 04:48Processors Hiding Terms of Service Violations
  12. 05:05Systematic Railroad by Processing Companies
  13. 05:21The 'Square Peg in a Round Hole' Problem
  14. 05:39Why Processors Get Away With It: Greed & Enjoyment
  15. 05:53The Solution: FFL Payments
  16. 06:08Critique of Previous 'High Risk' Solutions
  17. 06:49Personal Experience: FFL Payments Founders' Struggle
  18. 07:10Why Credit Card Companies Shut Down Gun Businesses
  19. 07:47FFL Payments: Built by FFLs, for FFLs
  20. 08:12Bank Restrictions & Contractual Hurdles
  21. 08:37The Magic Sauce: A Dedicated Firearms Industry Solution
  22. 09:14How to Get a Free Rate Analysis
  23. 09:32Understanding Processing Fees: Transparency is Key
  24. 09:54New Business Model & Beating Competitor Rates
  25. 10:27FFL Payments: The Obvious Solution
  26. 10:41Conclusion & Support

Frequently Asked Questions

Why are credit card processors considered a scam for gun owners?

Credit card processors often unfairly label firearms businesses as 'high risk,' leading to exorbitant fees (5-6% or more) and arbitrary account cancellations. This practice, driven by anti-gun sentiment rather than actual transaction risk, significantly impacts the profitability and stability of gun businesses.

What are the real reasons for 'high risk' in credit card processing?

True 'high risk' in credit card processing is typically associated with factors like a high percentage of card-not-present transactions (online/phone orders), potential for chargebacks, and the presence of fraudulent businesses. Firearms transactions, despite often being card-not-present, have a secure paper trail and are not inherently high risk.

How do banks and credit card companies deplatform firearms businesses?

Banks may deplatform firearms businesses due to reputational concerns or pressure from state governments. Credit card processors can arbitrarily cancel accounts, freeze funds for extended periods, and impose excessive fees, effectively shutting down businesses without warning.

What is FFL Payments and how does it help gun owners?

FFL Payments is a credit card processing company founded by individuals within the firearms industry specifically to serve FFLs and gun businesses. They offer transparent pricing, work with supportive banks, and advocate for fair treatment, aiming to combat the predatory practices of other processors.

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