How to Accept Credit Card Payments for Firearms Securely

Accepting credit card payments for firearms securely in the U.S. requires you to balance card-network rules, evolving state laws, federal firearms regulations, and rigorous payment-security standards. 

In 2025, the landscape shifted again: PCI DSS v4.0 is now fully in force, and several states mandate a firearm-specific merchant category code (MCC 5723) for certain dealers. 

This guide explains everything a federally licensed firearms dealer (FFL) or lawful firearms business needs to know to accept credit card payments for firearms safely—whether you sell in-store, online, or both. 

You’ll learn how to choose a gun-friendly processor, configure your POS/gateway, reduce fraud and chargebacks, follow ATF and shipping rules, and stay compliant with PCI DSS v4.0, OFAC, and card-brand dispute frameworks. 

Where relevant, we cite authoritative sources and 2025 updates so your firearm credit card payments program is current and defensible.

1) The 2025 landscape: card-network rules, MCC 5723, and why it matters

If you accept credit card payments for firearms today, you must understand how the new MCC 5723 (Guns & Ammunition) interacts with state laws and network implementations. ISO approved a firearms MCC in 2022, but rollout was delayed amid legal and political pushback. 

In 2024–2025, states diverged: California, Colorado, and New York moved to require a firearms-specific MCC, while many other states restricted or prohibited it—creating a patchwork. In practice, major networks and acquirers now support MCC 5723 where required, and some acquiring banks advise using it only in those states. 

The MCC doesn’t expose item-level data; it identifies the merchant’s category for analytics, risk, and reporting. For multi-state merchants, you may see different MCC treatments by location. 

If you’re an FFL in CA, CO, or NY, expect your acquirer to assign MCC 5723; elsewhere, you may continue under your general retail MCC unless your acquirer elects otherwise. 

Confirm with your processor and keep documentation for underwriters and auditors. Using the correct MCC can influence pricing, risk monitoring, and dispute handling—and misclassification can put your account at risk.

2) Legal foundations every FFL should know before taking cards

Before you accept credit card payments for firearms, ensure your federal and state legal footing is solid. For retail and eCommerce, a valid Federal Firearms License (FFL) aligned with your business model is foundational. 

Keep your license posted and available for inspection, maintain accurate Acquisition & Disposition (A&D) records, and follow ATF guidance for transfers and shipments. 

If you ship firearms, federal rules require using a common or contract carrier for handguns, notifying the carrier that a package contains a firearm, and complying with any carrier-specific restrictions. 

When theft or loss occurs in transit, sender FFLs have ATF reporting obligations—build controls to document shipments and confirmations. 

Also, age and background-check requirements apply to transfers, not card acceptance directly, but payment flows must never undermine lawful transfer steps: your checkout, invoicing, and fulfillment workflows should enforce shipment-to-FFL for interstate sales, ID verification at pickup, and cancellation/refund paths if a background check fails. 

This alignment between legal transfer and payment capture is crucial to reduce chargebacks and avoid regulatory exposure.

3) PCI DSS v4.0 (fully active): what firearm merchants must implement now

As of March 31, 2025, PCI DSS v4.0 “future-dated” requirements became mandatory. If you accept credit card payments for firearms, you must meet v4.0 controls for your scope (POS, eCommerce, and service providers). 

Highlights include stronger authentication for administrative access, improved password standards, targeted risk analyses for certain controls, anti-skimming protections for POS, enhanced change management, and dependency on compliant third-party service providers (e.g., gateways, token vaults, hosting). 

For web stores, v4.0 emphasizes script integrity and monitoring on payment pages, plus automated protections against web-based attacks. Confirm your SAQ type (e.g., SAQ A for fully hosted payment pages, SAQ A-EP if your site touches the payment page) and update policies, logging, and vulnerability scans accordingly. 

Ask vendors for current AOC/ROC letters, and ensure contracts reflect ongoing compliance obligations. Document your risk analysis and implement continuous monitoring; underwriters increasingly request these artifacts for firearms merchants.

4) Choosing a gun-friendly processor and gateway (without surprises)

Not all acquirers and gateways welcome firearms. When you accept credit card payments for firearms, seek a processor with explicit FFL support, experience with MCC 5723 (where applicable), and transparent underwriting. 

Ask blunt questions: Will they board you for store, online, and special-order transactions? Do they allow layaways or preorders? What reserve and rolling-reserve terms apply? 

Get documented approval for your product catalog (e.g., serialized firearms, frames/receivers, ammunition) and your fulfillment model (ship-to-FFL vs. local pickup). 

For eCommerce, prefer a gateway that supports 3-D Secure (EMV 3DS), network tokenization, AVS, CVV, velocity checks, device fingerprinting, and integration with dispute-management tools (e.g., Verifi Order Insight/CE 3.0 data feeds and Mastercard Mastercom Collaboration). 

Ensure the gateway makes it easy to configure capture timing (e.g., authorize at checkout, capture on shipment to FFL) so payment events align with ATF-compliant transfer stages. Confirm PCI features such as hosted payment fields or a fully hosted checkout to minimize scope under PCI DSS v4.0.

5) In-store acceptance: terminals, P2PE, and anti-skimming controls

For brick-and-mortar FFLs, choose EMV-capable terminals with Point-to-Point Encryption (P2PE) and tokenization to reduce scope and risk. Under PCI DSS v4.0, strengthen physical security around POS: camera coverage, tamper checks, sealed cable paths, and daily inspections to detect overlays or shims. 

Train staff to spot “customer distraction” fraud during insert/tap, to always verify signatures if required, and to compare IDs when needed (e.g., high-ticket transactions). 

Implement terminal-to-gateway tokens so customer profiles (and future special orders) never expose PANs. If you also sell non-regulated items (e.g., accessories), design a unified checkout flow but keep serialized items tightly controlled in inventory systems. 

For reconciliations, map batch IDs to your A&D book references so disputes can be tied to transfer records rapidly—this speed matters for representments under CE 3.0 and Mastercom timelines.

6) eCommerce for firearms: hosted checkout, ship-to-FFL, and order orchestration

It’s absolutely possible to accept credit card payments for firearms online, provided your store enforces ship-to-FFL and legal transfer steps. Use hosted payment pages or hosted payment fields to push card data entry to your PCI-validated provider and keep your site out of SAQ D scope. 

Pair this with address verification (AVS), CVV checks, device fingerprinting, and 3DS step-up on risky orders. Your checkout should capture the transferee’s information, FFL destination, and compliance acknowledgments. 

Build an order-status workflow: 

(1) Authorize funds at checkout; 

(2) verify FFL; 

(3) ship to FFL; 

(4) Capture funds upon shipment; 

(5) provide transfer paperwork to the receiving FFL; 

(6) handle cancellation/refund if the background check fails. 

This sequencing aligns payment liability with legal transfer, helping you avoid “merchandise not received” chargebacks and ensuring you only settle once the chain of custody is correct. Under PCI v4.0, implement script controls and tamper detection on payment pages to block skimming malware and keep SAQ evidence current.

7) Fraud prevention & chargebacks: use CE 3.0 and Mastercom to your advantage

Firearms merchants face targeted fraud, especially on high-value handguns and optics. Build a layered defense: 3DS, AVS/CVV, device intelligence, order linking, velocity rules, and manual review for risk signals. 

On the dispute side, Visa Compelling Evidence 3.0 lets acquirers resolve certain CNP fraud disputes upfront when you can supply consistent historical evidence (e.g., same device, IP, account, shipping/billing patterns) linking the cardholder to prior, undisputed purchases. 

This can stop friendly-fraud chargebacks before they’re filed. For Mastercard, understand the Mastercom dispute cycle and Collaboration flows; early-resolution paths can prevent downstream chargebacks and fees. 

Maintain clean documentation: order logs, shipment tracking to the FFL, pickup confirmations, and communications. Know the common reason codes (e.g., Visa 13.x consumer disputes; Mastercard “Goods/Services Not Provided”). 

Train staff to respond within windows and use your gateway/acquirer’s dispute portal to upload evidence promptly. These controls don’t just recover revenue—they also lower your fraud ratio and protect your MID.

8) Shipping, proof of delivery, and loss-in-transit: building airtight evidence

Because firearms must follow strict shipping and transfer rules, your chargeback defense hinges on carrier-compliant shipping and a verifiable chain of custody. Use carriers’ firearms policies and service guides; most require FFL participation for handgun shipments and have restrictions for individuals. 

Always notify the carrier that the package contains a firearm, use services with adult signature (where available), and keep tracking plus FFL receipt records. 

If a firearm is lost or stolen in transit, sender FFLs have ATF reporting obligations, so your SOP should include immediate carrier notification, ATF theft/loss reporting, and insurer claims. 

In disputes, submit the shipment confirmation to the destination FFL, carrier tracking, and any transfer documentation—these artifacts are decisive under CE 3.0 and Mastercom timelines. Regularly review carrier terms (they change), and align declared values and insurance with replacement costs for serialized items.

9) Sanctions (OFAC) & KYC considerations when selling accessories and exports

While ordinary domestic retail to U.S. persons rarely triggers sanctions red flags, merchants that accept credit card payments for firearms (and related accessories) should still implement basic OFAC screening practices, especially for cross-border sales, exports, or suspicious orders. 

The U.S. Treasury encourages a risk-based sanctions program; even if you’re not a bank, having vendor-supplied screening at checkout, strong customer verification for atypical transactions, and a process to escalate hits is smart governance. 

Document how you screen, how you clear false positives, and when you block or refund. Keep policies current and train staff; sanctions frameworks evolve. 

If you support B2B sales, your bank/acquirer may ask about beneficial-ownership diligence for entity customers—even if FinCEN’s formal CDD rule applies to covered financial institutions, acquirers increasingly lower expectations. 

Integrating basic sanctions controls complements your fraud stack and helps maintain stable banking relationships in a high-scrutiny category.

10) Pricing, reserves, and cash-flow planning for FFLs

Firearms are often treated as elevated-risk by acquirers, which can mean higher discount rates, per-item fees, chargeback fees, and occasionally rolling reserves. When you accept credit card payments for firearms, model your cash-flow with different reserve scenarios (e.g., 5–10% held for 90–180 days). 

Negotiate for reserve reviews after stable history (e.g., 3–6 months). Ask for transparent interchange-plus pricing rather than opaque tiered plans. Request network tokenization support to lift authorization and approval rates on returning customers, and ask your gateway for account updater to reduce declines. 

If you sell accessories and apparel alongside serialized items, track product-level margins; apply surcharging or cash-discount programs only where legal and processor-approved, and never on prohibited card types or in banned states. 

Lastly, budget for PCI compliance costs (scans, audits) and for a dispute-management toolset (e.g., Verifi, Ethoca, Mastercom Collaboration) that measurably cuts chargebacks.

11) Policy playbook: SOPs your firearms business should formalize

Create concise, trainable SOPs so every employee knows how your store accepts credit card payments for firearms securely. Include: 

(1) Checkout rules (AVS/CVV required, 3DS triggers, manual review thresholds); 

(2) Ship-to-FFL flow and capture timing; 

(3) In-store pickup checks (ID, matching buyer/transferee); 

(4) Refund/void ladder and when to refund to avoid escalations; 

(5) Chargeback response kit with document templates mapped to Visa 13.x and Mastercard codes; 

(6) PCI v4.0 daily/weekly checklists (POS inspections, patch windows, logging reviews); 

(7) Sanctions/OFAC escalation; 

(8) Carrier compliance steps and ATF theft/loss reporting; and 

(9) MCC governance (when and where MCC 5723 applies, and who confirms it with your acquirer). 

Rehearse edge cases—e.g., background check delays, buyer name mismatch, failed NICS checks leading to cancel/refund. Clear SOPs reduce staff errors, lower chargeback exposure, and satisfy underwriters during onboarding and periodic reviews.

12) Step-by-step setup checklist (retail + eCommerce)

Retail (FFL storefront)

1. Choose a firearms-friendly acquirer and confirm acceptance scope (serialized guns, ammo, optics).
   
2. Verify MCC assignment per state (use 5723 in CA/CO/NY if required) and get it in writing.
   
3. Deploy EMV terminals with P2PE and tokenization; enable AVS/CVV for keyed entries.
   
4. Implement PCI v4.0 controls: POS tamper checks, logging, patching, anti-skimming.
   
5. Train staff on ID checks at pickup, refund policy, and chargeback documentation.

eCommerce (ship-to-FFL)

1. Use hosted payment pages/fields; run AVS/CVV and 3DS step-up on risky orders.
   
2. Build checkout with FFL selector/validation and legal acknowledgments.
   
3. Authorize at order, capture at shipment to the receiving FFL.
   
4. Monitor for fraud with device fingerprinting, velocity rules, and negative lists.
   
5. Keep a dispute kit: order details, carrier tracking to FFL, and transfer confirmations.

13) Advanced fraud controls tuned for firearms

Fraudsters target highly liquid items (compact handguns, red-dot optics, night vision, suppressor accessories where legal). For safer firearm credit card payments, use: 

(a) consistency scoring across device, IP, BIN country, shipping, and login; 

(b) cart risk cues (unusually high ammo counts, split shipments); 

(c) behavioral signals (rapid re-attempts with new cards); and 

(d) bin ranges for prepaid/gift cards. Configure 3DS in “attempt server” mode so low-risk orders pass frictionlessly and high-risk get step-ups. 

Feed your Order Insight/CE 3.0 data with SKU descriptors (“FFL required”), delivery method (“Ship-to-FFL”), and past transaction hashes to qualify for liability relief. 

For Mastercard, enable Mastercom Collaboration alerts via your acquirer or a dispute-tech partner to resolve issues before chargeback filing. Routinely A/B test your rule thresholds so you don’t turn away legitimate enthusiasts—conversion matters alongside risk.

14) Data retention, privacy, and customer trust

Because firearms purchases are sensitive, handle customer data conservatively. Store only what you need, tokenize card data, and rely on your gateway’s PCI-compliant vault. 

Keep copies of IDs and transfer forms only as required by law and your ATF recordkeeping policies; protect them with access controls and encryption. Publish a clear privacy notice that explains how you process payments, how ship-to-FFL works, and how you handle refunds after failed background checks. 

For sanctions and high-risk order screening, keep logs of screening results and escalation decisions—OFAC encourages documented, risk-based compliance. 

Review your vendors’ DPAs and ensure incident-response contacts are current so you can notify acquirer, gateway, and customers if a security issue arises. These measures make accepting credit card payments for firearms operation both safer and more trusted.

15) Common misconceptions (and the facts)

“Card networks ban firearms.” False. Networks permit lawful firearms sales, though acquirers may impose conditions, and some states now require MCC 5723 for firearms retailers. Follow network and state rules, and work with experienced processors. 

“The firearms MCC reveals what the buyer purchased.” False. MCC identifies the merchant category, not line-item details. “PCI is the gateway’s job.” Partly. Your gateway’s compliance reduces scope, but PCI DSS v4.0 still mandates your own policies, training, monitoring, and vendor oversight. 

“Chargebacks are unavoidable in high-risk situations.” Not entirely. CE 3.0 (Visa) and Mastercom Collaboration (Mastercard), combined with strong evidence (ship-to-FFL, signatures, logs) can prevent or win many disputes. 

“Online gun sales ship straight to homes.” Not for firearms transfers; interstate shipments go to an FFL, with transfer and background check performed there. Building your payments flow around that legal reality protects you from disputes and regulatory exposure.

FAQs

Q1) Do I need to use MCC 5723?

Answer: If you operate in California, Colorado, or New York, your acquirer will generally assign MCC 5723 due to state mandates. In many other states, the code is restricted or discouraged by law; acquirers may keep your non-firearms retail MCC. Ask your processor for a written determination per location.

Q2) Are online firearm payments allowed?

Answer: Yes—provided you follow ATF rules: firearms typically must be shipped to a licensed FFL for the transfer. Architect checkout and fulfillment to align with ship-to-FFL, and capture payment on shipment. This greatly reduces chargeback risk (“goods not received”).

Q3) What changed with PCI DSS v4.0 in 2025?

Answer: The “future-dated” requirements became mandatory on March 31, 2025. Expect stronger authentication, script integrity and monitoring for web payment pages, targeted risk analyses, and more rigorous third-party oversight. Update your SAQ/AOC files and operational checklists.

Q4) How do I win more fraud disputes?

Answer: Use Visa CE 3.0 with historical purchase/device data to resolve some fraud claims pre-chargeback, and use Mastercom Collaboration for Mastercard to address disputes early. Keep complete order/shipping/FFL transfer records.

Q5) What shipping proof should I retain?

Answer: Keep carrier tracking to the receiving FFL, delivery scans/signatures, and transfer confirmations. Follow carrier firearm policies and ATF theft/loss reporting rules. These documents are critical for representations.

Q6) Do I need sanctions screening (OFAC)?

Answer: For domestic retail, risk is usually low, but it’s prudent to maintain a risk-based OFAC program and document your screening approach—especially for cross-border orders or atypical transactions.

Q7) What’s the best capture timing for compliance and chargebacks?

Answer: Authorize at checkout, capture on shipment to the FFL. That sequence aligns payment settlement with legal transfer and yields stronger evidence if a dispute arises.

Q8) Can I surcharge firearm purchases?

Answer: Only where permitted by law, network rules, and your acquirer. Many acquirers forbid surcharging on certain card brands or in some states. Get explicit approval and disclose surcharges clearly.

Q9) Which fraud tools should I enable first?

Answer: Start with AVS, CVV, 3DS (risk-based), device fingerprinting, velocity limits, and negative lists. Add alerts/ce data feeds (Verifi Order Insight, Mastercom Collaboration) once volume grows.

Q10) How do I keep my team compliant?

Answer: Adopt SOPs covering checkout, ship-to-FFL, refunds, PCI inspections, sanctions screening, and dispute response timelines. Review quarterly and retrain after any policy or vendor change.

Conclusion

In 2025, it’s entirely feasible—and smart—to accept credit card payments for firearms while staying compliant and profitable. Treat compliance as a foundation: use the right MCC by state, enforce ATF transfer rules in your checkout and fulfillment, and implement PCI DSS v4.0 controls end-to-end. 

Then harden revenue: run layered fraud tools, align capture with shipment to the FFL, and use Visa CE 3.0 plus Mastercom Collaboration to prevent and win disputes. 

Finally, operate with discipline: keep SOPs current, document everything (from A&D to carrier scans), and maintain a modest OFAC program for edge cases. The result is a safer customer experience, fewer chargebacks, and stronger relationships with processors and banks—so your firearms business can grow with confidence.