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How will Democratic Control Impact Gun Store Merchant Credit?

Written by Orchid

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January 11, 2021

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How will Democratic Control Impact Gun Store Merchant Credit?
How will Democratic Control Impact Gun Store Merchant Credit? Although some continue to debate the outcome, the Presidential election process has been completed and all that remains is the pending inauguration. With that and the results of the recent runoff election in Georgia, it appears that the Democratic Party led by President-elect Joe Biden will have control of the executive office, the Senate and the House of Republicans. The impact of which could have a meaningful impact on the firearms industry including the making and selling of guns and the financial credit vehicles which enables our operations. If you are in the business of selling firearms, likely with a Type 01 FFL, or perhaps a manufacturer of firearms selling direct to retail and operating under a Type 07 FFL, you will likely be impacted by the new administration.  Much has been researched, argued and documented by NSSF, our industry’s trade association about concerns over banking prejudice against the firearm industry.  Those banks not only lend capital to businesses for investment and operating purposes but they also establish credit underwriting policies which impact the use of credit card transactions. Having served over 2,000 firearm merchants our leadership is very familiar with the difficulties that firearm merchants have had obtaining payment processing accounts for the sale of guns in-store or online.  These payment processing accounts are responsible for the transacting of well over $1b in retail firearm sales from consumer credit cards and any unwanted political pressure on or from the banking sector could create risk of terminated merchant processing accounts or denial of new applications. Orchid Pay, for example, was created specifically to limit the risk of anti-firearm bias, much like that which could be brought from the new administration. Now is the time to speak with your payment processor to get a solid understanding as to which banks they are connected and their reliance on any banks that may be deemed ‘unfriendly’ to the firearms industry. Based on so much of what has been published during the Presidential election campaigns we expect these pressures and risks to grow and advise merchants to get ahead of any pending risk to protect their financial interests.

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