In recent years, ecommerce has become a popular means of selling firearms. From brick-and-mortar dealers expanding their reach to new licensees setting up shop without a physical storefront, the convenience, accessibility and competition of the internet has allowed both gun enthusiasts and FFLs to easily buy and sell guns online.
However, there are certain regulations that must be followed when selling guns online. Federal law requires that all gun sales, including those done online, must be conducted through a licensed firearms dealer. This means that dealers must ship firearms to other licensed dealers where buyers must complete an ATF Form 4473 and (generally) complete a background check before taking possession of the gun.
But compliance doesn’t end there. To ensure your FFL minimizes risk and ATF violation, below are three considerations when selling guns online.
State Gun Laws
In addition to federal regulations, firearms are also subject state, county and city restrictions. When selling guns online – especially when engaging in interstate commerce – it’s critical your FFL know the applicable state laws of the purchaser, including any restrictions on purchase age, firearm type, firearm features, and magazine capacity.
If a customer buys a firearm that is illegal for them to purchase, own or possess in their state or local area, the transaction must not be completed. Under the Biden administration’s zero tolerance policy and heightened ATF enforcement, even selling just one firearm to a prohibited person is considered a willful violation subject to license revocation.
Of course, knowing every law of every state is impossible, but that’s where software applications, like Orchid eState™, can help. Simply select the location of the purchaser, the firearm type, and its features/characteristics, and the database of state-level restrictions will confirm if the sale is legal, providing direct links to regulations if not. Plus, applications can typically be connected to your POS or ERP system using an API-driven integration to automatically prevent illegal sales using ZIP code, firearm characteristic, or product UPC.
Valid License
If a firearm sale is legal, the next step is getting the gun to the customer. As we already mentioned, firearms must be shipped from one FFL to another, but it’s important that the license you have on file for the receiving FFL is valid. Because licenses expire every three (3) years, it’s best to double-check the FFL number of every licensee you ship to.
Like state gun laws, this can be done manually or electronically. Though many similar sites exist, ATF’s FFL eZ Check (fflezcheck.atf.gov) is the official database of FFL licenses. By inputting the first, second and sixth sections of an FFL number (corresponding to country region, IRS district, and unique ATF code) the program will provide the full FFL number and contact information of the valid licensee. Many tools, like Orchid eBound™, can connect to ATF’s system to visually inform users if FFLs stored on file are still valid.
You can also look at the fifth section of an FFL number, made up of two characters – one digit and one letter – representing when the license expires. The first character is the last digit of the year of expiration (e.g., 3 would refer to 2023), while the letter corresponds to the month of that year (assigned A through M, skipping I). If you notice a license is expired, you should reach out to the FFL for an updated copy.
A – January
B – February
C – March
D – April
E – May
F – June
G – July
H – August
J – September
K – October
L – November
M – December
Payment Processing
Up until now, we’ve only discussed compliance in the context of ATF regulations; however, there’s also compliance with service providers, like payment processors. The middleman between the credit card company and your business, your ecommerce payment processor controls your ability to accept credit card payments, complete transactions, and make money. But what if selling guns online is noncompliant with your user service agreement?
Though many ecommerce firearm dealers use popular merchant processors like PayPal, Square, Stripe and GoDaddy Payments, each has explicit prohibitions against selling firearms and weapons. Anti-gun providers may not stop you from selling guns immediately, but they can and likely will eventually, putting your business at risk – even temporarily.
Instead, seek out a firearms-friendly payment processor – like Orchid Pay™. Not only will your business be better protected from financial freeze and terminated accounts, but your customers can also be assured that their money is being handled by business that support the Second Amendment.
Take Your FFL Online
One of the best ways to grow your brand or reach a wider customer base is to sell guns online, and one of the best ways to do so is with Orchid eCommerce™.
From on-hand guns to live distributor catalogs, sell firearms, ammunition, accessories, training classes and more on your own ad-free, firearm-friendly, customizable ecommerce webstore. And take your omnichannel retail business to the next level when you integrate with Orchid POS™ for synced in-store and online inventory.
Contact us today to learn how Orchid can help take your FFL online and stay compliant.
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