The firearms industry is one of the largest and most rapidly growing sectors in the United States, with increasing sales, new businesses, and expanding market demands. In fact, firearm ownership in the U.S. has surged over the years, and 2025 projections indicate continued growth. But despite the booming market, businesses in this sector face unique challenges, particularly when it comes to payment processing. Firearm and ammunition sales are considered “high-risk” by many payment processors, leaving businesses with limited options.

Fortunately, Cathedral Payments offers a tailored solution specifically designed for businesses in the firearm industry. With decades of experience serving high-risk sectors like cannabis, gambling, and firearms, Cathedral Payments provides streamlined, secure, and affordable payment processing services to ensure your transactions go smoothly. This blog explores the evolving landscape of firearm payment processing and why Cathedral Payments is your ideal partner in 2025 and beyond.

The Firearm Industry in 2025: Key Trends and Projections

The firearm industry in the U.S. has witnessed exponential growth in recent years. In 2020, firearm sales surged to an estimated $13.93 billion, reflecting a $600 million increase over the previous year. With over 16 million firearm owners in the U.S., the market is only expected to grow as more consumers purchase firearms for personal protection, sporting purposes, and collection.

However, the growth of the industry brings with it increased scrutiny and challenges, especially in areas like payment processing. Businesses that deal in firearms face stringent regulations, high chargeback rates, potential fraud risks, and difficulty finding reliable payment processors willing to handle such transactions. These hurdles make it crucial for firearm businesses to partner with a payment processor that understands the intricacies of this unique industry.

Challenges in Firearm Payment Processing 

High Chargeback Rates 

Chargebacks represent one of the most significant challenges in firearm payment processing. A chargeback occurs when a customer disputes a charge with their credit card company, which can result in the merchant losing both the funds and the goods. Firearm purchases are particularly prone to chargebacks due to various reasons, including buyer remorse, incorrect billing information, and mistaken purchases.

The high chargeback rates in the firearms sector make payment processors hesitant to work with businesses in this space. These companies want to minimize the financial risks associated with disputes and refunds, and because firearms are considered high-value items, chargebacks can lead to significant losses for payment processors.

Potential for Fraud

Fraudulent transactions are a constant concern for businesses in the firearm industry. Cases of stolen credit cards being used to purchase firearms online are not uncommon, and the consequences for businesses can be severe. Not only can these fraudulent transactions result in chargebacks, but businesses are also often held liable for the fraudulent charges, which can impact their reputation and bottom line.

For payment processors, the potential for fraud makes accepting payments for firearms a risky venture. This heightened risk often deters payment processors from offering services to businesses in the firearms industry, leaving these businesses with limited payment processing options.

High Payment Processing Costs

Businesses in the firearm industry are often forced to pay higher processing fees than other sectors. Credit card companies and payment processors view firearm transactions as high-risk, and this risk is reflected in the fees charged. In many cases, payment processors charge additional premiums to cover the potential for fraud, chargebacks, and other associated risks.

This makes payment processing prohibitively expensive for many firearm businesses, further emphasizing the need for a reliable, cost-effective solution like Cathedral Payments.

Regulatory Compliance Challenges

The firearm industry is heavily regulated by both federal and state governments. Federal laws, such as the Gun Control Act of 1968 and the National Firearms Act, set strict guidelines for the sale and transfer of firearms and ammunition. Each state also has its own set of regulations, which can vary widely. These regulations cover everything from background checks and firearm registration to licensing and reporting requirements.

Payment processors must comply with these laws, and staying up-to-date on changes can be a cumbersome task. This is one of the primary reasons why many processors refuse to work with businesses in the firearms industry—compliance can be complex, and failure to adhere to the regulations can result in hefty fines and penalties.

Why Most Payment Processors Avoid Firearm Purchases 

There are several reasons why traditional payment processors like Square and PayPal refuse to work with businesses in the firearms industry. Many processors simply aren’t willing to take on the high risks involved in these types of transactions. Below are the primary reasons why most payment processors avoid firearm purchases:

Chargebacks and Risk Mitigation 

As previously discussed, chargebacks are a significant risk for businesses in the firearms industry. With a higher-than-average chargeback rate, payment processors want to avoid dealing with the added complexities and financial risks associated with these disputes.

Fraudulent Transactions and Liabilities 

Payment processors are hesitant to assume liability for fraudulent transactions. Given that firearms can be easily resold on the black market, the potential for fraudulent purchases is high, which increases the risk for payment processors.

Government Regulation and Compliance

Payment processors must ensure compliance with an array of complex regulations when dealing with firearms. Many companies are unwilling to invest in the expertise required to navigate these laws, and as a result, they opt to avoid processing payments for firearm businesses altogether.

Political and Public Perception

The firearms industry is often a politically charged topic, and many payment processors shy away from working with businesses in this sector due to concerns about public perception and potential backlash. This adds another layer of difficulty for firearm businesses in finding suitable payment processing partners.

Cathedral Payments: The Trusted Firearm Payment Processor 

Cathedral Payments has worked tirelessly to provide a reliable and affordable payment processing solution specifically tailored to the needs of high-risk industries, including firearms and ammunition sales. Here’s why Cathedral Payments is the best choice for your firearm business:

Expertise in High-Risk Industries 

With years of experience working in high-risk industries, Cathedral Payments understands the unique challenges that businesses in the firearm sector face. We have developed a payment processing solution that is specifically designed to address the risks associated with firearm transactions, such as chargebacks, fraud, and compliance issues.

Lowest Fees in the Industry

Cathedral Payments offers some of the most competitive fees in the industry, ensuring that you get the best possible deal for your firearm payment processing needs. We work with a network of trusted partner banks to provide affordable and transparent pricing, so you can focus on growing your business without worrying about hidden fees.

Zero Fee Program: A Game-Changer for Firearm Sellers

Our Zero Fee Program eliminates all payment processing fees for firearm merchants. Instead of charging merchants directly, we pass the fees onto customers in the form of a small surcharge for the convenience of paying with a credit card. This means firearm businesses can retain the full amount of each transaction, reducing the financial burden of processing payments.

Fast and Easy Approval Process

We understand that businesses in the firearms industry need fast, hassle-free approval processes. Cathedral Payments offers a streamlined application process, so you can get started with your firearm payment processing without unnecessary delays or complicated paperwork.

No Hidden Fees 

At Cathedral Payments, we believe in transparency. Our clients receive detailed breakdowns of all fees, ensuring complete clarity on what they’re paying for. This allows businesses to factor their processing fees into their pricing structure and avoid unexpected costs.

Fraud Prevention and Chargeback Protection at Cathedral Payments

We understand that fraud and chargebacks are major concerns for businesses in the firearms industry. Cathedral Payments offers several security features designed to minimize these risks:

  • Address Verification Service (AVS): Ensures that the billing address matches the one on file with the customer’s bank, adding an extra layer of security.

  • Card Security Code (CSC): Also known as the CVV, this three-digit code on the back of credit cards ensures that the customer is in possession of the physical card.

  • Fraud Alerts: Our team monitors all transactions for suspicious activity, helping to flag potential fraud before it impacts your business.

Cathedral Payments’ Partner Banks: Trusted Institutions for Firearm Transactions 

Cathedral Payments partners with some of the most trusted banks in the industry, ensuring that your firearm transactions are processed securely and in compliance with all relevant regulations. Our partner banks have experience handling high-risk businesses and understand the unique challenges that come with processing payments for firearms and ammunition.

Looking Ahead: The Future of Firearm Payment Processing

As the firearms industry continues to grow, so will the need for reliable payment processing solutions. In 2025 and beyond, the landscape will continue to evolve with advancements in technology, changing regulations, and evolving consumer behavior. Cathedral Payments is committed to staying at the forefront of these changes, ensuring that our clients always have access to the most up-to-date and secure payment processing solutions.

Conclusion:

Cathedral Payments offers a comprehensive and secure solution for firearm payment processing. With low fees, fast approval, excellent customer service, and a range of fraud prevention features, Cathedral Payments is the ideal partner for businesses in the firearms industry.