Merchant Services Terms and Definitions
Chargeback
A chargeback is when a customer files a dispute with their credit card company about the transaction – typically because of fraud, unauthorized transactions, or failure to refund money. Obviously, these are not good for your business.
E-Commerce
Making sales in your gun shop is great, but to be competitive in this market, you’ll need to strongly consider online sales (e-commerce).
Financial Institution/Bank
Firearm retailers will, of course, need a bank. You will need to make sure that your bank allows business accounts for gun merchants.
Payment Gateway
Firearms merchants will also need a payment gateway to accept credit cards. The gateway is the company that handles the transaction through your e-commerce platform or in-store POS system. They are the bridge (or gateway) between your customer’s credit card and the payment processor (merchant account). Elite Merchant Solutions will help you set up the right option for you.
The gateway gathers the credit card details for the transaction, the payment processor runs the credit card, receives the money, and then deposits the money you earned into your financial institution.
Payment Processor
The payment processor is the company that actually processes the credit card transaction. This company is sometimes referred to as a merchant account provider, payment processor, or merchant service provider, and they offer payment solutions as a service.
PCI Compliance
To accept credit cards in the United States, you need to comply with federal laws and help to ensure that you are properly protecting your customers’ credit card information. PCI compliance refers to following all of these rules. Elite Merchant Solutions will help walk you through the process to ensure that you are PCI compliant.
If you don’t have this setup within the first few months of accepting credit cards, you can be charged a non-compliance fee.