Firearms Sellers Under Attack : Pay Processors Under Pressure?

Just what do the pay processors hope to achieve by denying their services to legitimate businesses that are within the law and providing items for sale that the general public want? The processors do have the right to restrict their serves when and where ever want, but what is their stated goal? Why the push now?

It does seem that there might be a political motive here on the part of the antigun lobby that is wholly supported by the progressive socialist liberal democrats in and out of congress. Little wonder then why the push is on to deny legitimate rights under the Constitution to gun dealers the same rights as any other industry.

It's just seems easier for the antigun lobbyist to go after businesses that obey the law, but have business that are politically in opposition to the 'collective' ideology, rather then those that operate out side the law.

Has there been pressure to do the bidding of those in power remains to be seen, but if past history of government intervention to advocate its ideology is any indicator of the present situation for the actions of the pay processors, one has to know the progressive socialist democrats have a hand in this.

Firearms Sellers Say They’re Being Choked Off From Payment Processors
Kelsey Harkness / @kelseyjharkness          

Go to a gun show, and you won’t find many merchants using PayPal.
You’ll also find few vendors using popular payment processors such as Square, Stripe and Spark Pay.

That’s because some payment processors explicitly prohibit the use of their systems for online — and some in-store — sales of firearms, ammunition and certain accessories.
Retailers in the gun industry say they’re being discriminated against.

“Being shut out from mainstream payment processors makes us feel like we are part of some type of shady business when, in fact, there is more regulation and documentation required for federally licensed firearms dealers than most businesses,” said Trevor Blandford of Terminal Performance Associates in Caroline, Va.

Blandford, 21, has been working gun shows for his family’s business since he was 14 years old. Recently, his parents named him general manager of Terminal Performance, which is known for its custom-built pistols and rifles and originally finished wraps. He and his family sell their merchandise online and at local trade shows.

Terminal Performance, an online gun merchant based in Caroline, Va. , custom builds their own pistols, rifles, and sells originally-finished wraps. (Photo: Terminal Performance)

To process payments, most merchants use some sort of payment processor.
Payment processors are companies, often third-party outlets, which handle credit card transactions between merchants and banks.

The concern some firearms sellers expressed to The Daily Signal is that restricting their access to some of the largest payment processors in the country — who offer the lowest transaction fees in the business — puts them at an unfair disadvantage to other industries.
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Add that to the long list of regulations firearms sellers already face, and some say it’s not even worth attempting to start a business. “In most of the states, especially California and New York, you’re a lunatic if you start a gun business,” Cody Wilson, co-founder of Defense Distributed told The Daily Signal.

“In most of the states, especially California and New York, you’re a lunatic if you start a gun business,” says Cody Wilson.

Wilson had his bank account closed by Chase. He was blocked from his PayPal account twice and shut out from Stripe. Stripe is a San Francisco startup that provides an easy way for websites and mobile apps to take payments using a range of payment systems from credit cards to Apple Pay.
Wilson’s case is more murky than other gun merchants. Instead of directly selling firearms and accessories, he provides blueprints on the Internet to manufacture 3D-pistols at home. The government classifies his business as the equivalent to distributing weapons without a license.

Defense Distributed provides blueprints on the Internet to manufacture 3D-pistols. (Photo: Defense Distributed)

Still, Wilson claims, the roadblock against gun dealers in the industry is real and it hurts small businesses most.

Policy Play
Some payment processors publicly state their policy against gun sellers. Square, for example, which is famous for its tiny white credit card reader that plugs into iPhones and other cellular devices, explicitly prohibits sellers from accepting payments in connection with firearms.

Photo: CC by 2.0

It wasn’t always Square’s policy to box out firearms sellers. A handful of vendors at “The Nation’s Gun Show” in Dulles, Va., told The Daily Signal on Jan. 2 that they used to enjoy the many benefits of using Square and similar payment processors. But after Square updated its policies, merchants such as Blandford of Terminal Performance are left using what they consider second-rate payment processors.

On May 10, 2013, Terminal Performance received an email notification regarding Square’s updated seller agreement.In it, Blandford discovered that Square added firearms to its “prohibited” seller list.