Fireworks Merchant Account

Take your business anywhere you want to go and give your customers peace of mind with a secure payment solution designed to spark growth.

Whether you own a brick-and-mortar store, stand or tent, your fireworks business needs a credit card processing payment solution that’s portable, durable and designed for ease-of-use and security. With a fireworks merchant account from BankCard USA, you can customize the features and capabilities most suitable for your business model:

• Ability to accept credit, debit,  electronic check  and mobile payments like Apple Pay, Samsung Pay and Android Pay
• EMV chip compatibility
• Portable wireless terminals
• Mobile applications and small card readers that attach to your smartphone for the ultimate versatility and convenience accepting payments (check out our Clover Suite  here )
• Feature-rich countertop POS system for your retail store
• Virtual terminal  to take payments over the phone (MOTO)
• Payment gateway for your website with a customizable  Advanced Fraud Detection Suite
• B2B enhanced data processing  to lower your rates for commercial transactions
• Integration support to sync your payment system with other departments like accounting and inventory to create one seamless business flow—and less administrative work for you
• Merchant account freezing for up to six months, with a hassle-free reopening, for seasonal merchants
• Guidance in areas ranging from return policy verbiage to advertising—all aimed at chargeback prevention
• PCI compliance  support so that your business is up to date with the latest security requirements

If you already have a fireworks merchant account, you might know that finding one isn’t the easiest feat, and you might be paying higher rates than you should be. Here’s why, followed by what we do to offset risk and subsequently offer you the lowest rate possible.

High Risk Factors

There are a variety of high risk factors that financial institutions bear in mind before they form partnerships with certain business types. The U.S. Department of Justice launched Operation Choke Point in 2013, and the initiative was aimed at investigating and discouraging banking relationships for businesses considered to be at the highest risk for fraud and money laundering.

Among the many targeted business types were adult entertainment, payday loans, firearms and fireworks. As a result, banks started cutting ties with these industries, even those with longstanding, positive banking histories. Operation Choke Point received widespread criticism for grouping so many business types into one big red flag for banks, drawing on its unfair punishment of the legitimate businesses.

Although the initiative was put to an end in 2017, the risk it highlighted continues to make banks think twice before entering into any type of relationship with fireworks merchants. Luckily, there are still plenty of high risk merchant service providers and sponsor banks who partner with fireworks merchants, but rates vary from provider to provider and tend to run high.

Each provider has a different approach to offsetting risks associated with inconsistent cash flow and the possibility of getting shut down. If a fireworks business gets shut down or fined, goes bankrupt or experiences excessive chargebacks or fraud, its merchant service provider is liable to cover these damages if the business can’t. This leads to higher transactions than those imposed on other retail business. Fireworks merchants are prone to specific business obstacles, and the potential setbacks that can occur as a result of not handling those obstacles properly are taken into account by merchant service providers when they determine their degree of risk:

• Local and state regulations about if, when and where businesses are allowed to sell fireworks
• Proper licensure, permits, insurance and tax documents
• Proper equipment, such as a flame retardant gear and storage protocols, to minimize safety hazards
• Seasonal peaks and dips
• Customers’ tendency to dispute fireworks purchases, whether they were valid (“friendly fraud”) or not (the product was faulty, resulted in an injury, wasn’t as described, or otherwise gave the customer a reason to dispute the payment)
• Return policies or lack thereof
• Legal age requirements
• Consumer vs. commercial product requirements and restrictions, and variance in regulations for different products (e.g. sparklers, firecrackers, smoke bombs, roman candles, novelty fireworks and other product types, plus their size/scope, are all subject to specific regulations)

It’s important for fireworks merchants to address all of these challenges and be operating legally according to their state and local ordinances before looking for a merchant service provider to process credit cards for their business.

Benefits of Accepting Credit Cards

Fireworks businesses that accept credit cards gain access to more clientele, since not everyone carries cash. Customers are also likely to spend more with a credit card, as opposed to being limited by the amount of cash in their pockets. An electronic payment system gives you clear-cut transaction records and monthly sales reports , which you can use to tighten up your accounting and inventory tracking, and even integrate to work together as one efficient operation. Your manual tasks become much lighter, freeing up more of your valuable time to devote to other aspects of running your business.

Additionally, customers trust major card brands like Visa, MasterCard and Discover, and that trust tends to extend to your business when you accept credit cards. This added legitimacy is extremely relevant for fireworks retailers, as they are selling products that can be dangerous to use. Customers don’t want to run the risk of buying a faulty or hazardous product, so when your payment system exudes professionalism, it can translate to more confidence in your products.

After one seamless checkout and product use experience, customers are likely to build loyalty to your store and refer it to friends, rather than take a chance trying out a new business. Fireworks are bought for special occasions, so customer satisfaction is a huge part of your business’s success. In addition to providing quality products, expanding your online presence and promoting deals and loyalty programs are a few ways you can increase your exposure.

Low Rate, High Level of Service

At BankCard USA, we value forming long-lasting partnerships with fireworks merchants over cutting a quick profit. One of our main priorities is to offer guidance to get your business properly equipped for long-term viability and success. That includes setting a chargeback and fraud prevention system in place. When we have your business covered from every angle, it’s possible to offer lower rates to process your card transactions. With over 25 years of experience working with fireworks merchants, we guarantee that we’ll offer you the lowest rate of any verified provider.

During a free consultation, we’ll show you exactly how with a side-by-side comparison of your current processing statement and our proposal. If you aren’t processing yet, we’ll guide you through the application process to get your business up and running as quickly as possible. With a fireworks merchant account from BankCard USA, you don’t have to settle for high transaction rates, outdated equipment and hidden fees so commonly exploited by other merchant service providers. Take your business anywhere you want to go with a payment solution designed with your business in mind.