Navigating Legal Regulations in Firearm eCommerce: A 2025 Compliance Guide

Selling Firearms Online? Here’s How to Stay Compliant

Selling firearms online isn’t like selling T-shirts or phone cases. It’s one of the most heavily regulated industries, with federal, state, and even local laws dictating every aspect of the transaction.

If you’re in the business of selling firearms or ammunition online, you’re already aware that staying compliant isn’t optional—it’s essential. Ignoring legal requirements can result in frozen bank accounts, hefty fines, or even federal charges. And let’s be honest, no one wants a surprise visit from the ATF.

This guide breaks down the legal minefield of firearm eCommerce regulations, so you can keep your business compliant, protect your transactions, and grow successfully in 2025.

Why Selling Firearms Online is So Heavily Regulated

Before you even think about setting up an online firearm store, you need to understand why selling guns online is considered high-risk by financial institutions, law enforcement, and eCommerce platforms.

1. Federal Firearm Laws and ATF Oversight

At the federal level, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) sets the ground rules. Whether you’re selling in-person or online, here’s what you must comply with:

Federal Firearms License (FFL) – If you’re selling firearms (not just accessories), you need an FFL license to operate legally.
Background Checks – All firearm sales (except private party transfers in some states) require an FBI NICS background check before completion.
Age Restrictions –
- 18+ for rifles and shotguns
- 21+ for handguns

2. State and Local Laws: The Compliance Puzzle

Even if you follow federal laws, each state has its own firearm regulations—some stricter than others. If your business sells across multiple states, you need a state-by-state compliance strategy.

Here are the major state-based regulations to watch:

Firearm Bans – Some states (like California and New York) outright ban certain firearms, high-capacity magazines, or certain ammo types.
Magazine Capacity Limits – Restrictions vary (e.g., 10-round max in CA, 15-round max in NJ).
Mandatory Waiting Periods – Some states require buyers to wait days or even weeks before completing a purchase.
Ammo Sales Restrictions – Some states only allow ammo purchases through an FFL or require additional background checks for ammunition.

3. Online Sales and Shipping Compliance

Shipping firearms and ammunition online? It’s not as simple as clicking “ship now. Here’s what you need to know:

Firearms: Must be shipped to an FFL dealer. Direct-to-customer shipping is not legal.
Ammunition: Some states require FFL transfer for ammo sales.
Hazmat Fees: Ammo is classified as hazardous material, meaning higher shipping costs and carrier restrictions.
Carrier Restrictions: USPS does not ship firearms or ammo. Only UPS and FedEx allow firearm-related shipments under strict conditions.

4. Payment Processing Compliance

If you think you can process firearm transactions through PayPal, Stripe, or Square, think again. Most mainstream processors prohibit firearm and ammo sales outright. Using them can result in:

How to Stay Compliant While Growing Your Firearm eCommerce Business

Step 1: Get Your FFL License

If you’re selling firearms online, an FFL license is mandatory. Here’s how to get one:

Some businesses partner with FFL networks, allowing customers to select a local dealer at checkout for streamlined compliance.

Step 2: Implement Compliance Tools in Your Online Store

To ensure legal transactions, compliance tools should be integrated into your eCommerce platform.

Automated Age Verification – Blocks underage buyers.
State-Based Restrictions – Blocks transactions in restricted states.
FFL Dealer Locator – Customers must select a local FFL for firearm shipments.
Shipping Restrictions – Prevents shipments to restricted locations.

Step 3: Choose a Firearm-Friendly Payment Processor

Mainstream payment processors won’t support firearm sales. Using them risks frozen accounts and permanent bans.

Instead, use FFL Merchant, which offers:

Approval for high-risk firearm transactions within 24 hours
Chargeback prevention and fraud protection
BNPL (Buy Now, Pay Later) and ACH payment options
Pro Tip: Some firearm merchants separate processors—one for accessories and another for firearm transactions.

Step 4: Prevent Fraud and Chargebacks

Firearm eCommerce businesses must take extra steps to prevent fraud and chargebacks:

Use 3D Secure Authentication – Verifies buyer identity before processing transactions.
Enable Address Verification (AVS) – Flags mismatched billing and shipping addresses.
Keep Detailed Records – Log all sales, FFL transfers, and customer IDs.
Invest in Chargeback Protection – FFL Merchant offers chargeback prevention specifically for firearm transactions.

Final Thoughts: Staying Compliant and Profitable in 2025

Running a firearm eCommerce business means navigating complex legal and payment regulations. Compliance isn’t just about following the law—it’s about protecting your business and keeping transactions secure.

By following this guide and choosing FFL-friendly solutions, you can: