On July 7, 2022, GunTab raised the convenience fee on credit card payments to 3.8%. (Previously the fee was 3.3%.) We still don't make any money from this fee. In fact, by raising this fee we're simply losing less money on credit card processing. The fee still doesn't cover our cost. So please cut us some slack, because the credit card processing industry doesn't leave us any choice.
Credit card processing is expensive and getting worse. It generally costs around 3%. It's even more expensive for guns and ammo, because the processing industry classifies these transactions as "high-risk." Plus, as anti-gun sentiment rises, many processors are refusing firearm business and the remainder are increasing prices because they can now charge a premium. All of this is in addition to Visa and Mastercard raising their rates in 2021, and planning to do so again within the next 12 months.
GunTab has not been exempt from these increasing rates. Our rates have been getting bumped incrementally since 2021. We have been eating the additional cost, but that can't continue forever. After the most recent increase in our rates, we decided we need to increase our convenience fee to reflect the changes.
Currently, GunTab is being charged a base fee of 3.87% on every credit card transaction, plus an additional fee on transactions that are classified as "non-qualified cards". By raising our convenience fee to 3.8%, it covers most of that base fee. But it still doesn't cover the additional fee on non-qualified cards. That comes directly out of our service fee of 2.9% – and it eats a majority of that service fee. A company that doesn't earn revenue cannot survive, so that's obviously not sustainable.
We don't enjoy increasing our convenience fee on credit cards. There is no benefit for you or us. That's why we are always working to reduce that fee, but we are swimming against a very strong tide. Credit card transactions in general, and firearm-related transactions in particular, are getting more expensive all the time. Credit cards are convenient, but that comes at a cost.
Thankfully, you have options. If you don't want to pay by credit card, you can pay by bank account. It's slow, but it's free. If you want to move fast, you have to pay the credit card industry's fees. The choice is yours, we're just doing our best to make that choice available.