Understanding FFL Transfer Fees: A Guide

Because federal law doesn’t cap FFL transfer fees, individual dealers set their own rates—typically anywhere from $20 to over $100. In practice, most standard transfers fall in the $25–$50 range, although specialty services or high-end firearms can carry higher charges.

Understanding the intricacies of Federal Firearms License (FFL) transfer fees can be daunting, especially if you're new to purchasing firearms. This comprehensive guide will elucidate the concept of FFL transfer fees, their importance, and how they fit into the broader landscape of firearm transactions. Whether you're purchasing a gun online or transferring it through a dealer, knowing the nuances of FFL transfer fees is essential.

What is an FFL Transfer Fee?

An FFL transfer fee is a charge imposed by a Federal Firearms Licensee (FFL) dealer to facilitate the transfer of a firearm. This fee compensates the dealer for the administrative tasks associated with the transaction, including the necessary background check and paperwork.

Not every person receiving a firearm will need to do an FFL transfer. This is typically required when the gun is being shipped from another state or was purchased online. However, using FFL transfer services is a good idea even if it’s not strictly required, as it legitimizes the sale and ensures that the recipient is allowed to have a gun.

The Role of FFL Dealers

FFL dealers serve as intermediaries in the sale and transfer of firearms. They ensure that all federal regulations are adhered to, including conducting background checks via the National Instant Criminal Background Check System (NICS).

As buyers are usually unable to pick up the gun immediately because of a required waiting period, they also secure the weapon during that time. The FFL transfer fee compensates them for these services.

Some states do not allow private sales without FFL involvement, meaning that you will need FFL transfer services even if the exchange does not involve interstate commerce.

Why Are FFL Transfer Fees Necessary?

FFL transfer fees are vital in ensuring the safe transfer of firearms. They provide the FFL holder with the resources needed to manage compliance, maintain records, and offer a secure environment for firearm transfers.

Running a gun store has high overhead. In addition to accepting FFL transfers, owners must secure their property, conduct regular training, and submit to ATF inspections on a regular basis. The fee not only compensates them for this work but also ensures that only law-abiding citizens can purchase weapons.

How Much is an FFL Transfer Fee?

Every FFL holder can set their own fee schedule for FFL transfer services, so the pricing varies significantly. Typically, the range is $20 to $75, but it can be higher depending on your area.

• Home-Based Versus Gun Shop: Home-based FFL transfer services are often much cheaper, ranging from $15 to $25. Gun shops in a large urban area will charge more, sometimes as much as $100 at a minimum.
• Memberships: Some gun shops will charge less for members of their shooting range or provide discounts to NRA members.
• Firearm Type: Certain weapons are more strictly regulated, such as automatic rifles, resulting in higher fees. A non-NFA gun could have a $20-$75 fee, while NFA items could be $100 or more.
• Online vs. In-Store: Shipping prices will also determine how much you are charged. In-store transfers are typically cheaper.

Factors Influencing FFL Transfer Fees

• Location: Dealers in urban areas may charge higher fees.
• Type of Firearm: Fees may vary depending on whether the firearm is a handgun or a specialty firearm.
• Volume of Transfer: Bulk transfers might incur lower per-gun fees.

Additional Fees to Consider

You may also have to cover a background check fee in some states, like California. If you don’t pick up the firearm immediately, you may be charged a storage fee.

Firearms and a federal bill.

Credit: Adaptiv Payments

Understanding the Transfer Process

The FFL transfer process typically involves several steps, each designed to ensure compliance with federal regulations.

Step 1: Selecting an FFL Dealer

Choose an FFL dealer to facilitate your transfer. It's advisable to select one with a good reputation and a transparent fee structure. You can often find reviews and recommendations online or through local firearm enthusiast communities.

Step 2: Conducting the Transfer

Once you've selected the right choice, initiate the transfer by providing them with the necessary details of the firearm and the seller. They will then handle the documentation and background check.

Step 3: Completing the Transaction

Upon successful completion of the background check, you can finalize the transaction by providing the FFL transfer fee and any additional charges. You then receive the firearm.

The Legal Implications of FFL Transfers

Understanding the framework surrounding FFL transfers is crucial for both buyers and sellers. Federal regulations require all interstate firearm sales to be conducted through an FFL dealer, ensuring that all parties comply with background check requirements.

Compliance with Federal and State Laws

FFL holders are responsible for ensuring that all gun sales meet federal and state requirements. This includes maintaining accurate records of all transfers, which are subject to inspection by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).

Avoiding Legal Pitfalls

You should never bypass the FFL transfer process, even for gifts or loans. Non-compliance can result in severe penalties, including large fines and imprisonment. Ensure all documentation is completed accurately and that the transfer is conducted through a licensed FFL dealer. You can verify licenses using AFT’s FFL eZ Check system for added convenience.

Tips for Managing FFL Transfer Fees

To manage FFL transfer fees effectively, consider the following tips:

Research and Compare

Before selecting a dealer, research and compare transfer fees in your area. Some dealers may offer competitive rates or discounts for repeat customers.

When searching for affordable transfers, consider using firearms forums or Reddit communities. Fellow gun enthusiasts in your area can discuss the FFL transfer services they use and explain the benefits of each option.

Plan for Additional Costs

Be aware of additional expenses like shipping fees or charges for expedited processing. Planning for these expenses can help you budget more effectively.

Maintain Good Relationships

An FFL holder gets to charge their own rates, so becoming a regular can get you preferential treatment like lower fees or faster service.

Conclusion

Finding the right FFL transfer services can be challenging, as you must ensure all transfers comply with federal and state regulations. However, Adaptiv is highly familiar with high-risk industries and can offer personalized advice about managing these fees. Contact our team today to learn more about how we help gun shops remain compliant with all laws while maximizing revenue.

FAQs about FFL Transfer Fees

What does an FFL dealer do during a firearm transfer?

A dealer manages a range of tasks when transferring a firearm from one owner to the next. These include the following.

• The seller informs the dealer that the firearm is in transit and provides tracking information. The FFL confirms that it is being sent to the correct location and notifies the buyer when it arrives.
• A buyer must visit the facility in person to fill out paperwork and undergo a background check.
• The buyer fills out the ATF Form 4473 to confirm that they are not prohibited from owning a firearm.
• The dealer then runs a NICS background check using the buyer’s driver’s license.
• If the background check is approved, then the buyer assumes ownership of the weapon and pays any necessary fees, like a storage fee or state tax. The document will receive a tax stamp approval designation, and the serial number will be logged for later reference.

Are FFL transfer fees the same in every state?

No. Every FFL holder can set their own FFL fees. For example, they may charge more for an out-of-state seller. They may also charge more for NFA items like long guns, shotguns, and grenades.

Can I negotiate FFL transfer fees?

Yes, you can negotiate these. For example, you may find a seller who doesn’t charge extra for NFA firearms. Check their website for their current FFL information before beginning a new firearm purchase.

Do I have to pay a transfer fee for private gun sales?

Typically, you only need to pay a transfer fee if the firearm arrives from out of state or is bought online. If you’re taking possession of a family member’s firearm or buying from a private owner in the same state, there may be no FFL transfer policy. However, this varies by state, so be sure to check local laws.

What happens if I try to bypass an FFL transfer?

Failing to file the proper paperwork or go through the appropriate channels can lead to serious consequences, including federal and state criminal charges, imprisonment, and large fines. This is especially true for an NFA transfer, as these are more tightly regulated. You should always go through the proper FFL transfer services to avoid criminal repercussions.