Background check charges

ford8nr

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Joined
Jun 23, 2011
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2,152
Location
Wisconsin
So why do dealers charge a background check fee?
Is there a cost to them?
I understand on transfers that's where they make money. But on inventory bought items.
Even transfer fees vary.
Just had the thought on an auction item I purchased.
Auction price + auction fee + background check.
 
The "transfer ffl's" do vary in price. Most retailers don't.
I guess it's like the 'shop supplies' car repair shops charge.
 
In some States the Fee is a required item that needs itemizing.

Transfers are a separate issue and individual FFLs are kind of all over the place in what they charge. And, largely, they can charge "what the market will bear" for the service. Which is a legitimate recompense, as the customer is asking them for a professional service, a use of their time and labor and skill.
 
If you're buying a gun we need to run a background check. The state of Florida charges us to run a background check, this fee is why FDLE changed the rules to have them run the b/r check rather than nics which is free.

As for the transfer charges, we need to log a gun into our inventory and then log it out for the receiving person. There's costs involved so there's charges involved.
 
So why do dealers charge a background check fee?
Is there a cost to them?
FBI NICS is a free service paid for by our tax dollars. FBI NICS does not charge dealers to conduct a check.

In those states where a state agency is the POC or "Point Of Contact", there may be a fee charged by the state agency that conducts that check. Tennessee for example, charges dealers $10 for each background check whether successful or not. Often dealers in these states collect a background check fee before contacting the state agency.

Here in Texas, dealers contact FBI NICS directly. The overwhelming majority of dealers charge just a transfer fee and not a separate BG check fee.
If a dealer is selling from his own inventory any cost of doing business should be included in the retail price. IMO, selling a gun from my inventory and also adding a transfer fee and a background check fee is about the silliest thing I could do. Yet there is an FFL who frequents DFW area gun shows that adds a $25 transfer fee on top of his retail prices.

I charge $20 with a $10 discount for LTC holders. That doesn't mean I'm charging a $10 fee for a BG check. I give a discount because I want to encourage every Texan to get their LTC.
 
FBI NICS is a free service paid for by our tax dollars. FBI NICS does not charge dealers to conduct a check.

In those states where a state agency is the POC or "Point Of Contact", there may be a fee charged by the state agency that conducts that check. Tennessee for example, charges dealers $10 for each background check whether successful or not. Often dealers in these states collect a background check fee before contacting the state agency.

Here in Texas, dealers contact FBI NICS directly. The overwhelming majority of dealers charge just a transfer fee and not a separate BG check fee.
If a dealer is selling from his own inventory any cost of doing business should be included in the retail price. IMO, selling a gun from my inventory and also adding a transfer fee and a background check fee is about the silliest thing I could do. Yet there is an FFL who frequents DFW area gun shows that adds a $25 transfer fee on top of his retail prices.

I charge $20 with a $10 discount for LTC holders. That doesn't mean I'm charging a $10 fee for a BG check. I give a discount because I want to encourage every Texan to get their LTC.
When I bought my first gun in Cali (2015) the LGS ordered it for me because they didn't have one in stock. (4" 686 Plus. They only had the 6-shot version in stock.) They charged me $75 for I guess the background check etc. They did have more work than here in AZ in that they had to administer and grade my test. (Already in 2015 you had to pass a test to buy a firearm. There may actually have been an extra fee for the test, I don't remember now.) And there was a 30-day waiting period, although it's doubtful they had to pay upfront to S&W. AFAIK all the gun stores in L.A. charged $75 whether a transfer or a straight sale. Here in AZ I can get a transfer for $20. I did buy my King Cobra from a LGS, don't remember if there was an extra fee for the background check. Since then I got my carry permit, so background checks are no longer required.
 
If a dealer is selling from his own inventory any cost of doing business should be included in the retail price

That was my thought.
IF they incure additional fees associated with the check I'm OK with that. If it's just salesmen's time and a phone call ?? The cost of the phone, computer and sales staff is fixed whether I buy something or not.
 
So why do dealers charge a background check fee?

Depends upon whether the state mandate's it or not. Here in TN the FFL is charged the fee so they just pass it on transparently to the buyer. Your state may be different.
 
In my state the dealer is charged by the state. Also figure in the dealer or employee time to unpack and log the firearm into the log book, contact the buyer, fill out the dealer part of the 4473, input the back round check all for a item the dealer is not going to make anything on, remember this is the dealers livelihood Support your local gun shops..
 
Colorado state law prescribes a $10 background check fee. Given the amount of record keeping involved to meet the BATF requirements I think the store is getting compensated for much less than minimum wage for the time involved.
 
I have a FFL and conduct a lot of transfers from retailers who sold through a web site. Unless the buyer is a farmer / rancher, a veteran, in law enforcement or a fire fighter / EMT, I charge a $20 transfer fee regardless of the number of firms transferred at the time. I have jokingly said the transfer fee is dependent on my mood and the buyers attitude. The transfer fee is not traceable.
 
Minimum background check fee is $2 here in Virginia. But some dealers charge up to $30 for this "service." This is separate and apart from any transfer fees.
 
God bless Texas!
No additional charge for this tax-paid service,,, ,
Same here in Arkansas for the background checks. They don't even run one if you have your CC permit. Dealer transfers do incur a fee, of course.

I had no idea charging for the background checks was a thing, let alone so widespread. Learning something new everyday, I guess.
 
In Pa it's3.00 for a long gun. An additional 2.00 for a hand gun. FFL transfers are what the FFL want's to charge. I have seen 10.00 up to 50.00

I'm in PA and a couple of the gun stores I've dealt with only charge $5 above the price of the gun which covers those background check fees, if you buy the gun from them. But if you are buying a gun online and they are doing the transfer there is an additional fee of $30 or so which seems fair to me. If they aren't making anything on the sale you can't expect them to do the transfer for free.
 
FBI NICS is a free service paid for by our tax dollars. FBI NICS does not charge dealers to conduct a check.

In those states where a state agency is the POC or "Point Of Contact", there may be a fee charged by the state agency that conducts that check. Tennessee for example, charges dealers $10 for each background check whether successful or not. Often dealers in these states collect a background check fee before contacting the state agency.

^^^ This is how it is in Wisconsin. For long guns FFLs use NICS and there is generally no charge if the gun is purchased from the FFL. For handguns the FFLs must use the DOJ system and there is generally a $15 charge, again if the firearm is being bought from the FFL and you pay that fee up front, before the check is made. For transfers(as in on-line gun purchase), it depends on the dealer. My local one charges $25 for either.
 
I’ve heard of some dealers in NICS states charging background check/transfer fees too. Almost every dealer will charge such a fee if you didn’t buy the gun from them. Every dealer has his own business model. Some mark up guns high, some sell them as cheap as possible and make their profit on mags and accessories, some will charge fees for things like background checks. Some give you a free bbq if you buy enough guns, etc etc.

The reality is, filling out a 4473 and calling in a check can take a good 15 minutes, in addition to disrupting the routine of the employee. Then the gun has to be logged out of the bound book, which takes additional time. My company mostly sells to dealers so when we do a 4473 it’s kind of a PITA and I wish we charged. If I had a retail gun store I’d not charge, just because I feel like it’s important to incentivize shopping local vs buying the same gun online to save a few bucks.
 
In California there is a DROS fee is $31.19 which covers the costs of the background checks and transfer registry. There is also a $1.00 Firearms Safety Act Fee, and a $5.00 Safety and Enforcement Fee. In the event of a private party transfer (PPT), the firearms dealer may charge an additional fee of up to $10.00 per firearm.

At the last Gun show I attended the FFL dealer that was doing the transfers was charging $125.00 to do the transfer. In the past they usually charged the extra $10.00 for their cost of doing business. There where a lot of guns going over to them from the tables for transfers and an awful lot of the guns going back to the tables when the buyers refused to pay that much. Everyone was surprised by this amount. The promoter said he never asked them what they charged, they were proving a service. When asked about the ridiculous amount, they said they needed to make a living too. The guns on their tables were way overpriced so I guess that was how they made money that weekend.
 
Back when I was building up my gun collection I would order 3 to 5 receivers at a time & send them through one FFL that I was friends with. He liked me doing transfers through him because he liked seeing all the interesting guns & things I ordered. As long as had him do the transfer he would only charge me one $15 transfer fee. He said he only has to call it in one time so it wouldn't be right to charge $15 for each receiver.
But if I got his wife or anyone else in the shop I would be charged $15 for each receiver.
 
If a dealer is selling from his own inventory any cost of doing business should be included in the retail price. IMO, selling a gun from my inventory and also adding a transfer fee and a background check fee is about the silliest thing I could do. Yet there is an FFL who frequents DFW area gun shows that adds a $25 transfer fee on top of his retail prices.

I agree with your thoughts on the subject. The offering items at great prices and then pile on a bunch of additional fees is a more modern way of doing things though. I guess it’s to get people that don’t do the math. Same if your eating out, give them a good deal on the food and stick it to them on the drinks…
 
My last transfer fee was $50. I had an FFL near me who charged $30 but he did no business for about six months last year. $50 is pretty standard around here.

If I were doing transfers, paying for the software the state requires for POC checks and logging the transfer as required by federal law and providing safe storage, I would also charge a fee.

Just a for instance. What happens if a business owner (FFL) receives a firearm and the buyer doesn't pass the BC. The business owner, in this state, by law, can't transfer the firearm to that person. The firearm now becomes the property of the FFL, like it or not, unless the buyer can return it (his cost) for a refund. The FFL business can get pretty messy.
 
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So why do dealers charge a background check fee?
Is there a cost to them?
I understand on transfers that's where they make money. But on inventory bought items.
Even transfer fees vary.
Just had the thought on an auction item I purchased.
Auction price + auction fee + background check.

where i buy my guns, there are no background check fee's and no transfer fee's when buying new guns. buying a used gun, then yes, there is a transfer fee. but many times, that is waived.

however, i have been to all these places, and was told, that if someone does NOT pass the background check, and is denied a gun purchase, then THAT person does pay for a background check.

transfer fee's here i have found when i needed to do so, cost $35
 
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