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The dealer that the firearm gets shipped to, if you don't pass it gets hipped back to buds.you get your money back minus a restocking fee
John, being an honorably discharged Veteran you can legally own any firearm. Once you purchase a firearm online it gets shipped to the local FFL dealer you selected closest to the zip code you provide. When that FFL receives your firearm they will call you in to do the paperwork and background check (ATF form 4473). You have nothing to worry about with a clean record. Once approved you pay a small (usually $15 to $30 transfer fee) to your FFL and you walk out with your firearm. On the slim chance that you are not approved (and I don't think you will be) the firearm is sent back to Buds and you will receive a refund less the restock fee(usually 10% to 20%). Thank you for your service and I think you will have no problems whatsoever.
First John, don't worry about the background check. It is done by your FFL once the weapon arrives. But if you must worry, review the transfer form at https://www.atf.gov/file/61446/download. If you answer correctly on everything, good to go. Should you not pass, don't worry. It becomes the FFL dealer's problem. Yes Bud's will charge you a fee to restock but they will also promptly refund the remainder to you.
You did not say what state you live in some states have additional requirements. here in NC a pistol purchase permit or a concealed carry license is required to purchase handguns.
The FFL dealer make a phone call to the call in center and gives them the info you have provided on the ATF 4473 form. I cannot say for sure what happens if a person is denied , because I have never been denied . I hope this helps you ,and thank you for the question.