Creating a Penny Auction Business and Merchant Account

Apr 26, 2014
penny

Looking to watch profit flow in automated Penny auction business are a fantastic way to create major profit—if you can successfully set your business up. Penny auction businesses need a detailed, and well-crafted model to succeed. Competition is intense and your business is dependent on building a customer base.

The Basics

The first thing you will need is a script for the operation of the penny auctions themselves. These scripts can be hard to find. There are plenty available but few that will work consistently and that are suited to your needs. When you have your script you will need web hosting and the website itself. Whether you put in the hours to construct your own site or outsource it, a smooth website is necessary for a penny auction site.

Advertisement

Advertisement is pivotal for penny auction sites. You will need to direct traffic to your site for the auctions to be successful. There are two fundamental tools for advertising. You will need to advertise using a major web advertiser such as Google. The second option is to thoroughly back link your website. The rest of your efforts should focus on SEO content, social networking, blogging, press releases, and other common internet marketing tactics.

Day-to-Day Management

Active monitoring of your server and daily back ups will be some of the basic security and maintenance you will need. Most penny auction sites will ship directly from Amazon to their auction winners rather then carry inventory. Whether your model calls for inventory of your items or direct shipping, getting your auctioned items shipped promptly will keep your customer base returning to your auction site.

The other management decision you will need to make is the format of your auctions. How frequently do auctions go live? When do timers start? How many bids are required before an auction is cancelled?

Once your business, website, and auctions are ready to roll you need to set up your payment processing.

Penny Auction Merchant Accounts

Penny auctions can be a difficult sector to find a bank willing to open a merchant account. Most banks consider penny auctions high-risk, due to financial and reputation concerns. Your best solution is to let eMerchantBroker’s experienced high-risk merchant account team find the best payment processor for your penny auction site. Our team has the experience to set you up with a high-risk merchant account tailored to your needs within days so your website can go live and your profit can begin to roll in.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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