If you have purchased or bid on certain penny auction websites, you may want to pay attention to this. Arrow Outlet, LLC.’s customers are now talking claims with the penny auction website, thanks to a consumer lawsuit that garnered a large settlement for affected consumers. Allegedly, the auto-bid script was designed to place bids at certain intervals, thereby prolonging the auction, increasing the number of bids purchased and used, and preventing actual users from winning the items.
Of course, not all penny auction websites operate shadily. However, incidents like this have given a bad name to legitimate businesses. One downside is that the vast majority of merchant account providers will not deal with penny auction merchant accounts. Penny auction websites, even before this lawsuit, had a higher risk of incurring fraudulent charges and activity and were pretty much blacklisted from mainstream banks and merchant account processors. This should not deter you from beginning a penny auction website. What it should do, however, is make you search out the absolute best option for an online penny auction merchant account provider.
eMerchantBroker is one of the top-rated online penny auction merchant account processors in the United States. Penny auctions are deemed high risk, almost on par with gambling, due to fraud websites and businesses seeking to take advantage of consumers. Fraud sites will sometimes drive up auction prices with an automated bid system. Because of this, you need top-notch security and software, which EMB provides. We at EMB know that your information and your customers’ information is sensitive, and we keep you up to date with the latest software and security to help not only prevent information theft, but also the above-mentioned fraud site hackings.
For more information, contact us today!