Everyone Wants a Deal | Penny Auction Merchant Account from eMerchantBroker

Aug 12, 2014

There can be huge profits with a Penny Auction Merchant account

Everyone wants a deal. Whether it comes in the manner of semi-annual sales, going-out-of-business sales, or online discount retailers, only the extremely wealthy do not look at price tags. But the general population has wants – and needs –consumer goods and they are not willing or able to pay full retail. This fact spurred the birth of the penny auction merchant account.

Even when popular electronics are on sale for 25% off, the asking price could be out of reach for the average consumer. Then they see television advertisements and online adverts that tell about people winning a big on a penny auction site and paying $25 for a 36” HD flat screen TV or $5 for an iPad. How did they do it?

These consumers registered on a penny auction site. Each site will have a specific cost per bid – let’s say 25¢. The shopper purchases 100 bids for $25. The item up for auction is a $100 gift card to Walmart and the opening bid is 25¢. On this site, the bid must go up by 25¢ for the subsequent bidders. This gift card gets 1,000 bids and the final price is $25. This is a great coup for the winner!

Let’s look at the rules a little closer. If there were 1000 bids, the winner would have paid $25 in bid fees plus will pay $25 for the $100 gift card. It still is not a bad deal for the winner. He or she has a $100 gift card and paid only 50% of the asking price. It has been a winner for the last bidder and a winner for the Penny auction merchant account. There were 1000 bidders and they each paid $25 in bids. One person in 1,000 won. This means the other 999 did not win but paid $25 each. The site made an additional $249.75 on a $100 Walmart gift card.

With these auctions, there are winners and losers. Sometimes the losers get angry and want their money back even though they are fully aware of the site rules. Most of the bidders understand the rules and use the site for entertainment. If they win a good item, they were entertained and come out winning a prize. It makes the entire process very exciting.

Can customers apply to unscrupulous penny auction merchant accounts? Absolutely. Like every business, there are scammers in every industry. The Better Business Bureau suggests that customers know exactly how the bidding works, set a limit for themselves, and be prepared to walk away before they go over that limit. Plus there are sites like Penny Auction Watch website that will give the consumer the low-down on the bad apples.

If you are an auctioneer and are looking for a penny auction merchant account, you know that your bank and the conservative credit card processors will not approve you because of the high risk of chargebacks. However, if you keep your chargebacks under 3%, eMerchantBroker is available to get you approved quickly with no application fee and reasonable rates.

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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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