Penny Auction Websites are Not a Scam

Mar 18, 2015

Everyone knows about eBay, and its popularity. While a big name now, eBay struggled in its early days. Auction websites, in general, are heavily scrutinized by the public and the processing industries. While many of these websites are legitimate, many are also not, so there is understandable fear when it comes to the industry. However, those legitimate penny auction websites need to make sure that they are doing service to the overall industry by making the right choices. By “right choices”, I mean by making the right business choices, from staff to merchant account.

Staffing is simple: Vet and hire the right people. A merchant account is more difficult. With a merchant account, you need to look for more than just a way to process check and plastic card payments. You need a processor that is experienced with penny auction merchant accounts. Not all are, and even those who claim that they are really just want the added revenue that your business brings. Legitimate penny auction websites can garner a lot of web traffic and revenue, and it is important that you keep as much revenue as you can. If you choose the wrong penny auction merchant account processor, you are liable to pay high processing fees. High processing fees can harm every business, even an established business.

You also need to make sure that your penny auction merchant account processor is equipped to handle fraudulent charges and its chargeback fees. Fraudulent charges are a frequent occurrence with penny auction websites, but often a merchant account processor will either raise processing fees or drop the company. This can occur with “high risk” processors, as well as mainstream processors. You need to make sure that your high-risk processor is indeed a “high risk” processor. While this can be hard, there are ways that you can make sure. You need to make sure that whomever you choose is known for their work in the industry, and is endorsed by the industry and card companies. You need the services of EMB.

EMB is one of the few that is not only experienced with online penny auction websites, but also with chargebacks, which are bound to happen.

Let us help you get a penny auction merchant account today!

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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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