Tips for Processing Penny Auction Website Sales

Jun 13, 2014
firearmPenny auction websites are lucrative; however, there are challenges involved in operating one. One of the biggest challenges is finding a reliable penny auction merchant account provider. While it may seem it requires a lot of dedication and research to locate one, in reality, it may not be as hard as it seems.

Penny auctions are very popular, but a lot of people are not familiar with that they are, and why they are so hard to find a merchant account processor for. Penny auctions are an online niche that requires electronic payment processing. 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. These fraudulent customers are the reason why this industry gets a bad name. These scammers and their tricks have implications for your legitimate business as threat of penny auction sites being shut down scares off banks and other merchant service providers.

For this, you will need a high risk merchant account processor. One of the best is eMerchantBroker.com, or EMB. At EMB, we are the high risk merchant account market, including penny auction merchant accounts. These accounts have a higher than average fraud rating, so we take great care in making sure that your business stays fraud-proof. We also offer chargeback insurance, which is a must for any high risk merchant. Chargeback insurance alerts you to a pending chargeback, which is typically not done to a chargeback insurance-less merchant. It can also help you save up to 30% of your chargeback fees. We can find you the perfect, high volume merchant account for your penny auction website. If you can keep your chargeback rate below 3%, we can set you up with a merchant account in as little as 3 days.

While it is a great time to open a penny auction business, there are obstacles in the way. One of the biggest, and most important, is finding a great penny auction merchant account provider. The answer is simple: EMB. We will be there to help with your every need concerning your penny auction merchant account, and perhaps even some marketing tips along the way.

For more information on setting up your Penny Auction Merchant Account click below

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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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