Penny Auction Merchant Account
Penny Auction Merchant Account
Penny auction merchant accounts are available to both United States and internationally based merchants. Penny auction accounts are usually considered high risk because of the additional burden that is placed on the payment processors. Most merchant account providers are unable to provide penny auction merchant accounts. There is an increased risk for chargebacks since customers will purchase bids and then bid on products. If by the time they have bid on and purchased their products and they have spent more than they initially estimated, there is a high chance they will question the charge or charge it back altogether. Penny auctions are not a normal business model meaning many consumers are not fully aware how they work. A customer needs to use their credit card or debit card initially in order to begin using the system. Only after they have purchased bids does the customer finally realize how it works. This is very dangerous by bank standards. If this happens several times the merchant puts at risk their merchant account and will not be able to cover chargebacks if the merchant goes out of business.
Most penny auction merchant accounts are approved within 7 days. Merchants are able to utilize real time card approvals and declines for their customers with a penny auction merchant account. It is important that merchants put together all of their documents including their financials. Financials are a very important part of a penny auction merchant account application. The payment processor and bank must both make sure that the merchant is able to remain stable with normal chargebacks and refunds that occur with any penny auction business.
Offshore Merchants has been setting up penny auction merchant accounts since 2007. Offshore Merchants is able to assist your business with the application, approval and setup of your merchant account.
Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.