Without a penny auction merchant account, you’ll find it almost impossible to operate any sort of penny auction business online. And many business owners find themselves struggling to get started or grow their businesses, due to the risky reputation of the industry. Fortunately, Shark Processing can help you get the best high risk penny auction account.
Penny auction sites are becoming increasingly popular, and it’s easy to see why. These kinds of auction sites give users a chance to get their hands on some top quality items for surprisingly low prices. The big difference between penny auctions and traditional online auctions is that each bidder has to pay a fee to place each one of their bids, even if they don’t actually win the item in the end when the bidding is all over.
Unfortunately, this is where the risk comes into play, and it’s why penny auction merchant accounts can be so difficult to get; due to the nature of penny auctions, many people associate the industry with gambling, as bidders can lose money or even spend more than the retail value on the items they purchase. Meanwhile, sellers can accrue huge sums for their items by attracting lots of bids.
This system opens the door to scammers and places penny auctions firmly in the “high risk payment processing” category of businesses. And even if you’re running a reputable penny auction site without any scams or tricks, you can suffer due to the simple associations of the industry itself. This can make it very difficult to get a penny auction merchant account in the first place.
A penny auction merchant account functions just like any other merchant account: this is a payment processing account that stores funds from your business transactions before they enter your main business account. The merchant account is basically a way for your company to accept payments from customers, allowing people to bid on items via your penny auction platform.
Penny auction merchant accounts and similar types of merchant accounts are essentially special types of business bank accounts designed for businesses that handle a lot of electronic payments. They’re essential for online businesses like penny auctions, letting you accept credit card payments and other types of electronic, digital payment easily and conveniently.
In an industry like penny auctions, it’s clearly vital to have a good penny auction merchant account in order to be able to operate. Without it, you could find yourself unable to accept payments digitally, rendering your entire platform unusable.
So we can clearly see that penny auction merchant accounts are vital for businesses in this line of work, but the issue is that that most of the main payment processors won’t offer merchant accounts for penny auctions, due to the fact that this is seen as a high risk credit card processing industry.
There are various challenges and difficulties you can face when trying to get a penny auction merchant account. Many penny auction business owners find it difficult to get approved for merchant accounts to begin with. You may face many rejections and be unable to open an account with usual payment providers, due to the high-risk credit card processing nature of penny auctions.
The main issue with penny auction merchant accounts is that the industry is seen as a very risky one, with a high chance of scams and chargebacks. Credit card companies and payment processors don’t want to have to deal with repeated chargebacks and other issues, so they prefer not to associate with companies that are deemed to be high risk.
As explained above, the reasoning behind this is that there are a lot of scam penny auction sites out there, tricking users into losing money or bidding excessively on single items, paying over retail price for certain goods. There are also scammers operating on certain penny auction sites, playing the system to get additional bids and cash for their items.
Because the penny auction industry has these kinds of negative associations, you can have a lot of issues, even if you’re running a legitimate business. Not only will you potentially find it hard to get a penny auction merchant account, but you also risk having any existing accounts frozen or restricted if payment processors find out about your penny auction business activities.
In the worst cases, penny auction business owners can find that their accounts become canceled or void without any kind of warning, through no real fault of their own. Obviously, this can be a very distressing and problematic issue to deal with. And this is why a high-risk penny auction merchant account from high-risk account specialists can be your best option for working in this industry.
As leaders in high-risk merchant accounts and high-risk payment processing, Shark Processing can help penny auction business owners get the accounts they need. We offer high-risk penny auction merchant accounts at the very best rates, partnering with trusted offshore and domestic banks across the globe.
Our team has years of experience helping high-risk business owners enjoy simple and safe payment processing, and we also provide world-class customer support and a 24/7 fraud department to deal with any potential scams or chargeback problems. We’re here to get you approved and paid on time, every time.
So, if you’re looking for a penny auction merchant account, get in touch with the team here at Shark Processing to find out what we can do for you.