Penny Auctions, or bidding fee auctions are one of the hardest online businesses to get a merchant account for. It’s up there with online pharmacies and online gaming. Even supposed “high risk” providers can’t touch these type of accounts. Most start up penny auctions don’t take this into account and end up failing because they can’t find a viable way to accept payments from customers.
At The High Risk Guys we know penny auctions, in fact we have more solutions available for penny auctions than any other provider on the market. We have both domestic and offshore banks available for penny auctions.
Domestic or Offshore?
A domestic merchant account means that a US bank will be underwriting your account and the funds from your transactions will be deposited in 24-48 hours. Whereas an offshore account means a bank outside of the US will be underwriting your account and in most cases the funds from your transactions are deposited weekly, one week in arrears.
With that being said, most merchants prefer a domestic merchant account.Penny auction sites that want a domestic merchant account must have at least 2-3 months of PayPal history.
If your site does not have any PayPal history, then offshore is your usually your only option. However at The High Risk Guys, we have a 3rd option, a domestic aggregator. This means a third party will be processing your transactions, so the rate is much higher than a normal account, but you are still funded every 24-48 hours.
Why Choose The High Risk Guys for your Penny Auction?
>> 3 different processing options
>> Start ups OK
>> Low rates and fees