Online auction sites are great platforms for buying and selling products, finding deals, and purchasing homes or businesses. These platforms are popular because buyers and sellers can exchange goods at preferred prices through a bidding process. Online auction sites and auction businesses are a $739.2 billion industry in the United States alone. As a thriving business in the auction industry, you need reliable payment processing solutions to help facilitate online payments. Will stripe do merchant processing for auction sites? The answer is No. Is it possible to receive a reliable, alternative to start accepting credit cards and debit cards? The answer is Yes!
Stripe’s Restricted Business List For Merchant Processing
Having a stripe account does not guarantee that you will utilize all their merchant account services. Just the same way having a bank account with your preferred bank does not guarantee you access to all the services. Each financial institution has specific criteria that must be met to qualify for specific services.
Stripe has a list of prohibited or restricted businesses, products, and industries. These so-called high-risk industries are restricted and cannot access merchant services from Stripe. The company restricts businesses that fall into the following categories:
- IP infringement
- Services and products that Stripe’s financial partners otherwise restrict
- Financial and professional services
- Illegal products and services
- Unfair, deceptive, and predatory practices
Prime providers like Stripe consider online auctions as deceptive, unfair, and predatory practices. This is why Stripe does not provide merchant services to this industry.
Auction Websites as High-Risk Businesses
Although online auctions are legit, many payment processors view them as opportunities for credit card fraud and scams. In addition, auction websites cover everything, including gaming and gambling-style applications. Therefore, companies like Stripe do not offer auction merchant processing solutions for the online auction industry.
Some payment providers also consider penny auction sites as online gambling. This is despite the fact that the businesses do not engage in fraudulent activities. Some items that can be sold at penny auctions include:
- Gift cards
- Kitchen appliances
- Home decorations
- Designer shoes and clothing
Will stripe do merchant processing for auction sites if the auction is for charitable causes or events? Because the auction business is restricted at Stripe, there are minimal chances of getting payment solutions from the company. Stripe’s list of restricted businesses includes sweepstakes, which includes most charity sweepstakes. Furthermore, the odds of Stripe shutting down your merchant account are high if they discover you’re into the auction business.
Prime payment providers like PayPal and Stripe can provide merchant services to anyone or any business that applies for an account. However, if anything considered high risk appears on your merchant account, they will close the account and freeze your funds. SecureGlobalPay understands the online auction industry and offers reliable payment gateways for high risk businesses and merchant account solutions for businesses in this space.
Merchant Accounts for Auction Sites
Merchants in the auction industry find it difficult to find payment solutions from popular service providers like Stripe. The solution is to go to a payment processor specializing in high-risk industries. At SecureGlobalPay, you will get a high risk merchant account for your auction website. An auction merchant account will allow your business to accept card payments, among other payment options.
What to Do if Stripe has Declined Your Application
Stripe, Square, PayPal, and similar mainstream aggregator-style payment providers tend to avoid high risk businesses. As an entrepreneur, you want to get a reliable partner that will guarantee you efficient and secure payment solutions. The perfect solution for auction sites is a high risk merchant account.
SecureGlobalPay is one of the best service providers and payment gateways for businesses in high-risk industries. Get an account with us and let your clients pay through their cards.
Mainstream payment providers like PayPal and Stripe prefer specific low-risk industries. They will not be willing to do business with you if you’re in the high-risk industry.
Because auction sites are considered high risk, your best option is to engage a payment processor like SecureGlobalPay. The company provides auction merchant accounts for online auctions sites. Please get in touch with us to get more information.