
Ask HN: Why Auction business model blacklisted? - IvarsIndriks
Why auction marketplace business model is blacklisted by many payment precessing providers? And I&#x27;m not talking about penny auctions.
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tlb
The reason why banks refuse some categories is almost always that they've seen
high rates of fraud, chargebacks, or money laundering in those categories.

The auction category sees high fraud rates, because it's easy for crooks to
set up fake merchants to launder money from stolen credit card numbers. They
also see high chargeback rates, because there will be people selling crap.
Also, they get in trouble with federal regulators if they facilitate drugs or
weapons purchases.

eBay is the way it is (high fees, strict rules for sellers) largely because of
these forces.

