Ask HN: Why Auction business model blacklisted?
Why auction marketplace business model is blacklisted by many payment precessing providers? And I'm not talking about penny auctions.
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.