>Auction eCommerce Payment Plans
Capture Payment Plans for eAuction
Reserve Amounts for eAuction Purchases
Depending on the size of the item, there may be a reserve amount or a purchase that is made to show good faith that would be forfeit if the full amount isn't fulfilled. For example, if it's a $100,000 purchase there may be earnest money or some kind of reserve payment. That could be, for example, $2000 or $5000, and then that could be done via credit card.
And maybe that's even just pre-OFT, so it's not actually captured. But the end person who is authorizing that has the funds held on their card, and then they're required to actually wire the funds, either into an escrow account or directly. As long as they do that within 5 business days then the earnest money/escrow funds/reserve amount would then be refunded or unlocked again so that there would no longer be a hold on those funds.
It’s a great way to prevent somebody from frivolously bidding and then not fulfilling their bid whenever it comes time to close out the auction, so that in order to complete the auction, they have to validate their payment information. Otherwise, perhaps the next bitter in line would receive the option to put that earnest money out there.
So that's a really nice way to handle things for large purchase amounts so that the ACH can happen over the course of a couple of days and give the businesses time to coordinate and get the funds into the appropriate accounts.