As we noted a couple of weeks ago, bidders will now be required to authenticate their identity with the use of a credit card. Testing has began on this new process and we will be closely monitoring the impact that is has on registrations and "No-Show" invoices.
Credit Card Requirement Testing
K-BID's software has allowed us to make many improvements in regards to fraud detection within the last year. However, it is becoming clear that requiring a credit card upon bidder registration is the most effective way for us to verify new registrants. By the end of January, K-BID will be testing a process that requires new bidders to register with a valid credit card that accurately reflects the registration information. Initially, the CC registration will ONLY be used to verify contact information and not as a means to charge bidders for "No-Show" penalties or invoice payments but our long term goal would be to introduce these functions available by the end of 2016. During this testing period, current bidders will NOT be required to re-register with a CC unless they have been disabled for non-payment.
This is a big change for K-BID and our affiliate network, we realize that fraudulent and "No-Show" bidders are a major issue that negatively affects us all. While CC's will not be the ultimate solution to "No-Show" bidders, we do believe that this will be a positive step in the right direction.
How does it work?
Upon registration, bidders will be notified that a valid CC must be on file in order for them to bid. At this point, they can still access all of the auctions and watch items on their dashboard, however they would not be able to bid until the CC has been authorized.
Upon clicking on the Click Here to Learn More button, bidders will be prompted to an information page regarding the use of CC in order to verify their identity. It is made clear (2 or 3 times) that the CC on file will never be used for auction purchases and that they are required to interact with affiliates directly for payment.
By Proceeding on this page the bidder will be taken to Paytrace to safely and securely input their CC information. Accounts that are closed or invalid will not be allowed to proceed and bid without contacting K-BID.
And that's it! The bidder can now bid on K-BID once their CC has been approved (NO CHARGES WILL BE MADE). We will be updating you on the progress of this new system as we get more data. Please reach out to email@example.com if you see or hear anything that we should be made aware of.