Auction methods to prevent insolvent/unserious bidders

I was wondering how auction companies prevent either insolvent or non-serious bidders from bidding on lots in their auctions? It is relatively easy to become a bidder on all the leading auction sites, many do not ask for social security, bank or credit card information or do checks on your credit history. How do they manage to prevent idiots and knuckleheads from making outrageous bids on their auction lots? Thanks.

 

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Who would ever give up their ssn just to bid?

 

All they need is a name, adress, phone number, and their IT experts can probably get the rest.

 

I'm sure that the first time a bidder does not pay, their account rights are suspended. That person's nam e, email address, and possibly source IP address, and credit card on account are noted as a non-payer. They most likely will never get a second chance.

 

But how do prospective bidders get pre-screened on high-end coins? No auction company wants jokers queering their deals. I remember a friend's brother ordering several pizzas that he never intended to pick up, it's the same idea. Someone can set up log-in information at a public or stealth hotspot, give a bogus address and phone number and then bid like a fool--how does the auction company know to prevent this?

 

:thumb: Exactly.

 

Wrong in the case of eBay. They are actually quite lenient with non-paying bidders, allowing a buyer multiple offenses before suspending their account for a mere three days. I'm not familiar how the other auction venues (live or online) handle prospective bidders.

 

I know one large auction firm I have dealt with required that I give references of my past bidding history. They were content with my using Heritage and Teletrade, but they did require that I give enough information to verify that my accounts were in good standing. That was just to bid on the bargain lots. Had I intended on bidding in the other more expensive auction they would have required a cash deposit, or credit card on file to insure payment.
I know that there are plenty of trolls and deadbeats on the internet, but I doubt that too many people will go through all the trouble of giving references, lot viewing giving up their credit card information and possibly leaving a cash deposit just to run the bid up on a coin they don't intend on paying for. Ebay makes it easy for this type of bidding, other major coin auction firms aren't quite as vulnerable.

 

Double post. Sorry.

 

I don't know how they all do it.

I know icollector makes me provide my credit card data before I can bid on each auction. I registered once but must provide my credit card before bidding on each auction.

Heritage initially required a couple dealer references where I had purchased coins valued at more than $5.000. That may have been required back in the day to receive their catalogs. It may not have been a requirement to simply bid.

Are you thinking of doing an auction?

 

Only auction house I know of around me require new bidders to pay cash, credit card, or if check it has to be a pre deposit (time to clear the check) and if you don't buy anything they issue you a check right back to take back to your bank otherwise they deduct from there and you are only allowed to spend what you have/bring. Once they know ya they give till tuesday after the saturday auction to make good on the dough or purchase is canceled. Ebay is so goofy lately it sickens me I've seen people overpay by 25% for items. So someone like me that won't overpay it looks like I'm bidding auctions up when really I bid until it's where what I'll pay and then drop out. HA, Stacks etc. I haven't gotten there yet.

 

Every time I have registered at an auction house for the first time (Mail bidding) they have requested either references or a deposit equal to a quarter of my bids.

Maybe I could have gotten away with not providing them and still been able to bid, I don't know because I always provided the info or the deposit.

 

Last year I bought sets worth 250 pounds from a UK auction house through e-mail without giving any details about myself. I know 250 pounds is not much but they had some very expensive items, so I guess it all depends on the rules of each auction house.

 

A Cancelled Bidder!

I can only speak as a "cancelled" Heritage auctions past bidder.

As a past bidder in Heritage auctions who had successfully won many Gold "Double Eagles", always promptly paying, until they sold one of several coins I had won to another for my exact previously bid amount.

I wrote multiple letters, placed numerous calls requesting a reversal of the action, and the only response ever received was a threat to cancel my "privileges" if I didn't pay for the additional coins won in the auction. We had/have a mutual understanding of non-compliance/consequences.

All other sites on which I've "interacted" generally have more "Liberal" policies, often to the detriment of the participants.

The eBay past conspicuously posted policy of CAVEAT EMPTOR, and I believe CAVEAT VENDITOR are apropos for virtually all internet venues'. I believe an objective observer will find that other than Death and Taxes, there are no assured guarantees in life. Nothing ventured, nothing gained? :thumb:

 

Some auction houses require references and/or require credit card authorization beforehand.