Genco Marketplace, Ah yes, I’ll take those pallets. Pop it on ye ole credit card that offers flexible terms, and if not happy with my purchase, I’ll charge-it back and fix them! I hear this playing out like a 80’s Devo record. Who remembers Devo? Ah, never mind…
This announcement comes as a big surprise to me because the norm within the liquidation industry tends to be the not-so-safe-bank-initiated wire transfer. The wire has worked for years, why would Genco now offer credit card processing? Well, as Genco states, there are a few guidelines buyers must met before the plastic can be whipped out.
I’ll paraphrase Genco’s terms from this page:
- To use a credit card, the buyer must have made a purchase via wire transfer within the last 18 months. There is a two week waiting period from the first purchase via wire transfer before a buyer can re-order using a credit card.
- Genco will apply a 3% charge to credit card order (to make up for their cost to process order via their merchant provider)
- Genco will only accept credit cards for purchases made online. A buyer cannot use a credit card through a sales representative by phone.
- Credit card purchases are limited to $6,000.00 per qualified buyer, per day
Ok, what’s going on with these credit card terms? Well, here is my take: Genco is trying to qualify credit card buyers in an effort to lessen the risk of the dreaded charge-back occurrence. Genco wants to make sure buyers understand what salvage merchandise entails, prior to allowing a credit card purchase. Genco is assuming that if a customer has purchased and received a load historically, they will be more apt to understand what to expect when buying salvage goods, lessening the risk of buyer dissatisfaction and subsequent charge-backs.
It takes extreme dedication and lots of creativity reselling salvage goods. I hate to say it but the first salvage good purchase usually dictates whether or not a buyer has what it takes to order a second load.
I think the move to accept credit card is great, if you’re a Genco ongoing buyer it’s time to rejoice.