MLM Merchant Accounts
Multi-Level Marketing (MLM) is a prospering industry in today’s market. Direct selling in the United States was estimated to represent about $40.5 billion of retail sales in 2022. While this is a well-known industry, many MLM merchants have difficulties when it comes to gaining merchant accounts for credit card processing services. This means many banks and payment processing platforms deny MLM businesses from having payment processing solutions that can allow for easier transactions, secure payment data transmissions, and more. However, MLM businesses may be able to access efficient and unique payment processing solutions to better their customer transactions and overall business!
Working with high-risk payment providers can be the answer. At USA Payments, we work with a number of merchants in various industries to find the custom payment solutions for their business, along with risk management, fraud and chargeback help, and more. Learn more now about what makes an MLM merchant high-risk, as well as what options are available for these vendors.
Why is Getting an MLM Merchant Account Difficult?
MLM businesses often involve sales people buying specific products in order to sell them to potential customers. Similarly, many people often also directly buy products to use from MLM companies. Multi-level marketing companies can sell a variety of products, but many typically fall under wellness, makeup, and lifestyle.
A lot of MLM companies have reputations of being pyramid schemes, which can affect a bank or payment processing platform’s view in regards to those companies that carry reputable products or have honest intentions with customers. Despite often toting high profits and revenue, MLM merchants are deemed high-risk, which affects the probability of banks and other payment processors providing them with merchant accounts for payment services.
What Makes an MLM Account High-Risk?
High-risk merchants will always have more difficulty with banks and other financial institutions, and MLM businesses are one of the most known high-risk industries. Why are MLM companies deemed high-risk? It can boil down to a number of factors, including reputation risks. MLM merchants are deemed high-risk due to:
Due to the nature of the MLM business model, these types of companies deal with an abnormally large amount of chargebacks and fraud. MLM chargebacks can come about for many reasons. For example, an enthusiastic seller who ordered a lot of product to sell but hasn’t moved it at all, may file a chargeback in order to get their money back. Dissatisfied customers may also file a chargeback if they felt the product didn’t live up to their expectations. Some MLM businesses are also seen as fraudulent because certain products may be marketed fraudulently, failing to live up the promises made to customers. While this is hardly the case for many businesses, chargebacks and fraud can be a rampant factor leading to MLM companies being deemed high-risk.
In order to provide merchant accounts, many banks and similar institutions must know what the merchant is selling and the very thorough details of the products. Because many MLM businesses are built around products where claims need to be further vetted and verified, this can be off putting for banks. The extensive underwriting evaluation that comes with product vetting and claim verifying will make banks hesitate from providing merchant accounts. This is another large factor that prevents MLM businesses from obtaining merchant accounts easily.
It’s no secret that many MLM companies are seen as pyramid schemes. Many people believe multi-level marketing companies use exploitation and false promises of wealth and success in order to capture the interest of both new sellers and customers for products. Not to mention, some products require further verification of the claims behind them. The reputation of multi-level marketing as a business model can further precede MLM businesses that have the best intentions and work to sell honest product. However, the reputation of certain industries, MLM included, can make the merchant account process come to a screeching halt with banks and other institutions.
If you are an MLM business owner, it may seem like you’ve run out of options. You may have already been rejected from certain banks for a merchant account. However, all businesses in all industries should have the chance to obtain the payment processing solutions they need to thrive. A solid effective payment processing account is crucial in order to operate as a business and meet customer needs. So what are your options?
How Can I Obtain an MLM Merchant Account?
So as an MLM business, what are your options for a merchant account? Having the right payment processing solutions can make or break any business. Especially in today’s modern age where technology can be crucial to complete transactions, and many customers are choosing to go cashless. If you are looking for a merchant account for your business, your best bet is to work with a high-risk payment processing company. These companies have the experience of working with merchants in a number of high-risk industries, including multi-level marketing.
At USA Payments, we specialize in certain MLM niches to provide the most unique payment processing solutions. This can help push your company further and reach a broader customer base. The team at USA Payments can help with:
- Multi-Level Marketing Merchant Accounts
- Subscription & Continuity Merchant Accounts
- Free Trial Offer Merchant Accounts
Whatever your MLM business looks like, you want to have the most secure payment processing options to satisfy customers and sellers alike! In order to protect our clients, we want to make sure to provide them with the right credit card processing solutions to thrive, not fall behind in today’s market! Whether you’re a start-up MLM business or have been around for a while, getting the proper custom payment solutions can only further help push your business into success! Take the first step today for an MLM merchant account.
What Credit Card Processing Solutions are Available For MLM Vendors?
Every industry is different, and where your business falls can determine what credit card processing solutions are right for you. For MLM merchants, there are certain payment processing solutions that can further help increase profit, widen the customer base, and make sure to keep fraud and chargebacks down. Some of the credit card processing solutions that USA Payments offers for MLM merchants include:
- Virtual terminal solutions with cloud-based terminals, QuickBooks integrations, automatic settlements, and more
- Mobile solutions compatible with Apple and Android devices and with secure PCI-encrypted card readers
- E-commerce solutions that work with top-of-the-line payment gateways, supports recurring payments, and also customizes your data fields
How your business runs is up to you, but let USA Payments help ensure every transaction runs smoothly. We believe all merchants should have the freedom when it comes to accessing affordable custom payment processing solutions. No matter the industry, we work with small and big businesses alike. We take the risk when it comes to high-risk merchants!
