MLM Friendly Merchant Accounts

QuadraPay: Reliable payment solutions for businesses of all sizes. With QuadraPay, you can trust that your payment processing needs are in good hands. Join our satisfied customers and elevate your business to the next level. Serving Since 2016!
mlm merchant account

Retail Credit Card Processing

Feature-rich and cost-effective Retail Credit Card Processing POS solutions

Grade A Processing Banks

Get Solutions powered by top acquiring banks in your region

Ecommerce Credit Card Processing

Ecommerce secure payment processing with ready-to-use CMS plugins

100+ Alternative Payment Options

Maximise sales by offering various payment modes, including ACH & APMs

One-stop Location For All Your Merchant Service Needs.

100 + Currencies Many More
43 + Official Partners Many More
40 + Countries Supported Many More
Serving Merchants Since Many More

Explore Low Cost Payment Solutions Now

Get A Zero Obligation Free Quote Today

Overview Of The MLM Industry​

The last three decades have seen a lot of changes in the market structure, which even includes introduction of some marketing techniques, models and strategies. MLM (Multi Level Marketing) also termed as ‘Referral Marketing’ or ‘Network Marketing’ is a business model used to sell products or services directly to the customer from the manufacturer/service provider. Usually there is complete structured network of people associated with a company or organization for marketing and selling of the products and services. This industry is specifically categorized as a high risk industry. Thus, for the online business there must be high risk merchant account for MLM companies.

This industry turned very popular because of the huge potential of profit earning that resides in this business model. Some of the famous companies with MLM model like Amway, herbalife, Vestige, Tupperware etc. have shown tremendous profit earning potential, not just for the company but also for all the individuals associated with it.

If we go by the statistics and reports of DSA (Direct Selling Association), 20.5 million people were involved in direct selling in 2016 with an increase of 1.5% from the previous year. This industry is growing huge, and attracting millions of eyes to its earning potential.

With the growth and development of technology and financial works around the globe, the involvement of online marketing has also increased more than others. In this industry as well, online multi level marketing is soaring its head and creating new areas of business for all. E-commerce platform can adeptly utilize the human resources involved in MLM companies and optimize the benefit of the company and associated individuals.

Merchant Account For MLM Companies

Before anyone enters the online market, they must get a merchant account and service of a payment gateway. Industries worldwide have been categorized into low risk, mid risk and high risk industries on the basis of their structure, functionality and outcomes. MLM companies are considered under the high risk industry segment. Thus, a merchant/ company working in MLM business model needs a high risk merchant account for the online business purposes.

The Question That Strikes The Mind Now Is Why MLM Is Considered As A High Risk Business?

These MLM business models are closely related to pyramid marketing which has been prohibited by the Federal laws. This is main issue that repels most of the financial giants to provide merchant accounts to this industry. Apart from the legal risks that are associated with this business model, the high instances of chargebacks and fraud cases have also made it hard for this industry to get a high risk merchant account. Last addition to this list is unexpected growth patterns that can’t be predicted correctly. Every merchant account is provided with a maximum limit, but in case of MLM model if the company gets popular quickly the transactions may spike abruptly and cross the maximum permitted limit. This cases issues for the acquiring bank as well.

Owing to the above mentioned factors, Multi Level Marketing companies are considered as high risk business. With the prospected profit in this field many startups have also been following the same strategy but these small companies often comes up with fake or degraded products, quality less services, maleficent practices and false promises to associated individuals, which ultimately aren’t capable to satisfy the clients and that leads to the shut down.

The conclusion of this discussion clearly states that it is difficult for an MLM merchant to get a high risk merchant account, especially from a domestic acquirer bank. Not just this, options to get services of payment processing company is also extremely difficult for this industry. But nothing is impossible. is always ready to help such merchants get a high risk merchant account for MLM company with optimum benefits and quality services.

How To Get A High Risk Merchant Account For An MLM Company?

There are two ways to get a high risk merchant account for an MLM company. Either apply with a domestic acquiring bank that has strict and almost refraining underwriting guidelines for your industry domain, or to apply with an offshore merchant account provider that may come up with suitable options at a higher rate in comparison to the domestic ones.

The underwriting guidelines of most of the domestic banks make sure to avoid any possible risk while acquiring a merchant account and MLM business being a high risk business has negligible chances to avail one. If the underwriter goes with an individualistic approach and looks into the applicant’s business model, expected overturn, financial background and decent credit score, then there are chances to get a merchant account for the high risk MLM company.

If the merchant doesn’t succeed with domestic banks, he should search for offshore service providers. These days, a large number of offshore processors are ready to provide services to this segment. A merchant should be careful and wise while deciding an appropriate offshore merchant account provider. Generally, the transaction rates of offshore processors are higher as compared to the domestic banks and they do have provisions of rolling reserve, hold period and other charges.

If we talk about the realistic terms, credit card processing and online payment is need of the hour to continue and expand an MLM company. These companies should negotiate well with the service providers to get a customized processing plan that best suits their business frame. The decisive factors to get a high risk merchant account are options of automatic renewals, buyer’s remorse, unpredicted business flow, uncertain transactions, regulations and chargeback alert services.

Business ethics and financial laws protect the customer rights globally and that primarily includes the right of chargeback. If a merchant in MLM business wants to have a stable and running high risk merchant account, then he should always keep the chargeback ratio below the typical limit of 2% in all cases. The MLM business is dreadfully affected by the high intensity of chargebacks initiated by the credit card issuers or service providing companies. The key to run the high risk merchant account successfully is strong customer relationship and regular feedbacks from the customers to ensure that they receive the best quality services and products.

The Final Verdict On MLM Friendly Merchant Account

If you are a merchant looking for a high risk merchant account for your MLM business, you should first try with domestic banks providing all genuine and desired documentation. In case, if you don’t succeed you should try to find the best suitable service provider for your company profile. Try to negotiate for rates and charges and once everything is settled with the merchant account, maintain strong relationship with your customers following true ethics, rules and regulations.

If you want to save yourselves from the hassle of searching, dealing and finalizing the best merchant account processor and payment gateway, is adroitly ready to help you with the most comprehensive solutions.


Latest From Our Blog

Apply Today!

Contact QuadraPay Today for a free savings analysis.