Tier 1 Quality MLM Merchant Account
An MLM merchant account is a specialized credit card processing account for businesses operating within the multilevel marketing industry. MLM credit card processing solutions allow MLM companies to accept payments from distributors and customers. The solution also provides the ability for the MLM company to initiate commission payouts for its distributors.
According to Zion Market Research, the global MLM market size is projected to reach $239 billion by the end of 2039(Source), with the industry expected to grow at a compound annual growth rate (CAGR) of nearly 6.5%. The enormous potential of this industry attracts businesses to venture into the MLM sector; however, the most difficult part in today’s MLM landscape is finding the right merchant account.
Various traditional banks have already had bad experiences working with network marketing merchants. They consider MLM to be a high-risk industry from an acquiring perspective. Fortunately, not everyone views things in the same light. There are various high-risk processing companies that are completely comfortable working with multi-level marketing merchants.
QuadraPay has been assisting MLM merchants since the year 2016, and we have established a network of providers that offer MLM merchant services. With our solutions, merchants can save time and money. Contact us today to get more details about our MLM merchant account solutions.
Types Of MLM Merchant Accounts
With an online credit card processing solution, network marketing companies can easily accept payments from customers and distributors. Our advanced payment gateway for MLM companies comes with the ability to accept all major credit and debit cards. multi level marketing companies can also accept payments through various other alternative methods, including QR code payments as well as gift card payments.
We also offer retail credit card processing terminals for multi-level marketing companies. These terminals are quite effective when an MLM company requires to collect in-person payments. MLM companies can carry these terminals to host events, parties, product demonstrations, training sessions, and mobile kiosks where distributors can sell these products to customers and collect the payments through the terminal.
MLM companies may also set up pop-up shops or participate in various exhibitions or trade shows where they can promote their products and also allow other distributors to join the network marketing team. All these activities involve the exchange of payment, and this can be easily done by utilizing a credit card terminal.
MLM Credit Card Processing With Payout Solutions
In the MLM industry, money flows both ways. Distributors pay to join the company. As they grow the business, they receive commissions. This unique need in multilevel marketing requires robust payout solutions.
With prepaid card based payout solutions MLM companies can initiate commission transfer directly to distributors’ prepaid cards. Distributors can use these cards to make purchases, withdraw cash, or transfer funds to their bank accounts. This card-based payout solution offers real-time access to funds for distributors. Another attractive factor is the global availability of funds, allowing MLM companies to have distributors in almost every country.
KYC For MLM Merchant Account
The KYC process for an MLM merchant account ensures compliance with various regulations to mitigate the risks associated with card transactions. Let’s look at some of the most important KYC documents that you will need to submit when applying for a multi-level marketing merchant account. Some of these documents are specific to the MLM industry.
The MLM merchant account provider requires company information from the merchant and submission of the certificate of incorporation, articles of association, and any other documents related to the MLM company’s business registration.
The national ID or passport of all directors who have over 20% share in the company is needed during the KYC evaluation. Sharing the photo ID document confirms the identity of the individual who owns the company. This detail must also match with the business registration document. If the underwriters find the requirement of identification documents for directors with minority shares, they may also ask for them.
In the case of a multi-level marketing merchant account application, the payment processor would like to know the business model, compensation plan, product information, and target market. A merchant must provide all this information in a detailed business plan.
The settlement of funds can only happen in the business bank account of the company, and for that, the merchant must share a letter of good standing or a voided check. Along with the banking information, the payment processor would also like to see the last 4 months of banking statements as well as credit card processing statements.
Since the multi-level marketing business model includes sending payouts to distributors, it is important for the MLM merchant to fully comply with AML (Anti-Money Laundering) compliances. The company should have a detailed policy in place to detect and prevent illicit financial activities. A copy of this policy must be submitted to the underwriting team.
Apart from the above-mentioned documents, the MLM credit card processing company can ask for additional documents. The purpose of all these documents is to ensure that only genuine MLM companies get access to process credit and debit card payment solutions.
MLM Merchant Account Application Process
The application process with QuadraPay for an MLM credit card processing account is simple and ensures a smooth experience. It starts with the initial inquiry, where you reach out to our team and let us know about your requirements. This can be done by filling out a short form on our website or by emailing us. Then, our team will conduct a consultation with your team to understand your unique requirements, business model, and any other needs to provide the best solution for your company.
After that, we will request you to submit KYC documents. These will be shared with the underwriting team, who will review all the documents and assess the risks associated with onboarding your MLM company as a client. The underwriting team will evaluate your company’s financial stability, compliance, and potential for chargebacks.
Once your account is approved, you will receive a merchant account agreement that you can sign and return to the payment processor. Next, you will initiate the integration process, for which you will be provided with a detailed API document and a set of ready-to-use plugins. Once you have completed the integration, you can request a training session where your team will be informed about the best way to use the payment gateway for your MLM company.
Please remember that even after your account is activated, the merchant account provider will consistently monitor your account, as the MLM industry is high-risk, and consistent monitoring helps ensure a long life for the merchant account.
MLM Merchant Services FAQ
Are there specific banks that offer merchant accounts for multi-level marketing?
Yes, there are specific banks that offer financial services to merchants in the multi-level marketing industry. When it comes to credit card processing, certain banks in the US, UK, and Europe are comfortable onboarding these multi-level marketing companies. These sponsor banks understand that this industry can have above-average transaction volumes, which may also be seasonal. Although we have limitations in publishing the names of these banks, rest assured that we will connect you with the right one for your business needs.
What fees are associated with merchant accounts for multi-level marketing?
Multi-level marketing merchant accounts can include various types of fees. Some of the most common fees are the setup fee, monthly maintenance fee, transaction fee, and chargeback fee. Along with these regular fees, a multi-level merchant may be required to pay additional fees, which can include fraud detection and prevention charges, international payment processing fees, and advanced reporting charges. Reviewing all these costs helps merchants make the right selection of the credit card processing account provider.
Can merchant accounts for multi-level marketing accept international payments?
Almost every multi-level marketing merchant account comes with the capability of accepting international payments. For any MLM company, it is vital to accept payments in different currencies, as the members of the MLM company can be located in various continents. A good multi-level marketing payment gateway will have the ability to accept multiple currencies and various alternative as well as local payment methods to increase the conversion ratio of the merchant.
How can I avoid getting my merchant accounts for multi-level marketing terminated?
A multi-level marketing merchant account works under the terms and conditions of the merchant account agreement. It is important for MLM companies to ensure that they use the merchant account in accordance with the agreement they signed with the payment processor. This includes ensuring that the merchant maintains a significantly low chargeback ratio. It is also important for the merchant to ensure that the fraud ratio is also low. At the time of application, the merchant must provide genuine information because the documents may be reviewed even after account approval, and if any discrepancies are found, this may result in the termination of the account. Once the account is approved, it is important for the merchant to regularly monitor account activity, proactively identify irregularities, and resolve them. Maintaining regular communication with the payment service provider also helps in retaining the merchant account for a longer time.
How do I integrate multi-level marketing credit card processing with my website?
Integrating a merchant account for a network marketing business with your website requires a payment gateway. Our solutions are comprehensive and come with the merchant account as well as the payment gateway. Merchants get a detailed multi-level marketing merchant account API that provides step-by-step instructions for the integration process. For a much easier alternative to the gateway integration, merchants can use ready-made plugins which are available for well-known e-commerce platforms.
How do I resolve disputes in multi-level marketing credit card processing?
It is important for multi-level marketing merchants to proactively work with the payment processor to resolve any disputes. Whenever a dispute arises, the merchant processor will contact you and update you about it. It is important for you to gather all the relevant transaction details and forward these to the payment processor for timely resolution. Maintaining clear records of all transactions, communications with customers, and implementing reduction measures can help you reduce the risk of disputes. Additionally, it is beneficial to be proactive about your refund and return policy.
What are the fraud prevention measures in multi-level marketing credit card processing?
The multi-level marketing industry is considered a high-risk industry by credit card processing companies. Merchants must implement various fraud prevention measures to ensure compliance with industry and processing guidelines. These include implementing advanced security protocols such as encryption and tokenization to protect sensitive transaction information. Using various tools that help detect anomalous transactions in real-time can also be helpful. Utilizing value-added security features like the Address Verification System (AVS) can also identify potential fake transactions.
How can I lower the fees for my MLM merchant account?
If your current multi-level marketing merchant account provider is expensive, there are various ways you can try to reduce your transaction fees. The first step should be to approach your current provider and try to negotiate with them. If they are not ready to negotiate, ask them what steps you should take to help reduce the transaction fees. Sometimes, they may ask you to have a higher transaction volume each month.
In case nothing works with your current provider, you can explore other credit card processing services tailored to multi-level marketing companies like yours. Provide them with your current processing statement and ask for a free savings analysis based on your current monthly sales volume. This should help you reduce your current processing fees.
What features should I look for in an MLM merchant account?
When looking for a multi-level marketing payment gateway, you should consider some important features. The most important one is competitive transaction fees. Additionally, the payment processor should provide robust security that includes PCI compliance. Along with credit and debit card processing, the payment processor should allow you to accept ACH, cryptocurrencies, and alternative payment methods that can handle international transactions. The integration should be easy, and the provider should have a reputation in the industry as one of the best multi-level marketing merchant account providers.
What are common reasons for MLM merchant account denial?
The most common reasons for the denial of a multi-level marketing merchant account include a high chargeback rate and involvement in fraudulent activity. Additionally, credit history plays a critical role. If a merchant is listed on the MATCH (Member Alert to Control High-Risk Merchants) database, it becomes extremely difficult to get a merchant account. It is important to know that most payment processors prefer to work with businesses from low-risk industries, generally avoiding the MLM or network marketing industry. High-risk merchants should approach high-risk merchant account providers that offer a higher success ratio for account approval.
Can I use multiple merchant accounts for my MLM business?
Yes, using multiple merchant accounts for your multi-level marketing business is possible and can be very beneficial. Having multiple merchant accounts can provide much-needed redundancy; if one service goes down, the other merchant account will continue providing payment processing solutions to customers, reducing potential losses. After getting the approval of the first merchant account and having some substantial transaction volume, the merchant can approach another provider to get a second solution at a cheaper cost. Overall, this can also help reduce the transaction fees burden on merchants. However, it is important to note that integrating multiple merchant accounts on an MLM website may not be easy and will require technical expertise to accomplish.
How do I handle high transaction volumes in MLM merchant processing?
Multi-level marketing companies are known to attract high transaction volumes, so it is important to have a scalable solution with very high uptime. The payment processor must have the required hardware and software resources to ensure round-the-clock processing without transaction failures. Merchants can handle high transaction volumes by utilizing advanced transaction monitoring tools that provide detailed insights into the transaction activity on the merchant account. The merchant panel comes with these features. Merchants can also evaluate the transaction data to identify various factors like the most popular products, peak sales times, locations where the merchant product is extremely popular, and more.
Can I offer mobile payment options for my MLM business?
Many multi-level marketing companies organize trade shows and exhibitions where they sign up new members. These multi-level marketing companies require mobile credit card processing terminals for accepting mobile payments. We offer brand-new mobile payment terminals that allow MLM companies to accept all kinds of credit and debit card payments in multiple countries, including the US, Canada, the UK, and the European Union.
