Multi-Level Marketing can be a very rewarding and exciting business to be involved with as well as quite profitable if you put your mind to it. But it also comes with a reputation. There are some great entrepreneurs who really believe in their product and believe that direct marketing is the absolute best way to get that product to the masses. But there have also been a few unscrupulous people who took advantage of their members, capitalizing on the structure of multi level marketing to amass millions for the founders while leaving their distributors holding the bag.
Multilevel marketing companies are high risk merchant accounts.
Over the years MLM businesses have garnered a bad reputation as a scheme, causing many of the traditional acquiring banks to shy away from working with these types of companies. Even many of the offshore banks that traditionally offer high risk merchant accounts have MLM on their prohibited list. This can make getting a dependable account tricky for a legitimate Multi Level Marketing company.
People tend to feel that it is not necessarily a legitimate business avenue. Financial institutions feel that it represents a high risk due to it’s reputation coupled with a higher instance of chargebacks.
It is hard to find a reputable merchant service provider and easy to be taken advantage of when you’re considered high risk and desperate at the same time. There is no shortage of salesmen who know nothing about how to book high risk accounts, nor the intricacies of the MLM industry, that just see you as a cash cow for monthly residuals.
MLM has its own unique merchant account requirements.
Some processors do not really understand the intricacies of the MLM industry and may book you in the wrong kind of account, resulting in you getting your account closed. Besides the fact that it is a huge inconvenience and disruption of your ongoing business, getting your account terminated can make it difficult for you to get approved for a new one since you are required to report any shutdowns on your future merchant applications.
There are a lot of variables when it comes to running a Multi Level Marketing company (MLM) that just don’t exist in other more traditional types of business. It is important to be concerned about things like transaction volume, or disputes and chargebacks.
A newer MLM company will experience bursts exponential growth. It requires a merchant that will offer an account with no caps but then not be scared away when this growth levels off or slows down. MLM by nature operates on an ebb and flow basis.
MLM businesses need a merchant service provider with experience.
MLM companies often operate both domestically and internationally, taking on business partners as well as members and distributors from various different countries. This means that they will need to also operate in various different currencies. A merchant account that is capable of accepting currencies from these different countries and then pay out the company in its own currency is a must.
Your merchant account must also be set up with ACH capabilities in order to manage recurring billing from your associates. Your members will generally have a monthly supply order that is set up on recurring billing. Whether you need one time or recurring ACH (Automated Clearing House) transactions you know your customer’s information is safe since all data is encrypted and transmitted with tokenization.
The company will very likely need a way to manage all of the various different product sales. In addition to the monthly membership sales there will also be some individual product sales to customers and finally there might even be sales at shows or national conventions.
MLM can achieve a dependable an affordable merchant account.
What you are looking for as the owner of a successful multilevel marketing company is a steady and reliable merchant account with a processor that understands the unique challenges that the MLM industry comes with.
At Bankcard Brokers we won’t look at your MLM organization as high risk but rather a high priority business that deserves the absolute best. We have been working with the industry for over a decade and can offer either a domestic U.S. based or international solution with the most suited acquiring bank for your business type.
We understand that you may have already experienced difficulties trying to find a decent merchant. We want to make the process as streamlined and efficient as possible to save you time and effort so you can focus on business. At Bankcard Brokers we will focus on getting you approved with the correct type of merchant account that will ensure you dependability and reliability while keeping your rates at a fair and tolerable level and providing you with the ongoing, reliable customer service you deserve. It’s not just our job, it’s our pleasure to find you the absolute best solution possible for your MLM business.