Multi-Level Marketing Merchant Account

The most trusted credit card processor for MLM companies. 

high risk merchant account payment gateway

Multi-level marketing, also known as MLM, differs greatly from the traditional retail model. Essentially, MLM merchants operate their companies without a storefront or eCommerce store. Instead of following the path of traditional retailers, MLM merchants often sell their products through independent websites.

Oftentimes, multi-level marketing companies are simply labeled as a pyramid scheme due to the nature of independent MLM merchants recruiting additional merchants to work under them as distributors. This association with pyramid schemes has meant that many MLM companies have routinely been labeled as high-risk by traditional banks and merchant account providers. 

While obtaining merchant accounts has historically been difficult for multi-level marketing companies to obtain, with Bankcard the once difficult process is made simple. Read on to discover more about the many benefits that come with the Bankcard platform and how you can get started with Bankcard today.

Bankcard was referred to me by my developer. From the jump, they were impressive. They were super responsive, they asked great questions and their solution was really robust. Also, working with Katherine and Hanna is a dream!
High risk merchant account
Emily Wallace
CEO

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Why Are Some Organizations Defined as High-Risk Merchant Accounts?

With all this talk about risk, you may be wondering what makes some organizations considered high-risk in comparison to others. While there is no industry-wide standard when it comes to defining high-risk organizations, the following are some common factors that often result in businesses becoming classified as high risk. 

 

  • Amount of Chargebacks: The amount of chargebacks you receive on your merchant account plays a large role when it comes to being classified as high-risk.
  • Your Personal Credit: When signing up for a merchant account, your personal credit also makes a big impact on determining if your account will be considered high-risk. The better your credit score, the easier it will be for you to obtain an MLM merchant account. 
  • The Length of Time You’ve Been in Business: The length of time you’ve been in business also plays a role in determining if your account will be considered high-risk. Generally, the longer you’ve been in business the less high-risk you will be considered and the more willing partners will be to work with you. This leaves brand new MLM merchants at risk of not finding a company willing to work with them. But with Bankcard, you don’t have to worry about a lengthy wait time to get started with your new business. 
  • The Location of Your Business: The location of your business is another element that plays a large role in determining if your account will be considered high-risk. Typically, home-based businesses or doing business out of the country will classify you as a high-risk merchant account. In today’s business world, more and more new businesses are a start-up, home-based eCommerce businesses, making it difficult for them to find a company to work with.  With Bankcard, we are willing to work with home-based eCommerce businesses and will help you set up your new MLM merchant account to start your new dream business.  

Oftentimes, multi-level marketing companies are simply labeled as a pyramid scheme due to the nature of independent MLM merchants recruiting additional merchants to work under them as distributors. This association with pyramid schemes has meant that many MLM companies have routinely been labeled as high-risk by traditional banks and merchant account providers. 

While obtaining merchant accounts has historically been difficult for multi-level marketing companies to obtain, with Bankcard the once difficult process is made simple. Read on to discover more about the many benefits that come with the Bankcard platform and how you can get started with Bankcard today.

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Top Tips for Keeping MLM Merchant Account Chargebacks Low

One of the biggest reasons multi-level marketing merchant accounts are considered high-risk is because of the large number of chargebacks often associated with these accounts. To keep your account in good standing, you should always try to minimize the amount of chargebacks your account receives as best as possible. 

The following are some tips you can follow to help minimize chargebacks on your MLM merchant account:

  • Maintain good customer service
  • Have a clear refund policy in place 
  • Communicate effectively with customers about concerns
  • Set up automatic electronic receipts to be sent to customers to provide clarification 
  • Work with Bankcard to get early warning chargeback prevention services 

There are Benefits of Having a High-Risk Merchant Account 

While there are some negatives associated with having a high-risk merchant account, there are some surprising benefits as well. 

The following are some of the top benefits associated with having a high-risk merchant:

 

  • Having more flexible payment acceptance options: High-risk merchants have fewer limitations compared to low-risk merchants. This means high-risk merchants have the flexibility to offer recurring payments, process higher sales volumes for launch events and special sales, and sell a wider variety of products or services overall. 


  • The ability to work internationally: Typically, low-risk merchants are extremely restricted when it comes to international transactions. In comparison, high-risk merchants have much lower restrictions, making international transactions much more accessible. 

Common MLM Business Industries 

Ultimately, there are a variety of MLM business industries that require a merchant account to begin accepting digital payments. 

Some of the most common MLM business industries include:

  • Apparel 
  • Books 
  • Toys 
  • Home decor 
  • Wine 
  • Jewelry 
  • Makeup products 
  • Beauty products
  • Fitness products  
  • Supplements 

Of course, while these are common MLM business industries, the MLM business model can be applied across many other industries, too.

Upgrade Your Security with Bankcard 

With each passing year, the world becomes more reliant on technology. In the same respect, the world is more data-driven than ever before. The amount of online sales only increases each year. As an online merchant, this is great news. However, as more customers turn to eCommerce options, new concerns also arise. One of the top concerns is how to keep customer data and information safe from data breaches. 

Luckily, when working with Bankcard, you gain an extra layer of data protection. This means that both you and your customers can rest assured that sensitive personal information is always protected when working with the Bankcard platform. 

Payment Processors Consider Direct Sellers like MLM Merchants To Be High-Risk Because of the Increased Level of Fraud and/or Chargebacks Often Associated with these Types of Accounts. 

While there are risks associated with MLM merchant accounts, at Bankcard, we believe getting approved for your MLM Merchant Account shouldn’t be challenging.

The dedicated service team at Bankcard is here to see that you get the attention you deserve when it comes to getting your MLM merchant account up and running for your business. 

No question, Multi-level marketing companies see their fair share of chargebacks—which isn’t only costly, it automatically puts you in the category of needing a high-risk merchant account.

Not sure if you are considered a direct seller? 

Direct selling refers to selling products or services to the consumer in a non-retail environment and includes:

  • Business Opportunities (BizOps): consulting, coaching, or training programs geared toward helping individuals understand how to make an income (usually from home).
  • Multi-level Marketing: also called pyramid selling, network marketing, and referral marketing, MLMs are known for selling products like health/beauty, fitness products, home products, or jewelry and clothing.

Our credit processors understand your business, which allows us to work with direct selling companies to provide services unique to your needs, including:

  • Chargeback protection
  • Virtual terminals
  • Easy payment gateway integration
  • ACH processing
  • Automatic renewal/subscription payments
  • Accept mobile payments

Questions to Consider Before Signing With an MLM Company 

While getting your first multi-level marketing account set up is a breeze with Bankcard, there are some questions you should look into before signing up as a new distributor with an MLM organization. Of course, there are legal MLM schemes you can get involved with as a distributor to make money. However, there are also illegal MLM operations that run as pyramid schemes. It is in your best interest to be on the lookout for any red flags an MLM operation may have before getting involved in the business.

Before signing as a distributor with an MLM company, be aware of the following red flags:

  • The MLM company pushes recruiting other distributors rather than selling products, indicating a clear pyramid scheme.
  • The MLM company does not provide you with clear details of their company’s processes or procedures. 
  • The MLM company starts to pressure you to make fast investments with them. 
  • The MLM company charges you high startup costs. 
  • The MLM company promises high income for selling their products in exchange for little time. 
  • The MLM company makes groundless or even fake claims about their products. 

Ultimately, if an MLM company displays any of these outlined red flags, it is best to avoid them altogether. But don’t be too discouraged. There are a ton of opportunities out there to make money online, just make sure you thoroughly research any MLM company before signing up to be a distributor with them.

The Top Benefits of MLM Merchant Accounts 

While we always advise you to know what you’re getting into before signing up as a distributor with an MLM company, we also know there are many trustworthy and lucrative MLM companies with whom you can sign up to become a distributor. Of course, once you find the right MLM organization to become a distributor with, you will need an MLM account for all your payment processing needs. 

The following are some of the top benefits obtaining an MLM merchant account through Bankcard can provide to your growing business: 

    • Fast Approvals: Bankcard provides fast approvals for MLM merchant accounts, allowing you to begin taking orders quickly, safely, and securely. 
  • Great Customer Service: Bankcard has a highly trained professional customer service team who are dedicated to helping you reach your goals, find solutions to any issues that arise, and answer any questions or concerns you might have about your MLM merchant account. 
  • Recurring Billing: Bankcard allows MLM merchants to accept payments on a recurring basis which is extremely convenient for customers and profitable for you.
  • Fraud Protection: Bankcard helps MLM merchants by providing fraud protection for both them and their customers.
  • Chargeback Protection: Bankcard provides MLM merchants with chargeback protection, helping to stop chargebacks before they even occur.  One of the best ways that you as an MLM merchant can reduce chargebacks is to provide great customer service and answer all questions or concerns your customer may have in a timely manner. 
  • Accept Mobile Payments: Bankcard allows MLM merchants to easily accept mobile payments, creating convenience for customers and more sales for you. This allows you to accept payments anywhere you happen to be.

The Top Benefits of Working With Bankcard

Finding the right MLM merchant account for your situation can be challenging. Luckily, Bankcard will be there to help you get the fastest approvals, lowest rates, and best terms for your MLM merchant account when you’re ready to get started. 

Check out the following ways Bankcard can help you as you set up your MLM merchant account:

  • Accepting MOTO, online and mobile payments with the highest level of security
  • Accepting eChecks, debit, credit, and gift cards
  • Preventing chargebacks through automatic response tools
  • Creating custom payment gateway fraud filters
  • Accepting one-time recurring payments
  • Fulfilling Payment Card Industry or PCI compliance

Ultimately, Bankcard has a lot to offer all MLM merchants. So, don’t delay! It’s time to get in touch with Bankcard today!

How Bankcard Can Help With Your MLM Merchant Account 

If you’re looking for a fast and trustworthy way to open a new multi-level marketing merchant account, then Bankcard is here to help. At Bankcard, you can look forward to faster access to funds, world-class support, and straightforward, upfront pricing without having to worry about any surprise service fees. With the Bankcards built-in PCI compliance, fraud prevention, and customer privacy guarantee, you can rest assured that your transactions are always safe and secure.

In the data-driven world we live in today, customers are more concerned now than ever before about their personal data and information is being handled. Of course, in most circumstances, this means that consumers want to know that their data is in safe hands before making any purchases with a new company. With Bankcard, both you and your customers can rest assured that every customer’s data and information is safe from any potential data breaches when buying your products or services. 

 

Are you ready to discover more about Bankcard and what the platform has to offer you? If so, contact our team today. We can’t wait to help you better reach your goals and become a part of your business journey!

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Multi-level marketing, also known as MLM, differs greatly from the traditional retail model. Essentially, MLM merchants operate their companies without a storefront or eCommerce store. Instead of following the path of traditional retailers, MLM merchants often sell their products through independent websites.

Oftentimes, multi-level marketing companies are simply labeled as a pyramid scheme due to the nature of independent MLM merchants recruiting additional merchants to work under them as distributors. This association with pyramid schemes has meant that many MLM companies have routinely been labeled as high-risk by traditional banks and merchant account providers. 

While obtaining merchant accounts has historically been difficult for multi-level marketing companies to obtain, with Bankcard the once difficult process is made simple. Read on to discover more about the many benefits that come with the Bankcard platform and how you can get started with Bankcard today.