MLM Merchant Accounts
Multi Level Marketing (MLM) is a business strategy that recruits other firms to join an existing network. This interaction usually takes place almost entirely online, which is why many MLM services come in the form of software. The MLM account often arises once a business has reached a certain level of success and is looking to branch out with their sales. This allows the company to sell directly to other companies, as well as instituting a more efficient referral system. Taking payment by credit card can be a crucial aspect for such a business venture as it allows the company to expand sales worldwide, instead of just staying within the borders of their own country. This also makes the expansion of the business more credible.
This type of merchant account is generally considered high-risk, since there have been countless instances of fraud in the industry. Because this fraud has in several cases reached the level of severe, an MLM merchant account is one of the hardest to obtain. In fact, several major providers have cut back on the promotion of their MLM business offerings almost completely. Many banks have also stopped promoting the MLM account altogether.
Another disadvantage of an MLM merchant account is that once a payment has been made to you, it can be difficult to even obtain the money. This is because of the strictures often placed on the MLM accounts, which are often an object of suspicion. There are also a number of chargebacks that can be held against you.
The fact that much of MLM business is done online helps to make safe payment an important priority. Though they may be hard to find at first, there are several options available, and it is important to be careful with business like MLM. The high-risk status of such an account usually means that you will have a while to wait before your application is approved. However, if you have honest intentions and no credit strikes to your name, your bid for an MLM merchant account should be approved.
You also need to be very careful when selecting who is to handle your payment services, for the results of using an untrustworthy company can be disastrous, particularly with MLM accounts. Generally, any company that is willing to grant you instant approval is probably not trustworthy. This is not always the case, but if you are trying to be safe with your MLM business, this is one of the warning signs.
Several companies offer MLM payment gateways online. These are generally third party providers. These providers give you the ability to accept credit cards including Visa and MasterCard, but are not generally endorsed by the credit card companies themselves. No matter who you use, one of the most important aspects of finding a provider is to establish a solid relationship, especially since you may be in business with them for a long time. In this way, both parties can benefit from the business association.