Why Your Business Needs an MLM Merchant Account

Thursday, June 2nd, 2022

Multi-level marketing (MLM) companies are among many ventures that face issues with getting approval for a merchant account. Essentially, a merchant account is a business bank account that allows merchants to accept credit cards and other forms of electronic payment – obviously very important in our world today. Unfortunately, most banks and payment providers are weary to work with “high risk” business types like MLMs.

Why? MLMs have reputational damage that follows them wherever they go, thanks to a few dishonest operators in the industry. As a result, many merchants in this niche fail due to their inability to expand their payment processing services to reach and support a broader audience. Forced to operate with limited resources, they quickly fall victim to serious cash flow issues. 

The Biggest Obstacle for MLMs

MLMs have received a bad reputation over the last few years especially after multiple MLM companies were exposed as being pyramid schemes. Since the structure of MLM companies is typically very similar to that of pyramid schemes, payment processors shy away from partnering with them. They would rather miss out on an opportunity with an honest operator than risk supporting a deceitful one. 

For this reason, companies in this industry are labeled high-risk merchants – even the honest ones. This is where high-risk providers are important. In many cases, they are the key to an MLMs future growth and success. An MLM can be highly profitable when executed and supported properly.

What are MLM Merchant Accounts?

With an MLM payment processing solution, your business is able to accept credit cards globally. The biggest advantage is that you’re partnering with a processor that understands the unique needs and challenges of your business typefaces. Their products, solutions, and support are then tailored to meet those needs.

The secret is to make sure that the provider you choose has years of experience in providing specialized solutions for MLMs. This increases the likelihood that they have a strong approval process, industry-leading contracts and fees, and affordable products and solutions. They will also be better equipped to help you manage any chargebacks, reputational risks and unpredictable growth MLMs often encounter.

The bottom line: make sure you know exactly what your MLM needs to handle industry challenges and rapid growth. Do your research and partner with a processor that specializes in working with your business type.