Multilevel marketing and business operations are highly specialized businesses that require specialized merchant accounts specific to their needs. Multi-level marketing, or MLM, merchants work under a business model differs greatly from traditional retailers. MLM companies operate without e-commerce stores and rely solely on independent direct distributors to market and sell products through their own independent websites and online. These independent distributors are relied upon to recruit more distributors to work under them and are paid a small percentage of the sales their recruits make in addition to their own commissions. Many MLM companies are labelled a pyramid scheme due to this business structure and due to this they are labelled high-risk by traditional banks and merchant account providers. The industry itself also has an unfavourable history, with many instances of companies fraudulently signing up distributors to sell services that are of either low quality or that do not exist, that in turn simply to force the distributors to pay expensive start-up fees.
MLM success; however, isn’t automatic or necessarily easy. The mistake many new network marketers make is in not treating their new venture as the business it is. Just because MLM businesses come pre-made with a product or service, a plan, and support, doesn’t mean it will run by itself.
Understanding MLM Merchant Accounts
One of the main benefits of an MLM business is that just about anyone who wants to can start one, and you don’t need a fortune to get a new business started. This application takes the least amount of time when it comes to submission and approval of it. All you need to simply do is fill, apply, submit and wait until the process is complete. This process has a good approval only when all the genuine required documents are provided without any delay or in-completion. The approval will be done in just 48-72 hours.
Below are the documents you need to submit to obtain a merchant account.
- A valid, government-issued ID, such as driver’s license
- Passport copy
- Utility bill
- Business bank voided check
- Last 3 months of the personnel bank statements
- Last 3 months of the businessbank statements
- Last 3 months of the most recent processing statements, if applicable
Fraud leads to excessive MLM chargebacks:
The chargeback dispute process is not straight-forward one. No wonder we see merchants expressing their frustration and anger about the chargeback process time and time again. That’s why it’s important for companies to be proactive in avoiding disputes and chargebacks in the first place before even there is an issue.A short and simple answer for this is that a chargeback is a transaction reversal meant to serve as a form of consumer protection from fraudulent activity committed by both merchants and individuals. It is also required by a credit card provider for a retailer to make good on the loss on a fraudulent or disputed transaction.
The great feature of easiest integration, online onboarding, feature filled checkout and best in class performance, great customer service quickly go live with iPayTotal and experience the future of payments.Additionally, our customized credit card processing solutions are tailored to cater your specific needs. MLM businesses will be able to put a program into place that helps mitigate the risk of fraud and chargebacks while also staying in compliance with industry regulations.