Multi-level marketing companies have grown exponentially through the years with quality products and successful distributors. With its continuing success comes the need to handle payments faster and more easily. Thanks to MLM merchant accounts, many businesses are able to transact with distributors and customers more conveniently. With this, you can enjoy friendly payment processing options for your business.
- Connect with an extensive network of US and international partners
- Accept all major card brands worldwide
- Add e-checks/ACH as an alternative payment method for your customers
- Provide local payment methods preferred by international buyers
- Get the payment processing capacity you need to manage and grow your business
With flexible payment options, it is no wonder that many MLM businesses consider merchant accounts necessary to grow their business. As you consider getting one for your own, here are five things you need to know to get started.
Understand its nature and the payment options available for you.
An MLM Merchant account lets you accept payments from distributors and customers worldwide. Its smooth and efficient electronic payment processing drives profits to MLM companies. Their different payment channels help customers and distributors do business with you easily.
Credit Card Payments
An MLM merchant account lets you accept debit cards and credit card payments. Countries such as the US, UK, France, China, Australia, Japan, and Sweden use cards more than cash for their purchases.
Electronic checks are also one of the most popular alternative payment methods in the US. Compared to a traditional check, it arrives at your system quickly and reliably without the hassle of going to the bank. ACH is also a fast and cost-effective way to pay distributors in the US with same-day direct deposit.
Alternative payment methods
More than 80 different payment options are available for shoppers anywhere in the world. For regions where cards are less favored, local bank transfers and digital wallets can also be used. Increase your sales by up to 40% simply by offering buyers familiar and trusted payment methods in their region.
The multi-currency processing feature of MLM merchant accounts helps you boost international sales. As you take your business globally, you can now accept payments in 160 currencies and receive settlements in all major world currencies.
Know its features and benefits
To make your business more profitable and sustainable, here are some important features of an MLM merchant account.
Efficiently process large orders via batch uploads
Have unlimited virtual terminals for fast processing of mail or phone orders (MOTO)
Secure Payment Gateway
Meet cardholder security and government compliance standards to protect your business and your customers
Conveniently accept payments on a recurring basis so you don’t have to miss any order
Get guidance and valuable content on preventing and minimizing chargebacks
Customize rules and payment processing filters to protect your transactions from fraud. Also, have the option to review questionable transactions
Get approved by optimizing your application.
Knowing what payment processors are looking for in your merchant account application will help you secure that approval fast with the best payment terms. Even though multi-level marketing companies are classified as “high risk” applications due to its tendencies for higher chargeback ratios and unpredictable growth patterns, many banks are still open to doing business with the industry. Your dedicated merchant account manager will work with you to get fast approval with the lowest rates possible.
Filling out an application form and securing supporting documents is the first step in securing a merchant account. Approvals for US merchants take 5-7 business days while international payment processors take 7-14 days. Here are the supporting documents you would need:
- colored copy of driver’s license or passport of the signer
- voided check of the settlement account
- 3 months business bank statements
- 3-6 months of payment processing statements
- business formation documents (i.e. Articles of Incorporation)
Presenting your company in the best light
Underwriters review supporting documents thoroughly especially for high-risk accounts such as MLMs. Taking a proactive stance on mitigating chargeback risks and showing sufficient capital will help you secure approval with the best rates and terms.
- Present a chargeback reduction plan which shows how you would minimize chargebacks for your company
- Provide documents (i.e. banks statements) confirming that there is enough capital for your business
- Make a good online impression. Underwriters check the internet for reviews of your products and services. Keep negative comments to a minimum. If there are such comments, respond to them in a positive and polite manner to show you care about your customer.
- Include a short executive overview on how your business complies with legal requirements and how you plan to sustain profitability in the long term. Showcasing products that sell well over time is a good strategy in proving long-term profitability.
If the underwriter sees that your business is sustainable, your MLM merchant account will be approved. The bank will then issue your merchant identification number.
Know how to keep chargebacks to a minimum.
Knowing these surefire ways to minimize chargebacks will help you maintain good standing with the bank and focus on growing your business.
Good customer service
Make it easy for buyers to contact you for any product complaint. Also, make sure that service representatives are positive and polite to customers and they are able to provide alternative solutions or issue refunds if all other solutions did not work.
Use clear product descriptors so that buyers will remember their purchase when they look at their statements. Also, send electronic receipts to help buyers remember.
Adding 3D Secure
Adding 3D secured protocol offered by card brands helps you offload some chargeback responsibility to card brands and helps you prevent fraud in credit and debit transactions.
We’ve got you covered.
Let us help you get that merchant account today! Our goal is for you to get the fastest approval with the best terms while giving you professional advise on how to make the most of your account.
Book a call with our merchant account manager here!