What is MLM payment gateway?
Multi-level marketing (MLM) is a type of product or service promotion based on direct sales. Manufacturers of goods do not use expensive advertising, in fact, local distributors are engaged in the dissemination of information.
MLM is quite lucrative for business owners, but banks look at the MLM system from a slightly different perspective. For them, such business is associated with very high risks and they are reluctant to get involved in credit card processing.
Which MLM payment gateway to choose in this case? Can such companies really forget about online payments?
Of course, not. There is always a way out, even from the most difficult situations. In this article, we will talk about MLM payment gateway and its advantages.
Alternatives to bank accounts and cards for MLM companies
MLM is directly related to sales, and therefore, without the ability to accept electronic payments, the business will simply cease to exist.
An excellent alternative to cards would be electronic checks. Many people in the U.S. and other countries around the world use electronic checks for easy and convenient payment for items of interest to them.
Of course, the level of sales will directly depend on the extent to which the goods offered by the company will meet a particular need. However, all other things being equal, by adding electronic checks as a method of payment at checkout, sales increase by 20-25 percent.
When we talk about the need to make payments to distributors, electronic checks have no equal at all. It is thanks to them that payments can be credited to accounts inexpensively and quickly.
Now imagine what could be achieved if you added the ability to make payments in other very convenient ways.
Perhaps adding a large number of payment methods will significantly increase your costs? Not when you entrust PayOp with your payments.
With over 300 payment methods we’re ready to offer you, you’ll have a wide range of payment options for your customers. In addition, we offer very favorable rates and cooperate even with high-risk companies, which most banks simply refuse.
MLM merchant account: what makes it so good?
By partnering with PayOp, you will receive several important advantages:
- Advantageous rates;
- The ability to accept online orders quickly and easily;
- Availability of batch downloads and fast processing of orders;
- High level of security. We provide high-level PCI DSS L1 security, so your customers can safely make payments without fear of having their information or sensitive payment data stolen;
- We work with companies from different countries and territories;
- Access to mobile payments and other payment methods, the most popular today;
- High level of protection against chargebacks. Prevention of these payments before they happen;
- Mass payments.
Why do banks often refuse to serve MLM companies?
The largest and most famous MLM companies serve hundreds of thousands of clients, have a huge number of distributors around the world, but still many banks refuse to serve them.
Why does it happen?
One of the main reasons is the significant amount of chargebacks. The growth model of such a company is unpredictable, and the legal obligations raise serious concerns for many financial institutions.
The situation is not rosy for the company. On the one hand, many firms are profitable, their products are of high quality, but the risks are still high.
In addition, the bank is well aware of how many MLM firms turned out to be a regular financial pyramid. Fraudsters simply cheated their distributors and customers, which has left its mark on the already flawed reputation of the industry.
Even if some banks are willing to cooperate with MLM companies, checking all documents and making a final decision will take a long time. To compensate for the high risks, banks will offer such companies higher rates. It can take more than one week for the document verification alone.
If you want to get all the online payment options faster by giving your customers even more payment options, contact our company.
From now on you will no longer have to worry about the high risk of your business and opening a merchant account, because we will take care of everything for you.