Why Do MLM’s Need A Merchant Account?
Multi-Level Marketing (MLM) companies began operating in the early 1980s, where they would sell pretty much anything directly to vendors. These companies work in the following way: an individual takes on the role of the supplier and sells it to different vendors, then that individual expects a commission on every product sold through the vendors.
Further, those vendors who become attached to MLMs tend to get products at lower prices which they can sell forward at a certain profit margin. These vendors can also extend the chain and have their own retailers to sell the products to. Today, there are millions of people who work through such a framework and earn a living. Many enterprises enter as MLMs and get millions of vendors to sell their products through.
However, it is then important for the MLMs to sustain this business model. In order to do so, they have to keep their transactions and credit scores secure. This is where the accounts come in. They have to get an MLM merchant account so that their enterprises stay profitable. You can also get an MLM merchant account for any of these goods and services:
Clothing & Attire
Wine & Alcohol
An MLM merchant account is categorized as high risk. This is important to remember when you’re looking for a company to help you set the account up for you. There are several reasons for this categorization. However, there are companies that can help you get the account safely and securely. eMerchant Authority is one such company and one of the best ones for that matter.
Use our fast application to get a custom tailored merchant account that fits your needs.
Do I Need A Merchant Account For My Multi-Level Enterpise?
MLM businesses are booming in America. More than 20 million individuals were working as MLM merchants in 2019 alone. This is a significant increase from 2018, and the ratio only keeps going up. Billions of dollars are transacted through this structure, but banks are still skeptical since it is considered a high-risk contract for them to enter. The biggest reason, as mentioned earlier, is the legality matter.
Most banks don’t want to deal with tough legal issues over accounts, so they don’t approve of MLM merchant accounts very easily. It is also because there is uncertainty with MLM merchants as to how quickly they will grow or what their yearly projections would be. Thus, making the accounts all the more high risk.
However, in no way does it mean that MLM businesses are not functional or successful for that matter. They do have the capability to make secure online payments. However, it then does not come from a traditional banking institution but rather a payment processing company like eMerchant Authority.
Companies like ours work with experts who know what they are doing and can help you with all your payment processes and credit card issues. We are also flexible with payment options, unlike some other companies who may charge lots of fees that are unaccounted for. So, if you wish to start up an account with us, you can simply apply through our website.
Does The High Risk Factor Matter, and How Does eMerchant Authority Help Me?
The high risk factor does matter since most MLM merchants have an ill repute for not complying with the law. The use of pyramid schemes is an unlawful way of acquiring money, which lots of MLM businesses do, and so a whole lot of money is lost. So, it becomes difficult to navigate through the high risk factor to create an account for your legitimate business.
Since the frequency of illegality is high, many banks would want to go through a thorough check-up of your contracts and documents. You will also be checked for your products and what price you have set for them. Along with lots of other queries, the application process can be a little scrutinous, but it is necessary to get as secure an account as can be.
eMerchant Authority is one of the leading companies that assist MLM businesses in securing MLM merchant accounts for them. We help out the company through the entire process of documentation, credit reports, and business structures so that the MLM merchant can get the best and most secure MLM merchant account for themselves.
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WHY USE eMERCHANT AUTHORITY?
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