MLM & Direct Sales Merchant Accounts
Reliable payment processing solutions designed specifically for multi-level marketing and direct sales businesses. Get approved with competitive rates, even if you've been declined by traditional processors.
- ✓Specialized processing for MLM and direct sales companies
- ✓Multi-tier commission and payout management
- ✓High approval rates for direct selling businesses
- ✓Global payment acceptance for international distributors
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Payment Processing Challenges for MLM Businesses
Understanding the unique obstacles MLM and direct sales companies face and how Kosipay solves them
High-Risk Classification
Multi-level marketing businesses are often automatically classified as high-risk by traditional banks and payment processors, leading to frequent account rejections or sudden terminations. Kosipay specializes in high-risk industries and provides stable, long-term processing solutions specifically for legitimate MLM companies.
Regulatory Scrutiny
The MLM industry faces intense regulatory oversight from the FTC and other agencies concerned with pyramid schemes and deceptive practices. Our payment solutions include compliance tools and ongoing support to help legitimate MLM businesses navigate regulations and maintain compliant operations.
Excessive Fees
Many processors charge MLM businesses exorbitant rates and fees, taking advantage of the limited options available. Kosipay offers transparent, competitive pricing specifically tailored to direct sales companies, with no hidden fees or unexpected charges.
Complex Commission Structures
MLM businesses require sophisticated payment systems to handle multi-tier commission structures, distributor payouts, and compensation plan calculations. Our specialized payment solutions integrate with MLM platforms to manage complex compensation models while maintaining accurate financial tracking.
Global Distribution Networks
Many MLM companies operate internationally with distributors across multiple countries, creating challenges with cross-border payments and currency conversion. Our payment solutions support global operations with multi-currency processing, international payment methods, and compliant distributor payout systems.
Processing Instability
MLM businesses often face sudden account terminations or freezes due to risk reassessments or policy changes. Our multi-bank network provides redundancy and stability for your business, ensuring you can continue accepting payments and making distributor payouts even if a particular processor changes their policies.
MLM Payment Processing Solutions
Comprehensive payment services tailored for multi-level marketing businesses
MLM-Friendly Merchant Accounts
Dedicated merchant accounts specifically designed for multi-level marketing businesses with high approval rates, even for previously declined companies.
Distributor Payment Systems
Sophisticated payment systems that manage distributor commissions, bonuses, and compensation plans with automatic calculations and payouts.
Recurring Billing Solutions
Subscription and autoship management for recurring product orders, preferred customer programs, and membership fees.
Multi-Currency Processing
Support for international operations with multi-currency acceptance, automatic exchange rate calculations, and local payment methods.
Distributor Portal Integration
Payment integration with distributor back-office systems for seamless commission tracking, sales reporting, and earnings visibility.
Event & Convention Payments
Mobile and on-site payment solutions for MLM events, conventions, and training sessions with immediate processing capabilities.
ACH & Direct Deposit
Efficient distributor payout options including ACH transfers, direct deposit, and virtual wallets for commission distribution.
Compliance Tools
Built-in regulatory compliance features, income claim monitoring, and documentation systems to maintain FTC compliance.
Advanced Reporting
Comprehensive financial reporting with distributor sales analysis, commission breakdowns, and accounting system integration.
Simple Application Process for MLM Companies
Our streamlined application process gets your direct sales business processing payments quickly
Complete Application
Fill out our simple online application with details about your MLM business model
Submit Documentation
Provide necessary documentation, including compensation plan, compliance policies, and business information
Compliance Review
Our specialist underwriting team reviews your application with MLM industry expertise
Account Approval
Receive account approval within 24-72 hours, significantly faster than industry averages
Integration Setup
Our team configures your payment systems and integrates with your distributor platforms
Start Processing
Begin accepting payments and managing distributor commissions with ongoing support
MLM Compliance & Risk Management
Global Distributor Payment Solutions
Frequently Asked Questions
Common questions about MLM merchant accounts and payment processing
Why are MLM businesses considered high-risk by payment processors?
MLM businesses are classified as high-risk due to several factors: regulatory scrutiny from the FTC and concerns about pyramid schemes, higher-than-average chargeback rates due to customer and distributor dissatisfaction, complex compensation structures that can create financial instability, industry reputation issues from problematic companies, and periodic regulatory actions against companies in the space. Kosipay understands these challenges and works with legitimate, compliant MLM businesses to provide stable payment processing.
What are the processing rates for MLM businesses?
Processing rates for MLM companies typically range from 3.5% to 5.5% plus a small per-transaction fee, depending on your business model, processing volume, and risk profile. While these rates are higher than those for traditional retail, they reflect the specialized services required for MLM processing. Kosipay offers competitive, transparent pricing with no hidden fees, and we provide custom quotes based on your specific business needs and distributor network size.
Do you require a rolling reserve for MLM merchant accounts?
Some MLM merchant accounts may require a rolling reserve, which is a percentage of your processing volume held in reserve to cover potential chargebacks and refunds. Not all accounts require reserves, and we work to minimize or eliminate reserves when possible based on your business history and risk profile. When required, reserves typically range from 5-10% and are fully returned to you after a predetermined period, usually 6 months.
What documentation is required to apply for an MLM merchant account?
For an MLM merchant account application, you'll typically need: business formation documents and licenses, 3-6 months of bank statements, processing statements (if applicable), valid ID for all owners with 25%+ ownership, detailed compensation plan documentation, distributor agreement samples, product information and pricing, website or back-office platform details, compliance policies regarding income claims and recruiting practices, and refund/cancellation policies. Our application specialists will guide you through the specific requirements.
How do your payment solutions handle distributor commissions?
Our payment solutions for MLM businesses include sophisticated commission management features: multi-tier commission calculations based on your compensation plan, automatic distributor payouts on customizable schedules (weekly, bi-weekly, monthly), multiple payout methods including ACH, direct deposit, and virtual wallets, detailed commission reporting for distributors and administrators, tax reporting integration for 1099 preparation, bonus and incentive management, and seamless integration with major MLM back-office platforms for unified financial management.
Can your payment solutions support international distributors?
Yes, our MLM payment solutions include comprehensive international capabilities: multi-currency processing for accepting payments in 100+ currencies, automatic exchange rate management, international distributor payout options including global ACH equivalents, localized payment method support for regional preferences, compliance tools for international tax regulations, distributor onboarding verification for different countries, and settlement options in multiple base currencies to simplify your accounting and financial management across borders.
Have more questions about MLM payment processing?
Speak With an MLM Payment SpecialistGet Your MLM Merchant Account Today
Don't let payment processing limitations hold back your direct sales business growth. Our specialized solutions ensure you can accept payments and manage distributor commissions reliably and securely.
- ✓High approval rates for legitimate MLM businesses
- ✓Advanced distributor commission management
- ✓Global payment processing for international operations
- ✓Ongoing compliance support and risk management
Get Started Today
Fill out the form below to receive your tailored payment solution
By clicking submit, you agree to our Terms of Service and Privacy Policy