How to Get a Merchant Account for a High Risk MLM Business
So, you're in the MLM (Multi-Level Marketing) game. You’ve got your business model figured out, your products ready to sell, and a growing network of eager distributors. But there’s one major roadblock—getting a merchant account.
If you've already tried, you’ve probably run into this dreaded phrase: “high-risk business”.
Why? Because banks and traditional payment processors see MLM as risky. Chargebacks, regulatory scrutiny, and unpredictable revenue streams make them hesitate. The result? Your application gets rejected, or worse, your existing account gets shut down.
So, what’s the move?
Step 1: Accept That You’re “High-Risk” and Own It
Fighting the label won’t help. Instead, embrace it and find a provider that understands the industry. Your goal isn’t to convince a traditional processor to bend their rules—it’s to find a processor built for businesses like yours.
Step 2: Choose the Right Provider
Not all payment processors are MLM-friendly. Many will string you along through the application process only to decline you at the last minute. Others will approve you but slap on sky-high fees and unfavorable terms.
That’s where Adaptive Payments comes in. They specialize in high-risk merchant accounts, including MLM, and know exactly what’s needed to get you approved. Unlike traditional processors, they work with banks that actually want your business.
Step 3: Get Your Paperwork in Order
To speed up approval, be prepared. Most high-risk processors will ask for:
✅ A business license
✅ Articles of incorporation
✅ A detailed business plan
✅ A list of products/services
✅ Previous processing history (if applicable)
Having this ready makes you look more legitimate and improves your chances of approval.
Step 4: Optimize for Chargeback Prevention
One of the biggest red flags for merchant providers is high chargeback rates. MLMs often see chargebacks due to miscommunication or refund disputes. To keep yours in check:
- Offer clear refund policies
- Use transparent billing descriptors (so customers recognize charges)
- Implement chargeback alerts & dispute management systems
Step 5: Keep It Legal & Compliant
MLM has a fine line between legitimate business and a pyramid scheme. If you want a stable merchant account, you must stay compliant. That means:
- Avoid misleading income claims
- Make sure commissions are product-based, not just recruitment-based
- Follow FTC guidelines
A reputable merchant processor like Adaptive Payments will ensure that your business structure aligns with compliance standards, reducing your risk of account shutdowns.
Final Thoughts
Securing a high-risk MLM merchant account isn’t impossible—you just need the right partner. Traditional banks won’t get it. But a provider like Adaptive Payments will.
The bottom line? Stop wasting time with processors that don’t understand your industry. Work with experts who specialize in high-risk businesses, get your paperwork in order, and focus on building your MLM the right way.
Now, go make those sales. 🚀
