Earnings & income claims
They have to be defensible and non-deceptive, deceptive income claims are the fastest way an MLM draws enforcement, and the way a processor inherits liability it didn’t price for.
Specialized, consult-first
Payment Processing for MLM & Direct Sales Companies
We board corporate MLM and direct-sales companies on dedicated merchant accounts, published rates from around 4.0%, inbound card and ACH processing plus distributor commission payout rails, chargeback controls, and FTC-aware compliance underwriting. Mainstream processors prohibit the category over income-claim and refund risk; we underwrite the corporate entity's model and compliance in a consultation-led process. We board companies, not individual distributors.
- Corporate entities only
- Distributor commission payout rails
- Published from 4.0%
Answer first
Yes, a compliant MLM corporation can get processing
Direct-sales companies hear ‘no’ a lot. Stripe and PayPal prohibit multi-level marketing outright, and most banks treat the category as untouchable, so even an established company with real revenue can find itself scrambling for processing it can rely on. The ‘no’ isn’t because the model is inherently illegitimate, plenty of direct-sales companies operate lawfully and at scale, it’s because the category concentrates the exact risks an aggregator won’t underwrite: FTC scrutiny of income claims and pyramid-versus-legitimate structure, refund and buy-back obligations that translate directly into chargeback exposure, and a reputational profile that makes risk-averse processors flinch.
We board it differently, and the distinction matters: we board the corporate entity, not individual distributors. An established MLM or direct-sales company with real volume and a defensible compliance posture is a boardable business here. A rep signing up to run their own sales isn’t what this account is for. The path is consultation-led, we review the model before we board it, because there’s no responsible way to price this category off a form.
What the review covers
What the FTC and the card networks actually scrutinize
Refund & buy-back policy
Generous (and legally required) return rights are good practice but also a chargeback vector that has to be managed.
Distributor agreement & comp plan
We confirm the structure reads as legitimate direct sales rather than a pyramid.
Two-directional money flow
Inbound card and ACH for product sales, plus commission payout rails to the field, with records that keep both legs auditable.
Important
FTC earnings-claim exposure makes this consult-first
Deceptive income claims are the single fastest way an MLM draws FTC enforcement, and the way a processor inherits liability it didn't price for. FTC rulemaking around earnings claims and business opportunities is active right now, so we underwrite against current expectations rather than a static checklist, and our sponsor bank must concur before boarding. We board the corporate entity, not individual distributors, and only after a consultation-led review. See how our underwriting works.
Compliance
What the compliance review covers, and how the money moves
The review focuses on what the FTC and the card networks actually scrutinize. We look hard at your earnings and income claims, they have to be defensible and non-deceptive, because deceptive income claims are the single fastest way an MLM draws enforcement and, separately, the way a processor inherits liability it didn’t price for. We review your refund and buy-back policy, because generous (and legally required) return rights are good practice but also a chargeback vector that has to be managed. And we look at your distributor agreement and compensation plan to confirm the structure reads as legitimate direct sales rather than a pyramid. FTC rulemaking around earnings claims and business opportunities is active right now, so we underwrite against current expectations rather than a static checklist.
A direct-sales business has two-directional money flow, and the account has to handle both. Revenue comes in from customers and distributors buying product, through card and ACH; commissions go out to the field. We structure the account around that reality, inbound processing tuned to the volume, and commission payout rails for the distributor side, with the records and controls that keep both legs clean and auditable. Chargebacks are the pressure point, especially around refunds and the occasional distributor who disputes a charge, so our chargeback management is part of the setup from day one.
Rates & reserves
A published starting point, finalized in consultation
| Effective rate | Reserve | Settlement | |
|---|---|---|---|
| Corporate MLM / direct sales | From ~4.0% + interchange | Set by underwriting, case by case | Set by underwriting after consultation |
Given the depth of the review, your rate and any reserve are established individually during the consultation, based on your volume, model, compliance posture, and chargeback history. You'll see the terms before you commit. See full pricing →
How it works
The model reviewed before it's boarded
1
Request a consultation
We review your corporate model, earnings claims, refund policy, distributor agreement, before we board, because this category can’t be priced off a form.
2
Compliance review
Underwriting checks income claims, refund and buy-back policy, and the comp plan against current FTC expectations.
3
Sponsor concurrence
Our sponsor bank reviews and concurs on the relationship, the step this restricted category requires before boarding.
4
You go live
We set up inbound card and ACH plus commission payout rails, with chargeback controls and your rate and reserve in writing.
A written decision
You see exactly where your file stands
No black-box ‘no.’ Underwriting tracks every requirement to completion and issues a written memo: why you were approved, your rate, and any reserve, visible before you go live.
- Onboarding checklist tracked to 100%
- Rate and any reserve set out in writing
- Earnings claims and refund policy reviewed up front
FAQ
MLM & direct-sales processing FAQ
Which payment processors accept MLM companies?
Specialist high-risk processors do, on a dedicated account for the corporate entity, not mainstream aggregators, which prohibit or freeze the category. An established, compliant MLM or direct-sales corporation can be boarded when its earnings claims, refund policy, and distributor model hold up to scrutiny. GivePayments boards corporate MLM and direct-sales entities on accounts built for the volume and the chargeback exposure, after a consultation-led compliance review.
Why do MLM companies get declined by Stripe and PayPal?
Because the category carries concentrated regulatory and dispute risk. The FTC scrutinizes income claims and pyramid-versus-legitimate-MLM structure, refund and buy-back obligations create chargeback exposure, and the whole model is reputationally sensitive. Aggregators de-risk by prohibiting it outright rather than underwriting it. A high-risk specialist reviews the corporate entity's compliance and model and prices for the risk instead of declining on sight.
Can direct-sales companies process distributor commission payouts?
Yes, payout rails for distributor commissions are part of how we set up a direct-sales account, alongside the inbound card and ACH processing for product sales. We structure the account around the way money actually moves in a direct-sales business: revenue in from customers and distributors, commissions out to the field, with the controls and records that keep both sides clean.
Who do you board, the company or individual distributors?
The corporate entity. We board established MLM and direct-sales companies, not individual distributors or reps signing up to process their own sales. The underwriting is built around a corporate applicant with real volume, a documented compliance posture, and accountability for the model's earnings claims and refund obligations, which is what makes the account boardable and stable.
What compliance do MLM merchants need?
Expect a substantial review focused on the things regulators and card networks care about: defensible (non-deceptive) earnings and income claims, a clear refund and buy-back policy, a distributor agreement and compensation plan that don't read as a pyramid, and chargeback controls. FTC rulemaking in this area is active, so we underwrite against current expectations and set the account up to manage refund-driven disputes. This is a consultation-led, sponsor-concurrence path.
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Underwrite my direct-sales model, don't ban it.
If you run an established MLM or direct-sales company and need a processor that will underwrite your model instead of banning it, request a consultation.