MLM Personal Account System (e-wallet) Saves On Chargebacks

Introduced by INS in the year 2000 based on experiences in Japan, the MLM Personal account (MLM e-wallet) gives every member an "MLM Personal Account" and supports multiple currencies.

To fully utilize this e-wallet (personal account) system, you do not physically send earnings out each commission period, but rather pay them into the MLM personal account and members have control of how and when they get paid.

A member could choose their earnings to be accumulated in their MLM Personal Account until they have $500 and only then sent in order to reduce any service charges you may charge. This saves you significantly in corporate costs or processing payments.

Your members likely will let the money accumulate in their MLM e-wallet and have their autoship or recurring order taken from their personal account balance. This reduces your Visa/Mastercard fees, AND protects you from chargebacks as the transaction now becomes internal.

The MLM e-wallet is especially useful once you are an International company offering paychecks as your member payment method. (STILL the most profitable way to pay members due to inherant breakage in checks that are never cashed, believe it or not it is 10% or higher

In Japan, members pay a service fee of $50 or higher JUST TO CASH a check.

The MLM Personal Account saves members money AND saves your company money as members can accumulate earnings to:

  1. Pay for autoship from earnings (reduces charge back risk, merchant account fees, and reduces sales volume growth rate securing your gateway even further)
  2. Create a gift certificate from their earnings to enrol a new member and collect the money directly from them (VERY common in Asia, reduces charge back risk, merchant account fees, and reduces sales volume growth rate securing your gateway even further)
  3. Create an inter-member transfer for a downline to cover autoship, OR create their own Gift Certificate to enrol a new member (reduces charge back risk, merchant account fees, and reduces sales volume growth rate securing your gateway even further)
  4. Accumulate earnings to request a bigger payment, saving on Service Fee's (saves the company money in time associated to pay your members)

With the MLM e-wallet system, your members are still in control as they reduce YOUR MLM Company risk as they have options in how to get paid:

  1. They can request to be paid all their money EVERY pay period just like a traditional company
  2. They can request to be paid all BUT ENOUGH to cover their next autoship
  3. They can request to be paid anytime their balance hits a specified amount in order to reduce your check or debit card payment fees you charge (you should be charging a $5 to $10 fee per withdrawel as it will incentivize them to use this feature even more)
  4. They can use their MLM e-wallet (MLM personal account) to enrol others
  5. They can use their MLM Personal account to buy more products

Choice, Flexibility, Control, your members will love the MLM Personal Account, and YOU will Profit MORE from it! Win Win.

Check out our Blog Article on the personal account to see a financial breakdown on savings by Clicking Here

MLM Gift Certificates

On top of the MLM personal account system being very efficient allowing members to control how they get paid commissions, it also solves some other age old MLM issues.

Credit card transaction fees can cost your company a lot and 3rd party credit card use can increase chargeback risk.

With MLM Gift Certificates, a member no longer needs to try to use their own credit card to enrol a friend without a credit card.

They issue a Gift Certificate from their "MLM Personal Account", collect cash (PayPal, Solid Trust Pay, or any other 3rd tier money system) from the friend, and give a Gift Certificate code to the friend to enrol with.

If the Gift Certificate value is more than signup order amount, the balance goes into the new members personal account for future autoship or purchases.

The best part is, the company can choose to service charge MLM Gift Certificates by way of a flat fee or a percentage.

Security of this transaction is safe as it is a "Double Opt In" arrangement in that the issuing member has the ability to cancel a certificate any time up till it is redeemed.

Check out our Blog Article on MLM Gift Certificates by Clicking Here

MLM Inter-Member Transfers

Members can use their Personal Account (e-wallet) balance to issue Inter-member transfers to other members. (just like PayPal etc.)

MLM Inter-Member transfers are often used for members without credit cards to cover their autoship from their MLM personal account.

Check out our Blog article on Inter-Member Transfers by Clicking Here

What it means is both Significant Savings, as well as Increased earnings.

The Savings come from reduced effort to combat Credit Card Charge backs (often 2 to 3 hours per chargeback to fight it) as well as the savings in bank charges that come from those charge backs (often as much as $45 USD per occurrence) and finally a significant savings in both the amount you save by not processing as much through your Merchant account. (think 3% to 10% discount rate as well as 0 to $1.00 per transaction and potentially 10% rolling holdback)

On sales of a simple $1,000,000 a month imagine the potential savings.

Finally, you will have less tied up in your "Hold Back" account with your merchant processor. (often 0 to 25% on a 6 month rotating basis) On a million in sales, even 5% holdback would mean $50,000 of your cash tied up without interest.

Increased Earnings can be generated as you can put a service charge (flat fee or percentage) on each MLM Inter-member transfer or MLM Gift Certificate used. Imagine if you service charged simply $1 per, and had 10,000 members who used one per month!

You also can be very prudent with your members unclaimed balances by putting them into a money market fund and earning interest on all those funds voluntarily left in your MLM company care. Again imagine 10,000 members with simple $100 in their account on average, $1,000,000 in a safe account earning you a return.

The Deluxe system comes with an advanced Personal Account System

The personal account system helps to deal with a number of big financial issues MLM Companies face today.

  1. Credit Card Merchant Accounts are hard to get
  2. Credit Card Merchant Accounts are expensive
  3. Credit Card Chargebacks are time consuming and costly
  4. Members who enroll others with 3rd party Credit Cards.

Credit Card Merchant Accounts are Hard to Get

There are many factors that are making Credit Card Merchant accounts harder to get like 9-11 and Organized crime perpetuating credit card fraud.

Sadly, the bigger issues can actually start to affect you once you think you have succeeded in obtaining a Merchant Processor. Often Merchant processors have monthly limits on what you can process through their gateways and the fees for exceeding these limits can be very expensive.

Often Credit Card Merchant accounts can have holdbacks attached. What this means is, if you process $100 through their gateway, they will take between 3% and 25% of the total transaction and use it as chargeback protection on a rolling 6 months basis. This means up to 25% of your charged amount could be held for 6 months. So you get 25% of your sales today exactly 6 months from today.

Credit Card Merchant Accounts are Expensive

As stated above, often a per transaction amount of 0 to $1.50, and a "Discount Fee" of about 2% to 10% of each transaction, as well as a "Hold Back" percentage of 0 to 25% that the bank keeps locked up on a rolling 6 month basis.

Credit Card Merchant Account Charge Backs are Time Consuming and Costly

Most of our Clients say that it takes 2 to 3 hours to successfully try to fight a chargeback and that no matter how well prepared a certain percentage are lost regardless of paperwork trail. On top of the labour involved in fighting chargebacks, the bank often charges you a service fee of $45 or more for each and every chargeback. On millions of dollars in sales, you end up needing your own chargeback department.

On top of our Personal Account system, our MLM Software has numerous other methods employed to help you fight charge backs.

Members who enroll others with 3rd party Credit Cards.

A common problem that basically leads to many more chargebacks. With our Gift Certificate's and Inter-Member Transfers it is much less necessary for members to attempt to do this.

On top of the Personal Account system, our MLM Software has other methods to prevent users from enrolling others on their credit card should you choose to stop it from happening.

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