Warren Buffett’s Not-So-Clear Stance on MLM’s

Nov 26, 2014

When MLM expert Bill Keep penned a letter to Warren Buffett about the differentiation of MLM companies and “pyramid schemes”, he wanted a reply. Of course, he has not gotten one. However, this conversation can make merchants weary about their own companies and ventures, as MLM’s and “pyramid schemes” sometimes mirror each other.

While home sale companies are huge, they are known as “pyramid schemes”, due to their trickle down moneymaking schedule. Herbalife learned this the hard way earlier in, as indictments were handed down to its fraudulent owners. One that is getting a lot of attention – for good reasons – is Pampered Chef, which is on the New York Stock Exchange, and was the basis of Keep’s article to Buffett. Pampered Chef operated the same way as many other companies in its realm, but the fact that it is successful enough to be offered on the NYE brings hope to many that these are not just scams, but legit opportunities.

Even though they are legit, finding a merchant account provider to process payments can be tricky. This is because they have a reputation of being not so legitimate. While tricky, it is possible to locate a MLM merchant account. One of the best options is EMB. eMerchantBroker.com is one of the top-rated MLM merchant account processors in the United States. While other may jack-up rates, EMB does not. EMB also offers chargeback insurance, in an effort to kept curb chargeback fees if they occur. If you have ever suffered a chargeback fee, you know the damage that one can do to your company’s finances. While others pay promise to keep your rates low, they tend to raise them once a fraudulent charge occurs. Not with EMB. We understand that these things happen, and we will help you get through them.

Let us help you get a MLM merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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