Network marketing, direct sales, commissions
An MLM and direct selling payment gateway that reads the plan first.
OpenGate is a payment gateway for MLM and direct selling companies that need a merchant account for product orders, autoship and commission payouts. Network marketing is refused for one reason above all, the compensation plan: acquirers want proof that it pays on product sales, not on recruitment, and retail processors will not read it. We underwrite the plan, the continuity orders, the distributor flow and the history.
At a glance
MLM & Direct Selling
- Sector
- Digital services
- Payment methods
- Cards (Visa/Mastercard) · Payouts · SEPA Direct Debit
- Documents in the file
- 5
- First answer
- Within 1 business day
Why processors refuse
Why mainstream PSPs refuse MLM and direct selling
The refusals track the compensation plan. When commissions depend on recruitment rather than product sales, the model drifts toward something regulators punish, and the acquirer shares that exposure. Legitimate companies inherit the suspicion.
Compensation plan scrutiny
The acquirer must verify that commissions are earned on genuine product sales. A plan that rewards recruitment over sales exposes the bank to regulatory and scheme risk, and most processors refuse to perform the analysis.
How OpenGate handles it
We read the plan structure and the commission math before the file moves. Plans that pay on product sales underwrite normally; recruitment-heavy structures get flagged and discussed honestly.
Consumer protection exposure
Direct selling draws regulator attention over income claims, refund rights and cancellation rules in several markets. The acquirer inherits the compliance risk of every claim a distributor makes.
How OpenGate handles it
The underwriter reviews the marketing materials and the income-claim rules you impose on distributors. Clean policies are an underwriting asset, and gaps come back to you as a list to fix before submission.
Continuity orders and autoship
Autoship and monthly continuity orders keep distributors active but generate disputes when members forget the terms or find cancellation hard. The dispute pattern lands on the merchant account.
How OpenGate handles it
Recurring billing runs with scheme-compliant mandates and pre-billing notices, and the cancellation flow is read during underwriting. The reserve is sized to the continuity exposure.
Distributor payment flows
Commissions paid to distributors create payout flows the acquirer wants explained: who is paid, how, and whether the math matches the plan. Unexplained payouts look like risk.
How OpenGate handles it
The payout structure is documented in the file, and the payouts capability sends commissions on a schedule the acquirer has approved. The flow is written down before go-live.
Reputational history of the vertical
Past pyramid schemes have made banks cautious about the whole category, and a compliant company's file arrives pre-judged. Regulators still bring cases against plans that reward recruitment over retail sales, and each new case makes underwriters more careful.
How OpenGate handles it
We underwrite the business model, not the label. Your plan, your policies and your history go to acquirers that already handle direct selling, where the file is read on its merits.
The file
How we underwrite an MLM merchant account
The file proves the model: commissions paid on product sales, clear income claims and a cancellation path that works. We read the plan and the policies, then prepare the dossier for acquirers that underwrite direct selling.
Compensation plan
The full plan document with the commission structure, qualification rules, payout mechanics and the refund and inventory buyback terms. The underwriter reads the math before any bank sees the file.
Income claim policy
The rules you impose on distributors about income and product claims, plus samples of current marketing. Acquirers expect the company to control what distributors say.
Product documentation
What the catalog contains, with the compliance status of each product in the markets you serve. The products have to be real and lawful, because the plan pays on them.
Processing history
Three to six months of statements with chargeback and refund data, or a structured start for a new company.
Corporate documents and ownership
Certificate of incorporation, shareholder structure and identity documents for directors and beneficial owners.
Payment methods
Payment methods for MLM and direct selling
Recurring orders are the core, so the method set is built around cards with continuity logic, plus local rails for European and Brazilian distributors.
Cards (Visa/Mastercard)
Continuity and autoship billing with scheme-compliant mandates, pre-billing notices and 3DS2 authentication on enrollment and first orders.
Payouts
Scheduled commission payouts to distributors in the currencies you need, documented for the acquirer during underwriting.
SEPA Direct Debit
For EU distributors and customers, direct debit supports monthly orders at lower cost than cards.
Pix
Instant bank transfers for Brazilian distributors, where direct selling is a major retail channel.
The process
Start with the application at /apply and describe the compensation plan, the autoship terms and your history. The plan is read first, because it decides what any acquirer will accept. The full four-step process is on /how-it-works.
FAQ
MLM and direct selling payment processing FAQ
Can I use Stripe or PayPal for MLM?
Why was my MLM merchant account closed?
Will my compensation plan be reviewed?
What documents do I need for an MLM merchant account?
How long does it take to open an MLM merchant account?
Will I need a rolling reserve?
Can I pay commissions through the gateway?
Do you accept new MLM companies without history?
What happens if a distributor makes false income claims?
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MLM & Direct Selling
Open your MLM gate.
Send the compensation plan, the policies and your history. An underwriter replies within 1 business day with an offer, a document list, or an honest no.
Free to apply. A human answer within 1 business day.