Personal Account System Saves On Merchant Account Chargebacks

The Personal account system works by giving every member who joins your company a "Personal Account" in as many currencies as you the company choose to support.  This means no longer do you need to send earnings out each week or each commission period by check or debit card, but rather members can have control of how they get paid and when they get paid.

A member could for example say they would like their earnings to not be paid to them until they reach an accumulated commission amount in their personal account of $1000, then they would like it sent to them by Check.  This may happen if you are an International company that sends out paychecks, and a Country like Japan for example charges a service charge of almost $50 USD to cash a check.  The member may choose to wait till their money has accumulated to a large enough amount to justify paying that service charge.  The member could further instruct the company to send a check when they hit $1000 in balance, but leave enough behind to cover their next autoship. This action alone could save your company $1000's in Visa charges and eliminate chargeback risks.

Of course members can decide to just get a paycheck every period as per a regular MLM Software scenario. 

Members can also decide at any time to ask for any amount of money (up to their entire balance minus outstanding inter-member transfers or gift certificates) by any of the payment types you are willing to pay out by.

Gift Certificates

On top of the personal account system being very efficient to allow members to control how they get paid their commissions, and when, and by what method, it also allows them to solve some other age old MLM issues themselves.

3rd party credit card transactions these days can cost your company a lot of money with chargeback risk. 

With the use of Gift Certificates, a member would no longer ever have the need to use their own credit card to enroll a friend that doesn't have a credit card. 

They would simply ensure they have enough in their "Personal Account", collect the cash from the friend, by way of money, Paypal, or whatever payment system outside of your company they choose to use, then issue a "Gift Certificate" to their friend by email that the friend would use to enroll into the company with. 

If the Gift Certificate Sending member sends more than necessary for the signup, the balance would go into the new members personal account for future autoship or purchases.

The best part is, the company can choose to service charge 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.

Inter-Member Transfers

Once a member is enrolled, they can use their Personal Account to issue an Inter-member transfer to any other member in the system.

By the same method, they collect the money in whatever way they see fit from the other member, then send an Inter-member transfer to the member.  Again double opt in so the issuing member can cancel anytime up till the receiving member claims it, but the receiving member also must hit a button to accept the transfer.

The Inter-Member transfer stuff is often used to have members without credit cards able to cover their autoship from their personal account.

So What does it Mean to Your Company?

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 2% to 6% discount rate as well as 0 to $1.00 per transaction)  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 happen due to the fact that you can put a service charge by way of a flat fee or a percentage on each Inter-member transfer or Gift Certificate used.  Imagine if you service charged simply $1 per, and had 10,000 members who used one per month!

Another way of increased earnings are the fact that you can be very prudent with your members balances by putting them into a money market fund while they sit there.  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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