Merchant Account for Travel Agencies
Merchant Accounts for Travel Agencies
If your business is a travel agency, a tour guide service provider, it is involved with timeshares, or any other related business, securing a merchant account that is suitable for your needs from the traditional banks, who are more worried about risk and legal exposure, could be challenging.
As a travel agent, we understand your business’ need for a card payment processing solution, however, since your business falls within the description referred to as high risk, you may be considered under the high-risk merchant account for travel agents.
For a high-risk business or industry, which a travel agent business falls into, it is not uncommon for merchant service providers for travel agents to ask for a security bond/deposit, which could be substantial amount, going into the tens of thousands or a rolling reserve fund, which could be typically anything up to 10% of your weekly sales held for up to 180 days (this is wholly dependent on the travel agencies trading history and if any card processing history).
The rolling reserve fund as mentioned, requires businesses under the above type of business classification to set aside a percentage of their deposits to be held for about half a year on a revolving basis – as one fund is released, another is held back, this is aimed at providing some form of collateral to the acquiring banks and it is used by credit card processors to limit exposure to risks.
No matter what service you offer, whether a travel agency or you offer tour related services, you can count on us to find a provider that will provide your business a dependable merchant account.
We Tranxact recognizes the need for travel agents to process credit card payments in an efficient manner, they will need to find a processor who can give them a travel agent merchant account.
If you offer any of the undermentioned types of businesses or related business, you sure would need to call us to start looking for a provider who is willing to process your card payments. We have helped the following types of businesses to secure credit card payments account, we are positive that you could be next.
How to Improve Travel Agent
Business Payment Processing
The travel and tourism industry has continued to record significant contributions to the economies of many countries, and the services of travel agents have been some of the main pillars responsible for this, and if they were to continue to play more of these roles, travel agents need to be accessible, and with electronic payments being accepted from anywhere a customer comes from. However, many travel merchants find it difficult obtaining a travel merchant account from several financial institutions.
The reason for this is not farfetched, travel agents are considered to fall into the category of businesses regarded as high risks businesses. This risk emanates from their exposures to a large volume of chargebacks. This is where we come in. The chargebacks typically stem from the typical delay time. On average, the time between the actual booking of the holiday to attending is 90 days and as great as 1-2 years in some cases, which obviously leaves a very large window of exposure and risk for chargebacks.
Travel Agent Merchant Account
Owing to the dynamic nature of the travel business, travel merchants are usually restricted from accepting credit cards and their applications denied because most payment processors consider them high risks. It is our duty to provide affordable, reliable, and secure merchant account services.
The most option that many had resorted to is to collect money as a third-party. However, because the travel industry will always remain competitive and an important economic player, travel businesses must be willing to accept credit cards, in line with other merchants in other industries.
We strive to meet the needs of clients from the travel and tourism industry who require high-risk merchant accounts with tailored payment processing solutions to meet every travel agent merchant account needs because we specialize in High-risk merchants.
Get A Travel Merchant Account Set Up