Accepting Card Payments for Travel Agencies
As a travel agent, you already know how hard it is to setup a merchant account due to the perceived high risk status. We understand your business’ need for card payment processing, as the consumer prefers to pay by debit/credit card as a means to pay for the holiday as its less hassle and it provides them with added security and protection just in case anything was to go wrong with any provider(s) linked to the holiday i.e the flight provider, hotel, tour provider and so on.
So Why Is Travel Classed As High Risk?
A typical travel agent acts as a broker that’s associated with many providers. You could pay the travel agent for the flights, the hotel accommodation, hotel transfers, excursions and much more. Usually a deposit or full payment will be taken upfront for the holiday so the travel agent can pay the other parties involved. On average, the time taken for a customer to actually go on the flight or holiday once payment has been taken is around 90 days, which is a very long time and if there were a problem with any of these providers, ie, dates no longer available for flights or hotel, hotel goes bust or anything else that could potentially disrupt the holiday plans could result in a chargeback dispute.
However, since your business falls within the description referred to as high risk, you may be considered for a 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 services for travel agents to have a cash reserve or a rolling reserve fund added to their merchant agreement. The merchant cash reserve or a rolling reserve fund 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. A typical rolling reserve may require the merchant bank to hold anything from 5-25% up to 180 days.
If your business is a travel agency, a tour guide service provider or any other related business, securing a merchant account that is suitable for your needs from the traditional merchant banks, who are more worried about risk and legal exposure, could be challenging.
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. Contact Us
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, with electronic payment acceptance 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 far fetched. 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 and fraud. This is where we come in.
We Tranxact recognises 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 merchant account for travel agencies.
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.
- Travel agencies
- Tour operators
- Independent travel agents
- Timeshare Resellers
- Online travel reservation websites
- Cruise lines
- Ticket sales
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 best and only option that many merchants have had is to resort to cash, cheque and bacs, which isn’t allowing that business to generate as much revenue as it should do. 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 a merchant account for travel agencies with tailored payment processing solutions to meet every travel agent merchant account needs because we specialise in High-risk merchants.
So, if you need a merchant account for travel agents, you can count on We Tranxact where others had turned you down.
High-Risk Merchant Account for Travel Agents: We will find a way for you
Even though an exact definition of what constitutes a high-risk industry or business may not be available, because what constitutes a risk depends on each processor’s level of risk tolerance, the following industries and businesses are just some of the type usually considered as high risk:
High Ticket Sales
Annual Membership Sites
Travel Agent Payment Processing Solutions
Notwithstanding the above, and as part of our merchant services for travel agents, you can count on us to strike a balance between meeting some of these requirements and providing your business with travel agent payment processing under our high-risk merchant account for travel agents.
We have teamed up with some great and well established card processors that understand what its takes to secure a travel merchant account. We have travel merchant accounts available for UK and EU merchants.
We can help with:
- New startups
- Card machine for offline travel agents
- MOTO (Virtual Terminal) for travel agents taking payments over the phone
- Internet merchant account for online travel agencies
- Multi – currency processing
- Many years industry experience, having worked alongside some of the biggest and well known brands
- Reach more customers globally and grow your sales
- Possible no minimum reserve
- In house chargeback and fraud risk team
- Dedicated account manager
If you’re new to payments or switching provider, we can certainly help
Call us and speak to one of our representatives 0121 792 5367 Contact Us
We could have you approved as quickly as 2 hours!
Working with us, we could help you to reduce your exposure to risks.