Visa Mastercard Merchant Processor for Travel Company

The travel business is an evergreen industry and every year more and more people travel to exotic destinations. If you are a travel agency, then you will have customers from around the globe.Being able to accept credit card payments online or over the internet will not only improve your business but has become a norm in today’s internet world. What is a merchant account? A merchant account is a temporary bank account where all the money from your customers are held before it is paid to you. In order to open a merchant account, you should apply to a bank, a third party card processor or other financial institutions. Payment methods With a merchant account, you can receive payments from your customers in a number of ways.
  • Credit card terminal – It is simply the credit card reader where the credit card is physically swiped. These are also called as card present transactions that require a signature and are considered low-risk transactions.
  • Payment gateway–A payment gateway is the online equivalent of the cash counter or the point of sale (POS). A merchant account provider uses a third party company or has their own payment gateway. A payment gateway comprises a virtual terminal and a shopping cart. The virtual terminal lets the merchant to log in securely and makes transactions by keying in card details. The shopping cart, on the other hand, can be used by customers to directly make online card payments for products of the merchant from a website. These type of transactions are called as ‘card not present’ and are considered high risk as card details can be easily stolen and misused.
What is a high-risk business? A merchant account provider will not underwrite your business if they consider it a high-risk business. This is because they need to safeguard themselves from financial losses. Your business does not have to be illegal or involve fraudulent payments to be considered high-risk, though those factors definitely make it one. g

There are various factors that can make your business fall under the high-risk category. What’s even surprising is that you may be considered high-risk by one merchant account while you may be accepted by another. Here are the features of a high-risk merchant account.
  • High chargeback volume

  • Card-not-present transactions
  • High transaction volume
  • Denied or shut-off merchant account
  • Start-up or a new business

Risks associated with a travel agency business No business is completely risk-free, but when it comes to a travel agency it is considered high-risk due to the following reasons.
  1. Advance payments
In the case of travel, customers like to plan ahead. So typically the reservations are made at least a good 60 to 90 days in advance. So the card processor has to not only wait out the period, but the payment may not be guaranteed at the end of the wait. Last minute cancellations due to a change in the plan are very common. g

  1. Ticket size
This refers to the price of the tickets. Though package deals can be much cheaper, most other travel destinations can be very expensive. What this means is that, in the case of a chargeback, a huge amount of money needs to be refunded to the customer by the merchant bank account. In situations where the merchant is unable to pay back the customer, the card processor will have to endure a chargeback dispute.
  1. Transaction volume
The travel industry also has a large transaction volume. When the transaction volume is high, it naturally translates into a higher chance of chargebacks. Large ticket sizes and high transaction volumes can put any card processor into trouble in case of chargebacks. Why you absolutely need us? Each business has its own set of requirements when it comes to payments. With a travel agency business, your customers can be located in different parts of the world. Hence the payments will also be in different currencies. You will need a merchant account that can process transactions involving multiple currencies. Also, as the customer base is not restricted to a particular geographical location, many different types of credit card payments will be used by customers. Your merchant account should be able to accept payments through all the popular credit cards like Visa, MasterCard, Discover, Amex etc. We have experience working with many travel agency businesses and truly understand your needs. We also understand that your business is considered high-risk by other merchant account providers. But we are more than willing to underwrite your business and offer competitive rates. Here is what you will enjoy.
  • Fast or same-day set-up
  • Quick and easy online application
  • No application fee
  • No set-up fee
  • Chargeback management

  • Both domestic and offshore merchant account options