Tourism is a multi-billion dollar industry. The industry is highly unlikely to go out of business with millions of families and individuals vacationing every year. Who does not like to take a break and go off to exotic locations every once in a while?
The travel and tourism industry is one of the most thriving and rapidly growing industries right now. Travel & Tourism generated US$7.6 trillion in 2017 according to WTTC, a massive contribution to the global economy. With numerous added factors like hospitality, local attractions, entertainment, etc. being positively impacted due to tourism, more and more countries are making an effort to reap the economic rewards offered by it.
A Risky Business
High reward associates with high risk. Travel merchants are often perplexed when they are denied or find difficulty in obtaining a merchant account. Banks consider travel agencies a high risk business and often turn them down. High-ticket transactions, high chargeback volumes, refunds made due to disputes or fraudulent transactions are the reasons traditional financial institutions refuse travel merchant account to travel merchants. In case of travel agencies, Advance booking is one of the main reasons for high chargebacks since services are not delivered the same day they are booked increasing the risk of chargebacks.
With online booking being a norm, travel agencies simply cannot rely on cash and checks anymore. But in order to accept credit cards via phone or online, getting a travel merchant account becomes extremely essential.
Businesses can find a number of merchant account providers specializing in high risk businesses such as travel agencies, which provide tailor-made merchant account solutions to fit business requirements. With banks being of no help, travel merchants need to turn to a reliable and efficient merchant account provider, like IBS, to obtain comprehensive travel merchant account solutions.
Travel Merchant Account available for Multiple Related Business Types
The travel and tourism business comprises of different sectors with numerous businesses falling under this industry umbrella. Below mentioned are a few businesses that can obtain a travel merchant account:
- Travel Agents/Agencies
- Online travel websites
- Tour Operators
- Accommodation services
- Ticketing Agents/Agencies
- Airline booking
- Other travel related businesses
Travel Merchant Account
If you fall into one of the above category or any other related categories, a travel merchant account is exactly what you need and should be looking for.
There are a few points you need to take into account while approaching a merchant account provider for a travel merchant account:
What is the monthly transaction volume cap? As a travel agency, you deal with high-volume or large-ticket transactions frequently. Merchant account providers often put a restriction on the volume of transactions that can be processed in a month by a business, which simply means you cannot accept payment beyond a certain limit. This is done to protect providers against risk of high chargebacks.
Hence, it becomes extremely necessary for travel merchants to enquire about volume caps for their business. Look for high volume merchant account providers that often allow such businesses to transact higher than average payments. Volume caps can often be negotiated with a long-term processing relationship with the provider and a history of low chargeback ratio and no fraudulent transactions.
Does it offer payment gateway integration? If you are an online travel business, a secure payment gateway is a must. Some merchant account providers offer payment gateway services themselves, or you can find a separate processor too. Make sure the payment gateway is compatible with your website and ask for immediate integration from the provider itself.
Whether you are a first-time merchant looking for merchant account services or someone unhappy with their current processor, find a travel merchant account provider that offers customized credit card processing services for your travel business.