There are a lot of challenges in creating a travel merchant account. If you’re new to the travel industry or you’re about to start a travel business, you’ll realize this as soon as you try to set up a payment processor.<\/span><\/p>\n Even though the travel industry has exploded in recent years and nothing but <\/span>smooth sailing and growth<\/span><\/a> are in the industry forecast, it’s hard to find a payment processor for travel agents.<\/span><\/p>\n That’s because travel is considered a high-risk industry for payment processors, so there are going to be hoops that you’ll have to jump through just to accept credit card payments.<\/span><\/p>\n That’s not the best way to start a business and it can take the excitement out of one of the best moments when you’re starting a business – accepting your first payment.<\/span><\/p>\n Read on to learn how you can find a travel merchant account for your travel agency.<\/span><\/p>\n It was already noted that travel is considered a high-risk industry. Let’s look at the reasons why. <\/span><\/p>\n It basically comes down to how the business operates. Customers will pay a large sum of money to the travel agent in advance. This often results in a high amount of chargebacks. <\/span><\/p>\n For example, you might have a client book a tour months in advance. They might have to cancel and want a refund. Since you already put a lot of legwork into their trip, you have a policy where you keep the deposit.<\/span><\/p>\n The customer gets annoyed with you and the policy and calls their credit card company to file a chargeback.<\/span><\/p>\n That means that you and your credit card processor lose money on the transaction. <\/span><\/p>\n There are other challenges, too. As the travel industry is global, if you expand into new areas, you’ll have to be able to accept new payment method and currencies.<\/span><\/p>\n Not only that, but certain markets have their own regulations that you need to be aware of. <\/span><\/p>\n Fraud is a big deal in the travel industry, especially for cards, not present purchases. These fraudulent charges have cost airlines between <\/span>$2.4 and $4.8 billion<\/span><\/a> every year.<\/span><\/p>\n It’s not just airlines that suffer. Every aspect of the travel industry is at risk, including travel agents. You may have thought that you booked flights for your clients, only to find that the transaction didn’t go through because the bank or credit card company thought it was a fraudulent transaction.<\/span><\/p>\n With all of these challenges travel agents face, how can you possibly get a travel merchant account?<\/span><\/p>\n As a part of a global industry, you have to find a payment processor that understands the risks involved and the unique nature of accepting payments in the travel industry.<\/span><\/p>\n If you’re just starting out or you’re not happy with your current payment processor, it may be tempting to sign up with flat rate processors like Square and Stripe. <\/span><\/p>\n While these processors are convenient, they don’t do business with travel agencies due to the risk. Even PayPal is cautious when it comes to travel transactions.<\/span><\/p>\n All it will take is one or two chargebacks and your account can be terminated.<\/span><\/p>\n Your first step in finding a travel merchant account is to ask around. Check with other travel agents to see how they operate their payments. <\/span><\/p>\n Better yet, check with an industry association like the <\/span>American Society of Travel Agents<\/span><\/a>.<\/span><\/p>\nChallenges of Accepting Payments in the Travel Industry<\/b><\/h2>\n
Chargebacks<\/b><\/h2>\n
Growing Number of Payment Options<\/b><\/h2>\n
Consumer Protection<\/b><\/h2>\n
How to Get a Travel Merchant Account<\/b><\/h2>\n
Avoid the Usual Payment Services<\/b><\/h2>\n
Check with Other Agents & Associations<\/b><\/h2>\n