✈️ Travel Merchant Account and Online Payment Processing

A travel merchant account is a kind of high-risk merchant account that is designed for businesses that are affiliated with the travel and tourism industry. These accounts help travel agencies, tour operators, online travel agencies (OTAs), airlines, cruise ships, and other travel related businesses accept credit card payments. Due to the fact that the travel industry has its own specificities, traditional payment providers regard such companies as high-risk and therefore certain types of merchant accounts are required.

Why Travel Agencies Are Considered to be High-Risk Businesses by Payment Service Providers

The travel industry has the following characteristics that make it to be classified as high risk in the payment processing process:

• Future Service Delivery Model: The majority of travel companies make the sales before the service is delivered by a few weeks or even a month to several months thus making the company vulnerable to chargeback; mostly through on-the-go mobile devices.
• High Average Transaction Values: Some of the products that are offered include vacations, cruises and international flight which are considered as high value transactions that are risk to payment processors.
• Elevated Chargeback Rates: The industry has higher chargeback rates than others due to factors such as cancellations, customer's dissatisfaction and others that are beyond the control of the merchant (floods, political strikes, etc.).
• Business Cycle – Seasonal Variation in Revenue: The majority of travel businesses have sharp fluctuations in the revenue and thus face unique challenges with respect to cash flow.
• Global Transactions and Foreign Currencies: This is because international bookings are cross border transactions and thus come with foreign exchange exposures.

The Main Characteristics of Good Travel Merchant Accounts

When choosing a travel merchant account provider, businesses should look for the following key features:

1. High-Risk Expertise: Choose providers like Adaptiv that are well-versed in high-risk merchant accounts and know the specifics of the travel industry.
2. Robust Fraud Protection: It is important to have strong tools that can help in identifying potential fraud before it turns into a chargeback.
3. Chargeback Prevention Systems: Chargeback prevention and management solutions provided are very useful in maintaining good chargeback ratios.
4. Multi-Currency Processing: The ability to accept payments in different currencies is very useful for the international travel firms.
5. Booking Platform Integration: It also ensures that payment processing is smooth with popular travel booking systems.
6. Recurring Billing Support: This is important for travel related products or services that are subscription based, or for products that are offered on installments.
7. Competitive Processing Rates: Since high-risk accounts are generally more expensive (higher setup fees, other additional fees), it is still crucial to find good rates for profitability.

Payment processing tips for travel businesses

The following strategies can be used to increase account approval rates and decrease payment processing problems for travel businesses.

• Clear Cancellation Policies: It is well known that clear policies which customers must accept at the time of booking can help to avoid arguments.
• Detailed Transaction Documentation: It is recommended to keep all the records of the transactions, customer communications and service particulars.
• Customer Verification Procedures: Implement address verification services (AVS), card verification value (CVV) and 3D Secure authentication for online transactions.
• Proactive Customer Communication: This can help to reduce the level of the customers' concern about the future services that they will receive.
• Reserve Funds: It is recommended to have a separate fund to cover the chargeback disputes or seasonal fluctuations.

The Adaptiv Advantage for Travel Merchant Accounts

Adaptiv is a company that offers payment processing solutions for travel businesses as its core product. We have a separate team of professionals who are well aware of the problems that travel merchants may face and provide the appropriate solutions for their resolution. With Adaptiv, travel businesses can get:

• Specialized high-risk merchant accounts with competitive rates
• Advanced fraud detection and prevention tools
• Comprehensive chargeback management systems with unmatched chargeback alert system
• Seamless integration with popular travel booking platforms
• Multi-currency processing capabilities
• Dedicated account managers with travel industry expertise
• 24/7 customer support for immediate assistance
• Accept all major credit cards: American Express, Diners Club, Discover, JCB, Mastercard, Visa, and more

When you decide to work with Adaptiv for your travel merchant account needs, you get secure and reliable payment processing solutions that are tailored to the needs of all business types in the travel industry. We focus on high-risk industries, so your business will be able to make payments easily at peak times or when selling high-value products and services. Rest easy with Adaptiv as your merchant services provider knowing we have the expertise to meet your needs.