The Best Merchant Account for your Online Ticketing Sales and Box Office.
The growth of the Online Ticketing Industry has fundamentally changed how people purchase tickets for bands and live performances. The progression from venue-purchased and at-home printing to fully-digitized mobile ticketing means the days of standing in line at the box office are over.
According to industry research firm IBISWorld, the $5 billion online ticket industry grew 4.8% between 2011 and 2018. Innovations like mobile wallets, fingerprint scanning and digital tracking, along with continued technological advancements, ensure that online ticket sellers are likely to remain the primary source for tickets for years to come.
There are presently 562 online ticket companies in the industry, four of which accounted for over 22% of revenue in 2016. As companies continue to refine technology and cut costs, the industry is expected to keep growing.
Ticket brokers face special challenges where online business is concerned. As they depend on transactions being paid via credit card, they are likely to be considered high risk by traditional financial institutions. This can make it difficult to obtain the necessary online ticketing merchant account necessary to efficiently process payments. Merchants in this industry must turn to a processor like SecureGlobalPay to apply for an online merchant ticket account.
SecureGlobalPay specializes in offering high-risk merchant account and account services with multiple PCI-compliant payment gateways, fraud filters and chargeback management tools. Fill out SecureGlobalPay’s online application today and be approved for a merchant account within 24 – 48 hours that will accommodate your business’s every technological need.
Types of Online Ticketing Merchant Accounts
Businesses that are online retailers and resellers of tickets to live events must work to keep up with popular demand to see the latest musicians and events by using secure payment processing solutions via merchant accounts.
A merchant account from SecureGlobalPay can serve merchants offering tickets for the following events:
- · Children’s and family-themed performances
- · Dance, opera, and theatrical performances
- · Music concerts
- · Public appearances, fairs, and festivals
- · Sporting events
SecureGlobalPay’s experienced staff specializes in working with new and existing merchants, those rejected or terminated by other credit card processors as well as those with no credit, bad credit or a history of chargebacks. Fill out our online application to get started on obtaining an online ticketing merchant account now.
Online ticketing merchant account requirements
Merchants can get started on obtaining their online ticketing merchant account by filling out SecureGlobalPay’s online application. The following are minimum requirements for our processors and underwriters:
- A valid, government-issued photo ID (e.g., driver’s license, state/provincial ID, etc.)
- A bank attestation or void check
- Bank statements (3 months worth)
- Processing statements if applicable (3 months worth)
- SSN (Social Security Number) or EIN (Employer Identification Number)
- The URL to your secure, fully-operational website
The underwriting process for online ticketing merchant accounts
Underwriters are required to ensure merchants are engaging in legal and responsible business operations. A strong business model is a strong indicator the merchant’s business practices are above-board and will not produce a negative financial impact on credit card processors. Underwriters are wary of merchants that accrue excessive chargebacks – that is, credit card refunds for disputed or fraudulent transactions. Too many chargebacks can lead to termination of an online ticketing merchant account.
Underwriters examine the following when assessing a business’s risk ratio:
- Credit scores
- Credit card processing history
- Bank statements
- Company website
- Chargeback ratio
Companies with a high chargeback ratios, previously terminated merchant accounts, negative bank account balances, and a history of missed or late payments represent a greater risk to a processor.
Boost your chances of approval
- Show a significant, ongoing balance in your business bank account
- Settle all outstanding bills and debts
- Identify the business principal with the best credit history to apply for the merchant account
Following these steps will increase your chances of approval and enable you to obtain an account with fewer restrictions, such as caps on higher processing volumes and lower rolling reserves.
Why online ticketing merchants are prone to chargebacks
Banks consider online merchants that are service-oriented a higher risk because the lack of face-to-face interaction increases the chances of fraud. Such merchants are more vulnerable to transaction disputes.
Expensive products and services increase a risk of fraud as high-dollar amounts are more attractive to prospective criminals. Where online ticket merchants are concerned, this risk of this increases a few days before an event when tickets are at their highest level of demand. Overnight and same-day delivery also increases risk of fraud.
Last-minute tickets are more likely to be purchased with a stolen credit card. Delivered electronically, they provide illegal resellers (‘scalpers’) an opportunity to immediately resell them.
False claims by customers, such as the claim that tickets were never issued or received or that the purchase was due to fraudulent activity, are common in the online ticketing industry. Making a practice of investigating and gathering evidence about such cases (receipts, records, CCTV video, etc.) increases a merchant’s likelihood of successfully fighting fraudulent chargebacks.
High chargeback ratios: the risk to processors
Merchants with excessive chargeback ratios can cost credit card processors thousands of dollars in fines. A business with a chargeback ratio in excess of 2% can cause the processors that approved the online ticketing merchant account to be fined by credit card associations such as MasterCard and Visa.
Because these cut into processors’ bottom lines, merchants with chargeback ratios of more than 3% can find themselves terminated by processors as high-risk accounts.
Avoid excessive chargebacks
Processors generally calculate a merchant’s chargeback ratio by dividing the number of chargeback transactions by the number of total monthly transactions. Thus, an online ticketing merchant with 50 transactions and two chargebacks in a single month would have a 4% chargeback. The ratio is more important than the dollar amount.
A ratio of 3% or higher can close a merchant account. When an account is terminated, a merchant can no longer accept and process credit card payments.
There are a number of ways merchants can reduce fraud and trim down chargebacks:
- Integrating bot blockers, captcha and other internal tools to catch fraudulent orders
- Employing fraud detection software
- Restricting/delaying delivery of product
- Employing a delayed print-at-home feature to cut down on illegal digital ticket sales
- Require pick-up of front row and high-dollar tickets at the gate (“will call”)
Ensure your customers are aware of all purchase policies, including non-refundable tickets by clearly displaying this info on the company website, correspondence and promotional materials.
Ensure your merchant contact info is prominently displayed on websites and in correspondence so problems can be reported and delegated efficiently.
Lose the credit card processing cap
High-risk business can sometimes receive restrictions on the number of total credit card transactions they can process each month (a “processing cap”). This can prevent businesses from reaching their potential by limiting increases in volume.
Merchants that manage their support calls immediately, refund customers with ease and keep their chargeback ratios low can request higher credit card processing volumes caps in as little as three months.
Categories for online ticketing merchant accounts
Four-digit numeric codes known as Standard Industrial Classification (SIC) codes are common in the United States and many other countries for identifying businesses and their primary purposes.
Online ticket brokers and such fall into these SIC categories:
7389: Business Services, not elsewhere classified
7922 Theatrical Producers (except Motion Picture) and Miscellaneous Theatrical Services
7929: Bands, Orchestras, Actors, Entertainers, and Entertainment Groups
7999: Amusement and Recreation Services, not elsewhere classified
A complete SIC list is available via the US Department of Labor website.
A similar classification system known as NAICS (the Northern American Classification System) is a list of six-digit codes used by federal statistical agencies to classify business establishments. The classification system aims to gather, analyze, and publish statistical information about similar types of businesses and what their impacts are on the U.S. economy.
Online ticketing merchants fall into the following NAICS codes:
561599: All Other Travel Arrangement and Reservation Services
711130: Musical Groups and Artists
71190: Other Performing Arts Companies
711219: Other Spectator Sports
711310: Promoters of Performing Arts, Sports, and Similar Events with Facilities
711320: Promoters of Performing Arts, Sports, and Similar Events without Facilities
713990: All Other Amusement and Recreation Industries
812990: All Other Personal Services
Visit the United States Census Bureau to view the complete NAICS code list.
Merchant Account for Online Ticketing & Travel Agencies
There is no time like the present to cut out the extra fees and set up the ideal merchant account for your business.
Avoid the obstacles of time and red tape of traditional banks. SecureGlobalPay’s quick and easy online application process can enable you to get your merchant account set up in as little as 24 hours.
We Can Approve Ticket Brokers, Both Online and Offline
SecureGlobalPay has a wide network of available merchant accounts for ticket brokers and travel agencies. Eliminate the red tape and use our streamlined application process to find the perfect merchant account to suit your needs.
- No Application Fees
- Competitive rates
- Fraud Prevention Tools
- Multiple Secure Payment Gateway Options
- Ticketing & Event Insurance
- Chargeback Management Assistance