According to Statista, the travel, timeshare and tourism industry generated $7.6 billion annually. The direct economic impact of this industry, including accommodations, transportation, attractions, and entertainment, was estimated at $2.3 trillion in 2016. Even though the industry has recently been hit with hardships, there’s still plenty of opportunity for those looking to cash in. If you are interested in accepting credit cards for High Risk payments online, SecureGlobalPay has the right solution for you and your business.
Despite the massive revenues in the travel and tourism industry, banks and traditional financial institutions are somewhat hesitant to approve Travel, Timeshare, Tourism & Hospitality merchants in general. The travel industry itself is known for high ticket prices, cancellations, and a reputation for having large volumes of chargebacks, returns and fraud. Banks and payment processors are shy when it comes to approval of merchant accepting credit cards for high risk payments.
This is problematic for any merchant seeking to accept and process credit card payments online or over the phone. Doing so requires the partnership of credit card companies and payment processors, acquiring banks and an online payment services provider. For the reasons above, they often balk when approached.
Travel, timeshare and tourism merchants need to partner with a company experienced in processing credit card payments in high risk industries. SecureGlobalPay is your answer. Our company specializes in high risk, hard to place merchant accounts. We offer chargeback management tools, PCI-compliant payment gateways, and fraud filters.
Our processing solutions are tailored to meet every merchant’s needs. Fill out SecureGlobalPay’s online application and get approved for a travel merchant account in as little as 24-72 hours.
Businesses in the Travel Industry
SecureGlobalPay provides merchant accounts for the following types of businesses:
- Travel agencies
- Independent travel agents
- Online travel reservation websites
- Tour operators
- Timeshare Resellers
- Cruise lines
- Ticket sales
Applying for a Travel Related Merchant Account
To apply for a travel, timeshare or tourism related industry merchant account, fill out SecureGlobalPay’s quick and simple online application.
Click here for a list of items you will need to provide underwriters for review.
Applications do not guarantee approval. But successful applicants can begin processing online payments in as little as 24 hours.
The Underwriting Process
Underwriters seek to verify that an applicant is running a reputable, legal business.
Click here for a preview of what happens during the underwriter’s review of a merchant account.
During their review, underwriters sought to identify risks to processors. Risks can include:
- A history of high chargeback ratios
- Poor credit card processing history
- Bad credit scores
- Negative bank account balances
- Unpaid bills and late payments
Settling any unpaid debts will also increase a merchant’s chance of approval. Make sure the principal with the best credit in your business submits the application under their name..
Taking these steps will improve your chances of approval, unrestricted by processing volume caps or a mandatory rolling reserve.
Chargebacks in the Travel Industry
Chargebacks (dispute of credit card charges) are common in the travel and tourism industry due to high price of tickets and frequent cancellations. This represents a challenge for travel merchants seeking to partner with traditional banks and financial institutions.
Banks and payment processors will tend to cancel merchant accounts when the chargeback ratio exceeds 2%. This means that once the number of chargebacks exceeds 2 out of every 100 transactions, the account will close.
It is critical to have a plan for managing your chargeback ratio. Here are some useful strategies.
Record Keeping. Obtain a customer’s name, address, telephone number and e-mail contact with each transaction.
Extra Steps. Some merchants even go that extra mile. They conduct ID verifications, request customer selfies or even avoid sales from countries with a high volume of fraud.
Payment Gateways. Entering a customer’s credit card information through a payment gateway allows direct transmission to the processor. This can reduce credit card transaction disputes.
Billing Descriptors. Include your merchant name, contact number, and return and refund policies in all correspondence.
Customer Service. Provide trained and experienced customer service staff who are available to listen and address customer concerns.
Apply to SecureGlobalPay now to begin the application process.
- No Application Fees
- Competitive Rates
- Dedicated Account Managers
- Secure Payment Gateway
- Digital Invoicing
- QuickBooks Integration
- Chargeback Management Tools