The travel and tourism market is among the world’s biggest industries. Taking a trip is generally appealing. But expeditions, trips, and flights cost a lot of money and make banks worried. Newer less-established travel merchants have a hard time getting financial institutions to take a gamble on their companies. Mainly because they think the travel industry is they see it as high risk. High-ticket costs, cancellations, a track record of having chargebacks, which are when credit card companies  reimburse the loss of disputed or deceptive deals, are a few of the reasons that standard financial institutions do not want to give you a travel merchant account.

If you are in a business that takes orders over the phone or online you need to be able to take charge card payments. So what happens hen your bank won’t help? You have been a trusted customer of theirs but they declined you. Then you applied with Stripe and Square; and that didn’t work out well. What you need to do is turn to a processor that approves high risk accounts. A company  like us at FinTechMerchantAccounts.com to acquire your travel merchant account.

Since FinTechMerchantAccounts.com focuses on high-risk merchant accounts, such as travel and timeshare.  We can customize payment processing solutions to fulfill your specific requirements. We provide practical pointers and suggestions here make it much easier for you to qualify for a travel merchant account. Fill out FMA’s online contact form and we can send you our one page pre-qualification form. Our underwriting team will review it and issue you a term sheet within 24 hours.

Business types that are in the travel category.

The travel industry is always attempting to remain competitive. To stay in line with other merchants you need to be able to accept payments by credit card from your clients.

Travel Merchant Account

If you own a travel-related businesses not pointed out here that you require payment processing for. You can start the application process with us today. High-risk merchants are our specialty.

Getting a higher credit processing volume for a travel merchant account.

Due to the history and background of travel businesses you may be given a travel merchant account with monthly processing volume caps. This means you are just permitted to submit a specific amount of credit card sales each month. Once that amount is hit you can no longer take charge card purchases that month. This can keep your company particularly if you own an e-commerce business that relies on credit card payments from operating.

Caps don’t go on permanently. Travel merchants that require higher processing volumes can request new caps in a couple of months. At that time you should should that you have low chargebacks.

Chargebacks skyrocket in the travel market.

Merchants in the travel market are hit with so many chargebacks for a number of various factors including high typical ticket rates. A lot of services connected to travel often cost a minimum of a couple of thousand dollars.

Given that the majority of your clients pre-pay for their tickets, trips, and other plans before they go on trips or utilize your services. Travel merchants are thought about greater risk. Lastly lots of travel companies end up failing. If you don’t refund  your customer for the charge you put on their credit card. If their tickets were pre-paid by customers when you shut down all of a sudden they are out the money and initiate a chargeback.

Calculating a travel merchant’s chargeback ratio. To calculate your travel chargeback ratio. Take your number of deals divided by he number of your of monthly transactions. For example if you had 100 deals and 4 chargebacks in any given month you would have a 4% chargeback ratio. The dollar amount of your chargebacks doesn’t matter to a processor. It only matters that you keep ratios low.

The high expense of chargebacks to credit card processors.

Risk is determined based upon the possible monetary loss to a charge card processor or its sponsor bank. Chargebacks that don’t get reimbursed by a merchant are mainly what drive risk. Your unsettled chargebacks, which take place when your clients dispute charge card charges, end up being the duty of processors or their sponsor banks.

Additionally, credit card processors may undergo countless dollars in loses for each merchant account when high-risk merchants maintain excessive chargeback ratios. Whenever your company exceeds a 2% chargeback ratio, credit card companies can fine the processor that approved your travel merchant account.

When the ratios remain high, processors have no option but to terminate their high-risk merchant accounts. To prevent putting your accounts in jeopardy, you should work to keep their deals volumes high and do whatever possible to avoid chargebacks.

Take a vacation from chargebacks.

To avoid chargebacks from ruining your business, you need to take actions to prevent them. With time, proof, and resources, you can stop them in their tracks.

To stop a deal conflict from turning into a chargeback, you need to prove that a customer did, in reality, reserve and pay for the tickets or travel-related services. Merchants are motivated to keep detailed paperwork of deals. Emails between a customer and you and evidence that a consumer utilized the very same IP address on another occasion when a deal was not disputed are very important pieces of proof for you to avoid a chargeback.

Having a clear refund and cancellation policies are critical for your business. They likewise need to be prominently shown on your website so your clients can read them when they make bookings or purchases. Other policies such as those associated to repeating billing for a membership strategy or plan or continuity parts to travel services. Likewise need to be easy to understand and quick to locate on your website.

You can protect Your business by sending out in-depth e-mail verification after you accept online or phone payments and bookings. Essential information for you consist of are:

Travel Merchant Account

Providing 24-hour customer service support is another manner in which can keep credit card deal disagreements lower. If a customer can live chat with an agent, your staff member ought to be trained to provide disappointed customers with full refunds. Refunds are much more cost-efficient than excessive chargebacks.  Lots of chargebacks can cost your businesses its merchant account and its capability to accept credit card payments.

Slash chargeback ratios with a mitigation program.

Considering that processors can end your travel and timeshare merchant account that don’t maintain chargeback ratios listed below 2%. You need to do whatever you can to avoid chargebacks. A basic easy method to cut chargebacks by 25% is to use a mitigation program. Using FinTechMerchantAccounts program you can avoid 2 out of every 8 potential chargebacks.

FinTechMerchantAccounts program is ideal for high-risk merchants like travel merchants. We provide an alert system to create a program that helps you solve credit card transaction disputes straight. It will enable you to attain the greatest rates of chargeback resolutions.

Classifications to use for travel merchants.

Federal statistical firms classify facilities using a list of six-digit mathematical codes referred to as the Northern American Classification System (NAICS). The information is used to gather, examine, and publish statistical information about similar types of businesses. The details is utilized to identify the method these businesses affect the economy in the U.S.

Companies in the travel industry typically use the following NAICS codes:

Travel and Timeshare Payment Processing

Merchant Accounts for Travel Agencies Trip Plans Travel Clubs.

Whether you are a travel agency or you offer timeshares, we have the merchant account you can depend upon. Keep Your Business Running Efficiently and Save Cash. Contact FinTechMerchantAccounts to get the process started today.

Further Reading on High Risk Payment Processing:

How Do I Get Approved For A High Risk Merchant Account

Merchant Account For Chargebacks

MATCH List Merchant Accounts