Travel is one of the biggest industries of the global economy and is projected to increment their presence and profits over the next two decades. The global travel and tourism sector is incrementing its strength and the influence of technology is driving the increasing of this sector. As well as it’s impacting in the electronic payments methods that we are using nowadays. Moreover, travelers are increasing their consuming and, in consequence travel agents needs to be more competitive at the time of accept payments, due to the consumers and business owners are always changing their ways of consume.
According to the World Travel and Tourism Council (WTTC), travel and tourism is constantly growing up, for example, by year 2018, the sector grew up a 3.9 percent, above global GDP growth of 3.2 percent and giving a record $8.8 trillion and 319 million jobs to the world economy. Inspite of this very good statistics, Travel Business are labelled as high risk, which means that travel agencies face payment processing troubles due to its excessive chargebacks and for this reason it is not easy to get travel agency payment processing, so, in general is often unable to find a secure payment processing solution for high risk businesses so, merchant accounts providers incur various restrictions and very high fees that will adversely affects the bottom line of high risks companies giving unfair contract terms beside of vulnerability which could cause the account closure. iPayTotal offers a wide spectrum of processing solution for travel businesses and high risk businesses in general.
TRAVEL AGENCY PAYMENT PROVIDERS
Travel businesses has increasing their profits in the last decade, positioning it as the industry with the more considerable growth in the last few years, and due to the highest standard of living improving that people is pursuing nowadays, it is expected that this increase will be even further. For this reason, a travel businesses it is very lucrative, but there’s an unexpected issue to have in mind, mostly of standardized banks, financial institutions and credit card processors stay away from this category of businesses because of they are tagged as “high risk”.
According to this, it is very important to understand the high risk nature of this industry and look for a way or method to make travel agreements, for this reason at iPayTotal we understand the need to provide a travel merchant account which is flexible and convenient, we have a commitment to provide an advanced payment gateway which is able to accept multiple payment methods, giving a reliable meaning to the transaction, improving the cash flow and increasing the market share. That’s why our clients feel a high customer satisfaction, in this sense iPayTotal has steady relationships with so many banks, and we have a network to provide you the better payment solutions adapted to your organizational requirements and needs, helping you to accomplish your goals. With iPayTotal you will run your businesses easily and your payment transactions process will be streamlined and innovative.
Why travel businesses are considered high-risk?
Travel businesses are an excellent and lucrative way to make money, because of people spend millions traveling across the globe each year. Nevertheless, travel businesses can find obstacles that need overcome before starting it. One of the most difficult is get a travel agency merchant account because of there are high risk businesses, why? Reason is the high rate of chargeback consequence of the mostly of the transactions are done and paid earlier than the customer can have access to the service. Unluckily, clients can be victims of unexpected situations and they have the right to cancel the booked trip, causing immediately a chargeback through the card company.
iPayToTal provides the best Payment Processing Solution for Travel Agents
It is awkward Access to travel agency payment processing due the high-risk tag that this businesses have, but, there are a considerable list of options available to this industry. In this sense, you can get a secure merchant account exclusively for travel businesses, however, as the merchant account provider assess continuously their risk profile this can decide anytime to get rid of a more risky, high turnover business being at side of numerous lower risk businesses. We have solutions for mostly of travel businesses the list includes vacations, packages online, exotic tour operators, cruiseship packages, adult industry travel like swinger cruises, timeshare companies, international travel destinations, bookings and airline ticket industry, new hotels and motels.
iPayTotal have a full set of solutions created exclusively to be adapted to your specific needs, we count with important information that able us to set up reliable merchant accounts, this let us control the chargebacks, and have a right managing risk. iPayTotal is the best and larger Payment Processing Solution for travel Business and high risk businesses in general, we attend all the travel marketplace, hotel chains, and so more. iPayTotal integrates innovative technology, PCI compliance, EMV readiness, outstanding IT features and electronic payment knowledge, understanding the difficulties faced by travel providers. We offer a basic 4 features set of solutions for travel businesses:
Accept payments, operate transactions and pay providers with one basic service
Integrate with major travel distribution frameworks
Encourage customer confidence and increase bookings
Acknowledge payments over multiple distribution channels and manage incoming funds and supplier payments with our network of global bank accounts
TRAVEL AGENCY PAYMENT SOLUTIONS
Nowadays is greater the number of people using travel agents to have vacations annually, and is expected that this number grows each year. This has increases the need for travel agency merchant account services. Customers from travel businesses should be able to pay using their credit or debit card, and by doing this, clients feel more security, making an expensive purchase, protecting them, but if some issue is present during the vacation company can offer them security, and this is only feasible having the appropriate merchant processing services that will work for both, businesses owners and customers, and due to the travel businesses is a high risk tagged industry it is not easy to find a wide list of solutions to be able to accept credit card payments.
We at iPayTotal know that there exist different travel businesses, and in consequence each travel businesses need to have different business models, adapted to its specific requirements and each one requires a bespoke approach. At iPayTotal our clients receives a tailored list of services to meet the specific needs of their specific businesses. To summarize our offer, with iPayTotal you will access to a complete platform adapted to your needs, so this way you will increase your profits in global markets and your customer experience will be carefully cared, assuring you a profit increase.
What are chargeback costs and its consequences to travel agency merchant accounts?
Chargebacks are fees which appears when a client dispute a charge to their debit or credit card, once this happens company it is forced to refund the purchase and initiate a tedious process where have to prove the valid of the charge itself. Once this process ends, it is necessary to collect all the data around the transaction, and maybe you will can recover the money. It is not from the side of customer to provide the evidence of authentication, approval and authorization of the purchase.
Business aren’t cheap. For this reason, every service you use or every product you purchase, has an associated processing, set-up, or management fee. That’s why merchant accounts has stipulations regard to the chargebacks fees, no matters if the chargeback it is valid or not. Furthermore, there are extra penalties of the chargebacks itself. So, for multiple chargebacks, the fees could be increased, or have more and more penalties for those chargebacks, and the worst is when the bank decides terminate your account. But nowadays, banks ultimately want to keep their customers satisfied, so this causes that opposite the chargeback costs should be passed to the customer making the claim, there are passed to the merchant.
If you receive a lot of chargebacks, you suffer the danger to lose your privileges to process certain card brands, being tagged as “too high risk.” You can mitigate your chargeback costs assessing your sales and transactions.
Why do travel agencies need a merchant account for travel business?
Travel agencies needs help to go across the industry’s newest payment card acceptance, risk mitigation and chargeback management procedures. Payment Processing Solution for Travel Agents enables businesses to expand the payment acceptance options and increase it sales giving you a lot of resources for customers who nowadays prefer a wide variety of payment methods.
This feature will help your travel business in different ways:
Develop best practices mindset
Spread your payment acceptance procedures
The handling and collecting of credit card information
Take informed decisions about payment methods
Managing the associated risk of fraud
Respond effectively to and manage chargebacks
Tips in getting Travel Agency Merchant Accounts
It is highly recommended that merchants do a previous research among merchant accounts service providers before select one, so they will can have a better knowledge and understanding of the products, services and rates existing in the market. And there are some factors to consider for this: the experience of the provider in handling and operating accounts in this industry sector. The travel businesses payment processing company needs to have multi-currency included in the service provided, ensuring that it businesses can sell their services to clients globally.
- ORGANIZE THE FINANCIAL RECORDS OF THE BUSINESS
The financial records represents the transactions of the travel business and these includes a so much information related to the company and it is highly recommended to keep them organized as a key element for a successful business.
There are 4 basic steps to keep your financial record organized: Digitize paper records, know where to find copies, Protect desktop records, Start in the cloud, end in the cloud. The basic info to be organized when applying for a Payment Processing Solution for Travel Agents is listed below:
Statements of retained earnings.
Income statements and the company’s balance sheet.
The resume of the business owner.
The copy of personal utility bill.
Business overview or marketing plan.
Bank statements from the past 90 days.
The company profile.
Articles of Incorporation.
- TALK TO THE AGENT
Travel agents with a considerable knowledge are able to help a lot in discussing the possible merchant account services solutions applicable to a specific provider and get the best high risk management and be able to maintain a reliable Payment Processing Solution for Travel Agents.
- READ THE FINE PRINT
In travel businesses you only can have success if you are an astute negotiator, well versed in navigating world travel, and an expert at finding alluring agreements. There are a lot of travel professionals who work remotely from home while others seek employees without a reliable backrest which support it. For people who loves to travel a lot, it is a very good option to become in a travel agent because they can visit so much destinations at a discounted rate. Before to schedule the trips, you have to be 100% secure about all the legal conditions that will attach you to it. Considering all the time the chargebacks, and having in mind that you must be able to maintain the good standing of the payment solution.
- Consider Refunds
If you have a lot of chargebacks, even if there are some successful, you need to consider that this is still affecting your chargeback ratio and this could cause the closure of your account. It is highly recommendable that chargebacks be below 1%.
It is worthily advised to avoid the chargeback fight and pass the refund to a customer who asks for it. Furthermore, some customers could apply for a different trip instead of take a refund or start a fight for chargeback. The best option for you is avoid the chargeback and make an agreement with your customer.
The high cost of chargebacks to credit card processors
Chargebacks mean something else than a lost sale, a client’s regret or some unreturned merchandise. Once a chargeback is happened, it true cost is significantly higher than the issue which caused it. Chargebacks involves these costs or fees: Transaction fees, Operational costs, Marketing and acquisition costs, Chargeback fees.
Always are present extra fees, costs of stock, store, shipment of the order, and so many others expenses in the way, and that’s only for one chargeback. So, imagine then if those chargebacks keep increasing continuously, the costs will grow too. And this represents a very high risk because merchants have to face considerable financial loss in front of the payment processing company. This could drive a primitive high risk for any unpaid chargebacks, this happens when customers claim their credit card charges, and this is responsibility of their sponsor banks.
How to fight chargeback in a merchant account for travel business
To fight a chargeback you have to know how to take a huge advantage over the fraudsters and this way protect your business, to do this, it is mandatory to build a chargeback representment case, having in mind these factors: answer speed, proactivity, knowing of the facts, knowing of the reason code, communication. Once you have decided to fight the chargeback, it’s very important to understand what you’re getting into, you should know how to rush into the dispute process being fully prepared for it, and taking care of the costs, time and resources that you should use. For this you will need to have a quick access to important information to build your case regard to the disputed purchase, so, you have to mandatory includes refund/return policy details, cardholder details, receipts, delivery information, product/service descriptions and proof of authorization, so this way you can fight chargebacks and win in a record time.
iPayTotal is the best choice to assessing travel business individually, we make a carefully analysis of your methods and we can board you with the acquirer that fit to your needs and requirements,