Are You Looking for Travel Merchant Account Solutions?
The travel industry has been categorized as high risk due to the way that debit and credit card transactions are processed. When unexpected issues arise that may cause the person to not redeem their ticket, reservations, or the product and or service purchased and a refund is requested, this common factor is what categorizes the travel merchant accounts as high risk.
When there is a greater lapse in time for the customer to consider canceling their travel or booking plans, the chances of a chargeback for these customers can be higher as a result. These kinds of scenarios are what also makes the business more likely to need a high-risk merchant account.
Many of the reservations purchased for travel occur as card-not-present. This means that the debit or credit card was given over the phone, through a virtual terminal or used to book online (eCommerce). Card-Not-Present transactions make it difficult to prevent fraud, which in turn creates the probability of excessive credit card chargebacks.
Businesses that apply for a travel merchant account classify their services of buying tickets and booking travel as a “High-Ticket Sales,” meaning that the price tag is usually higher. This type of business platform is a red flag for acquiring banks. The only thing worse than chargebacks are high priced chargebacks. Keep in mind that banks calculate risk based on the several potential factors like: what if chargebacks occur? What if the customers of that company request a lot of refunds?
Did Your Existing Credit Card Processor Shut Down Your Travel Merchant Account?
Let’s say that Someone books a trip through your business. The bill comes to $968, which the bank considers to be a high-ticket size. You send the client an invoice via mail or email. The customer then pays this invoice with a debit or credit card, typically online or over the phone, making this payment a card-not-present transaction.
Because you are using a travel merchant account, you will get that $968 from the customer. However, if the charge made is disputed by the customer or reported as a fraudulent charge and that customer wins the dispute, the merchant processing company is required to refund the customer.
When the bank goes to take the funds from your bank account, if there are not enough funds in your business account to cover the refund, the merchant account processing company is then responsible for paying the customer the refunded amount.
Why Does this Matter and How Can Double Helix Processing Help with my Travel Merchant Account?
When you apply for a travel merchant account and the underwriters for the acquiring bank and merchant processing company are determining whether your business is one that has a high likelihood of excessive high-ticket amount chargebacks then this is what classifies your business as a high-risk merchant. As a merchant in need of a high-risk credit card processor and bank, they will have to obtain a high-risk credit merchant account with a reputable company like ours. After all, Double Helix Processing is the best in the industry when it comes to high risk merchant accounts.
How Does Being High Risk affect your Travel Merchant Account?
The two most important factors for businesses with a high-risk travel merchant account status are:
If your business is placed in the high-risk category, you are more than likely going to have a much more involved underwriting process. You will be required to come up with tax returns, corporate filing paperwork, several months (sometimes up to a year) of bank statements and processing history.
You can also expect higher than normal fees. This includes but is not limited to higher fees per transaction, higher fees for monthly statements, and a larger than normal cash reserve to ensure the processing bank that they are covered in the occurrence of potential chargebacks and or refunds or even a possible reserve.
Keep in mind that the above only applies if a bank decides to approve you, which most will not, and it can be incredibly difficult to find a reliable processing partner. You don’t have to go through the run around of finding and applying with several banks only to get declined — Double Helix Processing makes getting approved for an airline booking merchant account simple. Just fill out our simple, online Merchant Account Application to get started.
Why Should You Choose Double Helix Processing?
We understand the unique needs of the different Travel related business types and have established numerous acquiring banking relationships to become your best resource in getting Travel merchant accounts set up and accepting online payments. Our expertise is your ticket to getting the stable processing you need to further your business.