Merchants involved in the hotel industry know it can be challenging to obtain a travel merchant account. Even large hotel brands are labeled as “high risk.” Traditional banks, worried about risk and legal exposure, try to stay away from high-risk businesses.
Data Breaches in the Hotel Industry
The hotel sector has experienced well-publicized data breaches in recent years. Particularly, Hilton Worldwide, Mandarin Oriental Hotel Group, and Starwood Hotels have suffered customer credit/debit card information breaches in the last 3 years.
The same refers also to White Lodging Services Corporation, a franchise operator for many Hilton, Holiday Inn, Marriott, Sheraton, and Westin hotel locations.
These were high-profile data breaches, but, in fact, they weren’t that much hotel specific. Fraudsters targeted the POS or infiltrated point of sale systems at the hotel bars, gift shops, and restaurants. So these systems were the source of the resulting credit card fraud.
Merchants involved in the hotel industry should turn to a trusted payment processor in the field so to secure their business. No matter you’re a tour guide company or a travel agency, EMB can get you a highly reliable travel merchant account without challenges.
Should the Hotel Sector Be Labeled As “High Risk?”
Based on reports, 38% of all credit card fraud comes from the hospitality sector: POS hacks are reported as the most notable examples. So a cash register outside the lobby can be taken as a hotel’s most vulnerable area in this concern.
With EMB, hotel business owners can open a travel merchant account suitable for their specific needs. EMB, # 1 high risk payment processor in the United States, provides cost-effective rates combined with no-fee application process.
All you need is providing the proper documentation and signing the agreement. Your business will get an operational merchant account in as little as 3 days.
Hotels are extremely vulnerable to credit card fraud and other forms of financial crime for a number of reasons. These reasons are unique to the hotel industry. However, weaknesses specific to the hospitality sector do not turn out to be well publicized.