Travel industry trends are always changing in accord with new opportunities brought about by the modern world of technology. The world of travel and hospitality has entered a new era of growth and transformation. Global business travel spending accounted for $1.2 trillion in 2015, which is up 5% from 2014.
Travel and Hospitality Industry
One of the most important issues to note while talking about the travel industry is the high risk nature of agencies operating in the field. Travel agencies are labeled as high risk since consumers usually dispute and charge back travel agency transactions than most others. In this regard, travel agencies can be compared to businesses dealing with adult products, escort and companion services, fortune tellers, diet programs with guaranteed results and sports forecasting or odds making.
That’s why it can be rather difficult for travel agencies to set up a merchant account for payment processing. This is especially true of new travel agencies since the majority of credit card processors want to see a prior credit card processing history that will prove the applicant can manage risk properly.
Getting a Merchant Account for Your Travel Agency
For travel agencies, it’s critical to turn to a reputable payment processor like emerchantbroker.com to open a secure and low-cost airline merchant account for their business. EMB has years of experience in the high risk sector and has helped thousands of hard-to-approve merchants, including travel merchants, get a reliable high risk merchant account without difficulty.
EMB is voted the #1 high risk processor in the US, and has an A+ rating with the BBB and an A rating with Card Payment Options. Moreover, EMB is named one of the Fastest Growing Companies of 2016. EMB offers unmatched chargeback protection and prevention services to merchants to help them grow their business and increase revenue.
Important for New and Established Travel Agencies
Before applying for an airline merchant account, it’s important to understand the potential sales agent liability concerning selling air fares online. This will help you mitigate risks and protect your agency from losses brought about by chargebacks stemming from customer disputes and fraudulent transactions.
Risks can be minimized through card acceptance policies and procedures that will help you with the following:
- Authorization request that is approved by an issuer, thus showing that the credit card account is in good standing.
- Financial liabilities associated with fraud-related transactions are mostly transferred by the airline to the given travel agency.
When applying for a merchant account for your travel agency, choose a merchant services provider that is experienced in working with travel agencies and other high risk merchants. The right processor will be proactive in helping you prevent fraud and reduce chargebacks.