Air Travel Merchant Account and Credit Card Processing Risks

Aug 28, 2017

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 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:

  1. Authorization request that is approved by an issuer, thus showing that the credit card account is in good standing.
  2. 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.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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