Fraud and Security Risks In The Hotel Industry. Can Tokenization Protect Your Hotel Business?

Mar 18, 2016

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.

Let us help you get hotel credit card processing 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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