Hotels Try to Fight Booking Websites

Jul 23, 2015

We have seen the commercials and online ads for booking websites. These websites promise to book your hotel room, rental car, and airplane ticket for a fraction of the original fee. While most of these sites are legit, and there are few problems with consumers, the hotel and airline industries hate these sites. They cost them money, as people are booking not through their websites, but through websites that take from their cost, and discount their rates. It is perfectly legal, but many hotels, and Delta Airlines, are fighting these websites.

Delta Airlines is the first to say “no” to these booking websites. While this probably will not Delta’s bottom line, it does look greedy to the average consumer. Perhaps it is, as booking websites are becoming more and more popular. Hotels are jumping aboard, as well, but this may end up hurting hotels more so than it would an airline. Most of the hotels featured in booking packages are bigger name hotels – Marriot and Hilton, for example – but others are smaller, non-chain hotels that can greatly benefit from these websites. While it may take from your overall cash flow, it does garner more business.

Ultimately, it is your business, and if you wish to not be featured on booking websites, it is your right. However, you do need to do your research before withdrawing your hotel’s information. Check over your last few months, or even years, to see where your business has come from. Has it come from telephone reservations, walk-ins, through your website, or through booking sites? The numbers may surprise you, and may cause you to re-think your stance on the industry. In addition, you need to be sure to consult with your hotel merchant account processor. If you had a recent chargeback, check as to where it originated. If the costly charge came from a booking website, this could be enough to steer you away from using it. If not, you should carefully think about the pros and cons of using these websites. Be careful of any changes you make, as you want to make the best changes for your business.

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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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