Using a Credit Card to Pay Off a Timeshare

Sep 18, 2017

The timeshare industry is tabbed as high risk. Timeshare businesses are also called “vacation owner programs.” They are associated with organizing time for different people to use the property throughout the year. Owners agree to pay certain fees on a yearly basis to maintain the property. As a rule, properties are divided among 25 owners at 2 weeks each; 2 weeks a year are left for maintenance and repairs.

Timeshare Industry

Modern owners are looking for more flexibility in their vacation choices. Today, companies often offer timeshare exchange programs at a fee.

It’s interesting to note that in the US, timeshares sales made up $7.9 billion in 2014. In 2015, vacation timeshares sales in the US accounted for $8.6 billion.

In 2015, the average timeshare purchase in the US cost more than $22 thousand, which has been the highest average for the past 5 years. This cost doesn’t include the yearly maintenance fee, which reached $880 in 2014, up from $731 4 years previously.

Credit Card Processing for Timeshare Businesses

If you’re involved with timeshares, securing a merchant account tailored to your needs can be challenging from traditional banks because of risks associated with your high risk business and legal exposure. Fortunately, a reputable payment processor like can get you a low-cost and reliable timeshare merchant account with ease. EMB, the #1 high risk merchant account provider in the US, boasts an A+ rating with the BBB and an A rating with Card Payment Options.

There are cases when timeshare owners owe some money to the owner of the given timeshare and would like to pay it off with a credit card, then pay that credit card off right away and get some perks for doing that.

Let’s consider the timeshare is owned through, e.g. Marriott. As a rule, they don’t accept credit cards for large payments, including rent and mortgage payments. The rewards you receive are paid for by the payment recipients in the form of credit card merchant fees, which can represent 2-4% of the payment. This is an amount that not many companies are willing to part with for large payments they are owed.

On the other hand, if they agree to accept credit cards, they’ll charge a processing fee, which will be a percentage of the amount owed. Be aware these fees usually equal or exceed the value of the credit card rewards you expect to earn.

These fees will make sense if you qualify for a unique promotion. E.g., many travel-related cards offer status elite qualifying miles when customers reach a certain annual threshold.

In the best-case scenario, your credit card will be accepted without any fees. In this case, you’d better put off these charged on a rewards card, so long as you have the amount to pay off your balance in full and on time. Make sure to pay the day after your statement closes so to get almost 2 months of free float before the payment is due.

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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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