Posted by admin on Sep 02, 2013


travel industry payment processing,

Travel Industry Payment Processing

More than 50% of all travel reservations are now made online. Travel and hospitality is the world's largest industry.  The World Travel and Tourism Council  predicts sales revenues in excess of US$15 trillion by 2017.

All types of travel merchants need processing to accept payments from customers.  Merchant accounts can be provided to all segments of the travel industry including: transportation, hotel reservations; timeshare, membership clubs, vacation certificates; newsletters; travel agencies; tour operators and packages.

Risks in Processing for Travel Merchants

Travel merchants are considered high risk accounts.  Statistically, high risk merchants have a higher incidence of chargebacks and fraudulent transactions.

Travel merchant accounts are susceptible to chargebacks for a number of reasons.  Travel is an emotional purchase, combining the excitement of new adventure with the fear spending a lot of money for an unknown outcome.

The degree of emotionalism involved in purchasing travel makes it difficult to avoid a certain percentage of unhappy customers.  Regardless of how good the service was, customers will always find a way to complain that it wasn’t what they expected.

In additional, a certain percentage of travelers know how to “work the system” in what is known in the industry as “friendly fraud”.  Travellers can initiate a chargeback against a company for endless numbers of reason including that the experience was not delivered as advertised.   And online travelers can simply assert that the transaction was not authorized.

Other risk elements of travel merchant accounts include high average tickets and extended delivery dates.  Travel and tour packages can run to thousands of dollars.  It doesn’t take too many high ticket revokes to negatively skew travel merchant accounts chargeback ratios.

Travel is also booked far in advance.  The longer the time between booking and travel, the more time there is for consumers to change their mind and seek refunds.  If refunds are not immediately delivered, lots of consumers know how to play the system and initiate chargeback proceedings against the merchant.

Travel Merchant Accounts Available through World-Wide Network

Despite the risks, travel companies are desirable merchants to many banks.   Large online travel merchants process millions of dollars per month in transactions.  Therefore the potential of profits help offset the risk in processing.

Travel merchant accounts are available through an international network of acquiring banks.  Card processing and alternative payments to increase sales are available on one platform.

Get More Sales by Offering Alternative Payments

By their very nature, travel merchants need to handle international payments.  Of course, accepting credit cards is important.

Buyers from the US and UK likely to book online travel using credit cards. But, in other parts of the world, credit cards are not commonly used.

Local payment options favored by buyers will increase orders.  The most commonly used alternative payments are local bank transfers .  With local bank transfers, funds are electronically transferred from the travelers’ bank account to the merchants’ bank account.

Bank transfers are less expensive than credit card transactions, reducing merchant payment processing fees.  Another advantage of local bank transfers is that once the transaction is complete, there are no chargebacks.  Bank transfers are “cleared transaction” and function much like a cash payment.


The travel industry is booming.  

To maximize sales and profits, reliable travel merchant accounts are needed. Accept payments online.  Or take phone, mail and fax orders.  

Card payments are popular in many countries.  And and becoming more common throughout the world.

Yet adding alternative payment options such as echecks and bank transfers are also important to get sales from travelers that don't have cards, are maxed out on cards, or simply prefer to pay you with an alternative payment method.

Are you seeking a travel merchant account for your business?  

Contact today.