Merchant accounts for travel businesses
Are you a travel business looking to expand and maximize your profits? If so, having a travel merchant account is essential. A travel merchant account gives you the flexibility and security to take customer payments quickly and securely.
However, because the travel industry is considered high risk by most banks and payment processors, getting a travel merchant account can be tricky. In this article, we’ll discuss travel merchant accounts, why they are essential for travel businesses, and how you can find the right one to meet your needs.
What is a travel merchant account?
A travel merchant account is a type of bank account that enables travel businesses to accept payment cards and electronic payments.
In short, travel merchant accounts are high risk merchant accounts for travel businesses. Travel merchant accounts make it easy for customers to book travel expenses such as flights, hotels, car rentals and more. Businesses with a travel merchant account can accept payment online, over the phone, or in person. Customers can pay by credit card, debit card, or electronic payment.
What businesses need a travel merchant account?
Businesses operating in the travel industry and wanting to accept electronic payments generally need a travel merchant account. But how do you know if your business is officially a “travel” business? Your merchant category code (MCC) will often determine if your business is a “travel” business. For example, lodging businesses have MCCs in the 3500-3999 range.
Additionally, common travel businesses include:
- Airlines
- Cruise lines
- Hotels
- Car rental companies
- Travel agents
- Ticket sales
- Timeshares
- Booking sites
Travel merchant accounts challenges
Many banks consider travel businesses to be high risk because of:
- Chargeback and fraud risk. The risk of chargebacks and payment fraud increases the travel industry’s risk profile.
- High transaction amounts. Travel is expensive, making travel-related purchases an attractive target for fraudsters.
- Prepaid expenses. Travel businesses often require customers to purchase services in advance, making it difficult to cancel or refund if they don’t receive what they have paid for or if their plans change.
- Bankruptcy. The travel industry has a history of bankruptcies, which makes banks hesitant to take on travel business accounts and can result in high account fees.
Because banks view the industry as high risk, travel businesses often face higher merchant account fees. In other cases, their merchant account applications are simply rejected.
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How to get out of bad travel merchant account contracts
Sometimes travel merchants get stuck with bad merchant account contracts. What makes a merchant account “bad” varies, but common examples include:
- High fees
- Terms that constrain your business
- Poor customer service
- No chargeback mitigation
Fortunately, there’s still hope if you are stuck in a bad contract. Some potential ways to get out of a bad contract include:
- Paying an early termination fee– You can often pay a fee to exit your contract.
- Finding a reason for a free exit– There are several reasons you may be able to end a contract early. In some states, there is up to a three month period after a rate hike where you can exit.
- Work with the processor– Sometimes, your existing processor will let you out of the contract even if there is no legal obligation to do so.
For a deeper dive on these tips, check out our How to get out of a merchant services contract article.
How a travel merchant account with TailoredPay can help protect your business
As the travel industry continues to innovate by offering travelers new ways to explore, businesses in the sector need to remain competitive. Reliable, secure payment processing solutions are necessary to do so, and that’s why TailoredPay exists.
At TailoredPay, we understand the unique needs and risks of the travel industry. That’s why our travel merchant accounts are designed with your specific needs in mind. With TailoredPay, you can rest assured that your business is protected, allowing you to focus on growing your reach and maximizing profits.
Want to see how much you can save with TailoredPay? Check out our interactive savings calculator!
TailoredPay specializes in providing travel merchant accounts with unbeatable protection against fraud and chargebacks. Our team of experts is well-versed in best practices for travel businesses, and we take great care to ensure your account is secure.
| TailoredPay |
|---|
| Digital application process |
| Approvals within 48-72 hours |
| No setup fees |
| Wide range of industries accepted |
| Focus on high-risk merchants |
| Chargeback prevention system |
| Traditional Providers |
|---|
| Digital application process |
| Approvals within 48-72 hours |
| No setup fees |
| Wide range of industries accepted |
| Focus on high-risk merchants |
| Chargeback prevention system |
We provide travel merchant accounts with:
- Secure payment processing. TailoredPay offers cutting-edge security and encryption for online payments to help protect your business from fraudulent activity and chargebacks. Learn how our chargeback mitigation tools give you more control over your business.
- Payment flexibility. We offer seamless platform integration with multiple payment gateways, allowing you to choose the one that’s right for you. Our global network of processing partners gives you the freedom to accept payments from customers around the world.
- Competitive rates and fees. Our travel merchant accounts are customized to meet your needs and come with no hidden fees, so you can stay on top of your finances and focus on growing your business.
- Expert customer support. You’ll have access to our dedicated team of experts to answer any questions or concerns you may have.
Sign up for a secure travel merchant account with TailoredPay to take advantage of our unbeatable protection against fraud and chargebacks. If you have questions about travel merchant accounts, contact our team of experts to learn more about how TailoredPay can help protect your travel business.
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