A travel merchant account with TailoredPay helps travel agencies and tour operators get predictable payouts, no shutdowns, better chargeback ratios and higher approval rates.
What is a travel agency 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 travel merchant services.
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 and needs dedicated travel payment processing. 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
If you belong to any of these groups, you’ll need reliable payment solutions that accept travel agency accounts. The problem is, traditional merchants such as Stripe won’t readily process payments for the travel industry.
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.
This is why dedicated payment solutions such as TailoredPay exist: to provide a reliable travel merchant account and help you accept credit card payments with ease.
Secure your payment processing today.
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 for travel agencies 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 merchant account provider 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.
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 processing 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 today.
| 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 |
Frequently asked questions
Why is the travel sector considered a high risk industry for payments?
The travel sector is often labeled a high risk industry because of high ticket transactions, advance bookings, and a higher chance of refunds or disputes. Customers usually pay weeks or months before receiving the service, which increases chargeback exposure if plans change. Banks also factor in fraud risk and past bankruptcies when assessing travel businesses.
Can a travel merchant account handle high ticket transactions?
Yes. A dedicated travel merchant account is built to support high ticket transactions without sudden freezes or payout delays. Unlike general payment providers, travel focused processors take good care of high risk accounts and underwrite your business properly from the start, which helps keep credit card processing stable even for large booking amounts.
What payment types can I accept with a travel merchant account?
Travel merchant accounts support credit card processing, mobile payments, and local payment methods depending on your target markets. This allows you to accept payments online, over the phone, in person, and across different regions using a single payment platform.
How does secure processing work for travel businesses?
Secure processing includes encrypted transactions, fraud screening, and chargeback monitoring tailored to travel use cases. These controls help reduce unauthorized bookings and disputes while keeping approval rates high. A specialized provider focuses on protecting travel merchants rather than applying generic risk rules.
Can I integrate a travel merchant account with my existing payment platform?
Yes. Most travel merchant accounts integrate with popular gateways and booking systems, making it easy to connect your existing payment platform. This setup supports global sales, local payment methods, and mobile payments while keeping reporting and settlements predictable.
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