Travel Merchant Account

 

The travel industry is one of the biggest of them all, incorporating all kinds of businesses, from actual travel agencies that help to organize flights and vacations for people to ticket sellers, cruise companies, hospitality businesses in the travel sector, travel clubs, travel sites, tour operators, and more.

These kinds of businesses are all in high demand, as countless people love to travel all over the globe. So, there’s a lot of money to be made if you’re running a travel business, catering to the needs of travelers and helping them enjoy the best travel experiences far and wide. However, setting up and running a successful travel business can be a challenge.

For example, you’ll need to have a travel merchant account in order to run a travel business. However, applying for a travel merchant account and getting approved for travel merchant accounts can be challenging. Many businesses find themselves getting rejected and denied for travel merchant accounts, but Shark Processing can help. Read on for all you need to know.

The High Risk Travel Industry

Nowadays, it’s easier than ever for travelers to head online and make use of online travel businesses to book flights, cruises, hotels, and travel activities of all kinds before jetting off across the globe. These kinds of experiences can be enriching, educational, and exciting in a lot of different ways, and travel businesses exist to make those experiences possible.

However, as mentioned above, running a travel business isn’t always easy, because there’s a lot of risk associated with the travel industry. The high risk credit card processing involved in many travel transactions can make it really difficult for travel companies, especially new start-ups and small travel businesses, to get their own travel merchant accounts and actually carry out their business operations.

What Is a Travel Merchant Account?

Before looking at some of the risks and challenges of the travel industry, let’s first focus on what is a travel merchant account with a simple travel merchant account definition. In basic terms, a travel merchant account is a type of business account designed to make it possible for a travel business to receive digital credit and debit card payments.

A merchant account is needed for any kind of business that sells goods and services online and has to deal with card-not-present transactions (i.e. when someone buys a flight ticket via a travel website, rather than at a brick and mortar travel agency). It works to facilitate these kinds of electronic payment card transactions, keeping them safe and secure, and you can’t run an online business without one.

These types of merchant accounts are really important in the travel industry, because these days, most travel-related purchases are done online; many travel businesses operate via websites, allowing users to buy and book travel-related services, such as flight tickets, hotel stays, and activities from the comfort of their own homes.

Difficulties Obtaining Travel Merchant Accounts

It’s clear to see that travel merchant accounts are of serious importance for any travel online business. However, getting a travel merchant account isn’t as easy as simply contacting your usual bank and applying for one. In many cases, banks will refuse to offer travel merchant accounts to travel businesses, and there are situations in which banks and payment processors will cancel accounts or hold payments that are connected with travel businesses.

Why? Well, it’s all to do with risk. Banks don’t like giving merchant accounts to businesses they believe to be “high risk” or associated with high risk payment processing. Unfortunately, travel businesses are often deemed to be high risk businesses, due to a range of factors, and this can make it a lot harder than you might expect to get your own travel merchant accounts and start doing business.

So why is travel considered a high risk industry? Well, there are a few reasons. Firstly, the costs involved. Typically, costs of travel are quite high. People can spend hundreds or thousands on a typical trip, including flight fees, accommodation, tours, and so on. When so much money is involved, there’s a relatively high risk that something may go wrong and a traveler could try to commit some sort of fraud or charge back their transactions.

There’s also the fact that travel purchases are usually made a long time in advance; travelers often book flights and reserve hotels weeks or months ahead of time. Therefore, they have more time to potentially regret and cancel those purchases or be forced to change/cancel them due to changing circumstances. All of this means that the travel industry is associated with a high rate of chargebacks, causing losses and chaos for banks.

Applying For A Travel Merchant Account

So, if the banks and usual payment processors will refuse to give you a travel merchant account due to high risk payment processing and fears of chargebacks, what can you actually do to get a merchant account for travel? Well, that’s where Shark Processing comes into play; we can help you get your own travel merchant account more easily.

Shark Processing is an industry leader in the field of merchant accounts for high risk businesses. We specifically aim to help those in high risk industries who are often refused and rejected by many banks and payment processors. So, if you’re sick and tired of having to deal with hesitant banks and denial letters, we can make everything better.

We offer high risk travel merchant accounts with highly competitive rates, minimal fees, fast approval times, and friendly customer support, too. With our years of experience and trusted network of banks and payment partners, we’re sure to be able to help you. Contact our team to find out more about our travel merchant accounts and what we can do for you.