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Travel Merchant Account

Travel businesses searching for a merchant account will quickly realize it is a daunting task. Travel businesses are categorized as high risk mainly for the conditions that the services are sold under. The tickets are usually for accommodations, travel packages and airfare. All of these services are considered high risk since after the date of the travel arrangement; the purchase has no more value. If a merchant is selling a product online, the customer’s card is charged, the product is sent with a tracking number and the recipient, customer signs for the package. If the customer wants to return the product, they can send it back and the merchant will be able to refund and resell the product. Only shipping and processing fees are lost to the merchant which are normally nominal.

When a travel purchase is made there are several high risk factors that add to the risk of the transaction. The purchases are usually made well in advance of the travel date. This gives more time for buyer remorse. The services are usually non refundable which becomes a problem when the customer is requesting a refund and unable to receive one. The chargeback period for cards is six months. If a customer; books the travel services, uses it and something was not as they imagined it would be they have six months to chargeback. Lastly, the ticket price is high. Put all of these factors together and you have the recipe for a high risk business. Most banks will not want to deal with this type of business.

Travel merchants have to search for a bank and processor that will accept these types of accounts. Many merchants will need to provide payment processors with signed agreements from their customers when the merchants process large transactions. This provides protection to the merchant and the processor to fight possible chargebacks. Most merchants will not need to provide documentation for each transaction. In the beginning the processor will most likely only require documentation for large transactions and after a few months of processing they will not request any information unless there is a retrieval request or chargeback.

It is risky for merchants to begin processing transactions with a payment processor that is not aware of what the merchant is actually selling or is not a true high risk merchant processor. Some agents may mask the real business intentions when going for an approval. The agent is in no way harmed, the account is setup by the low risk processor and they receive their bonus however the processor will shut down and hold all merchant funds once the processor finds out what the real business is, usually with the first chargeback. Don’t put your business in this position. Contact a true high risk merchant account provider and see what they are able to offer you and your business. Offshore Merchants provides approvals usually in 7 days and with their domestic high risk accounts, payouts are made every day to their merchant’s bank account.

Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.