Payment Processing Solution for Travel Agents
25 Oct

By ipaytotal

Category: best high risk merchant account provider, Chargebacks, high risk merchant account instant approval uk, high risk merchant account solutions, Merchant services for travel agents, Payment Processing Solution for Travel Agents, Travel Agency Merchant Accounts, travel merchant account

Sustainable Payment Processing Solutions for Travel Agents Comments Off

Sustainable Payment Processing Solutions for Travel Agents

Travel Agency Merchant Accounts

Travel Agency Merchant Accounts

According to Deloitte, a global survey company, the travel industry gross bookings reached $1.6 trillion in 2017, which makes it as one of the largest and fastest growing sectors in the world that accounts for a whopping 10.2% of the gross domestic product worldwide. It can be expected that travel agencies will have no problem in securing Payment Processing Solution for Travel Agents but it is not easy for travel agencies to get travel agency payment processing because travel business is considered as high risk. It is surprising because most people associate “high risk” credit card processing with sinful industries like gambling, firearms, and tobacco.

Owning a successful travel agency means providing ease of use across the board. Your clients trust you with planning a once in a lifetime vacation to far away destinations across the globe. It’s just as essential to provide modern and secure payment processing to your clientele as it is to ensure their every wish is met accommodation wise.But not only this type of industries fall under the “high risk” category, but even travel agencies also fall under this type because of its excessive chargebacks.

Once a business is categorized as “high risk” it can be difficult for them to get a Payment Processing Solution or a travel merchant account . Many merchant account providers refuse to approve a merchant account for high risk businesses or if they do, higher rates and fees are charged and are given not so fair contract terms as well as vulnerability so sudden account closure. iPayToTal provides a variety of payment processing Solution to travel agents and other high risk businesses.



In the ever-changing world of travel and hospitality, finding the right merchant partner offering unique payment solutions is essential for success. At iPayTotal , we recognize the need to provide a travel merchant account that is flexible and convenient. Our commitment to providing our travel agency customers with an advanced payment gateway accepting multiple methods of payment, means they experience more consistent cash flow, high customer satisfaction, and increased market share.

iPayTotal has established relationships with multiple esteemed banks, and our network will provide your agency with reliable and secure payment acceptance solutions no matter where in the world your customer base lies. All of our payment solutions are tailored to your organizational needs, requirements, and goals. We are here to make running your business easier and help create a payment process that is streamlined and innovative.

Why travel businesses are considered high-risk?

The main reason why travel businesses are considered high risk is all due to high rate of chargeback caused by the fact that most transactions of travel agencies are placed and are paid in advance long before the delivery of the service to the customer. Unfortunately, a customer may have unexpected situations and may decide to cancel the booked trip. Since it is common for travel agencies to require deposits and impose a no-refund policy the customer may just opt to file a chargeback with the card company.

iPayToTal provides the best Payment Processing Solution for Travel Agents

Generally speaking we have solutions for most travel agencies businesses include vacation packages online, exotic tour operators, cruiseship packages, adult industry travel like swinger cruises, timeshare companies, international travel destinations, bookings and airline ticket industry, new hotels and motels.

Gain access to fraud and chargeback teams who are experts in providing Best Payment Processing Solution to Travel Agents, travel marketplace, hotel chains, and more. One of the largest travel industry payment providers, iPayToTal’s team of industry specialists brings extensive integration, PCI compliance, EMV readiness, and electronic payment knowledge, and comprehends the difficulties faced by travel providers.

  • Accept payments, operate transactions and pay providers with one basic service
  • Integrate with major travel distribution frameworks
  • Encourage customer confidence and increase bookings
  • Acknowledge payments over multiple distribution channels and manage incoming funds and supplier payments with our network of global bank accounts


Travel businesses such as travel agency, tour operators, cruise business, or other travel company are all labeled as high-risk and this affects their ability to get a merchant account for travel business. Although it is not easy high risk travel business can still secure travel industry payment processing solutions to be able to accept credit card payments.

Every one of our travel agency clients receives:

  • Reasonable and Transparent Rates – We aim to keep our rates competitive for all our offered services. We know you have an abundance of choices for your payment processing. Our goal is not only to provide you with an advanced and stable support network, but to do at a realistic price.
  • Multi-Currency Processing – We understand your need to accept different forms of currency depending on where your client is based. Reach international customers and make them feel comfortable by allowing for payment of services in their local currency. Depending on your qualifications, you may have the ability to accept payments in multiple currencies, such as US dollars, British pounds, Euros and more.
  • Prompt Account Setup – Most travel agencies are in need of payment processing now. We ensure to get you approved quickly and account online fast. Our proprietary payment platform is also able to be fully integrated with most software platforms, meaning you have a seamless solution from start to finish.

What are chargeback costs and its consequences to travel agency merchant accounts?

  • For every chargeback filed by a customer, the merchant has to pay a corresponding fee. Even for cases where the customer cancels the chargeback after it was filed, the merchant still has to pay a fee which is usually the administrative cost that is associated with the process.
  • There will be a loss of revenue if the customer availed the travel service for the first few days then canceling it later for some reason that the services rendered did not fit their expectations.
  • If the travel agency payment processing has a predetermined threshold for monthly chargeback rates, excessive fines can be levied against the travel business. Worst case to happen is for the termination of the travel agency merchant account by the acquiring back especially for chargeback rates that are way above the acceptable threshold. In this case, the travel business will be unable to accept credit cards as payment and thus will lead to the loss of potential sales for customers who opt to pay by the card.
  • Moreover, once a travel agency has a terminated merchant account for travel business, it will be listed and will be reflected in the business record, This will affect future application with different processors.

Chargeback even a single one can be dangerous for business and may put a threat to the business’s longevity and sustainability by destroying your travel merchant account and lessening your chances to get a Payment Processing Solution for Travel Agents.

Why do travel agencies need a merchant account for travel business?

Getting the Payment Processing Solution for Travel Agents is of utmost importance for travel agencies and businesses that will enable the business to accept card payments (debit and/or credit card) thru online, in-store and even over the phone. Travel agency merchant accounts provider helps the business in expanding the business payment acceptance option that can potentially increase sales because customers nowadays prefer a variety of payment methods.

Tips in getting Travel Agency Merchant Accounts


The merchant must first do research among travel agency merchant accounts provider before applying. It is necessary to get a better understanding of the services and rates offered.

  • The provider must have experience in handling and operating accounts within the travel industry.
  • A multi-currency travel agency payment processing must be included in the service to be provided. This ensures that the business can sell their services to customers overseas.


Simultaneously, the financial records of the business must be prepared and organized. Some of the basic paper works that need to be submitted when applying for a Payment Processing Solution for Travel Agents are:
For sole proprietors,

  • The resume of the business owner.
  • The copy of personal utility bill.
  • Proof on being a sole proprietor.
  • Business overview or marketing plan.
  • Bank statements from the past 90 days.

For companies,

  • The company profile.
  • Articles of Incorporation.
  • Business bank statements from the past 90 days.

Other important documents to provide are:

  • Company’s processing history over the last 90 days (if applicable) including the amount and volume of transaction, refunds, and chargebacks


Knowledgeable agents can be very helpful in discussing the possible merchant account services solutions that can be provided by the provider and get the best high risk handling and sustainable Payment Processing Solution for Travel Agents.


One can never be too careful when it comes to legally binding contracts or agreements. It is advisable that the merchant agreement must be understood by the merchant before signing. Double checking must also be done to make sure that there no hidden fees, no extra costs or no clause that could possibly change the agreed-upon conditions. A lawyer can also be hired to help the merchant with the legal language in the merchant account contract to be able to help avoid potential problems in the future.

Chargebacks must be kept low for merchants to be able to maintain their Payment Processing Solution for Travel Agents in good standing. Although facing chargebacks in business is unavoidable there are steps that can be undertaken to limit it.

5. Consider Refunds

One thing to keep in mind is that even if you win a chargeback, it still counts toward your chargeback ratio. If you get too many chargebacks, even successful ones, your processor can shut down your account. A rough rule of thumb is that chargebacks should be below 1%.

In some cases, it may be worth it to skip the chargeback fight and issue a refund to a customer who asks. Alternately, some customers may be willing to apply a deposit to a different trip rather than take a refund or initiate a chargeback. Bottom line, if you can work with your customer to avoid a chargeback, that’s a good route to take.

The high cost of chargebacks to credit card processors

Risk is determined based on the potential financial loss to a credit card processor or its sponsor bank. Chargebacks that don’t get reimbursed by a merchant are primarily what drive risk. Any unpaid chargebacks, which occur when customers dispute credit card charges, become the responsibility of processors or their sponsor banks.

Additionally, credit card processors may be subject to thousands of dollars in financial penalties for each merchant account when high-risk merchants maintain excessive chargeback ratios. Whenever a business exceeds a 2% chargeback ratio, credit card companies can fine the processor that provided the travel merchant account.

When the ratios remain high, processors have no choice but to terminate their high-risk merchant accounts. To avoiding put their accounts in jeopardy, merchants must work to keep their transactions volumes high and do whatever possible to avoid chargebacks.

How to fight chargeback in a merchant account for travel business

Merchants in the travel industry are hit with so many chargebacks for a number of different reasons, including high average ticket prices. Most services related to travel often cost at least a few hundred dollars.

Since most customers pre-pay for tickets, tours, and other arrangements before they go on trips or use services, travel merchants are considered higher risk. Finally, many travel businesses end up failing. When businesses shut down suddenly, they don’t refund the cost for services and tickets that were pre-paid by customers.

1. A clear payment policy must be clearly communicated and implemented to customers. This must be shown in the website and in-store brochures and must state the requirements for deposits and full payment as well as the time frames for both full and partial refunds as well as deposit condition. Cancellation and refund policies must not be in small print.
2. Give the customer an option for a refund than initiate a chargeback. The customers must be informed of the refund policy of the business.
3. Collaborate with a chargeback management company that helps businesses in managing their chargebacks.

iPayTotal Approach

We, at iPayTotal, assess each travel agency individually, we learn and analyze your method of doing business so we can board you with the acquirer that would feel most comfortable with your business model. This is the means by which we can give a reliable travel merchant account and a Payment Processing Solution for Travel Agents. Just by tuning in to your prerequisites.

The procedure is very simple, however, requires some documentation to the bank, to verify your information. An iPayTotal merchant expert will guide you at each step to guarantee quick approval.

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