The travel sector is – almost by definition – global. According to our research, over 30 percent of reservations made on airlines websites come from outside their own country and 17 percent of bookings from outside their home continent. iPayToTal provides a variety of merchant Account Solutions for Travel Agency. The services include credit card processing, ACH and eCheck processing. We have domestic and offshore merchant accounts.
The complexity necessary to accept payments from around the globe is enormous: there are close to 300 distinct procedures of payment around the globe and international airlines manage over 20 different payment providers. There are indications from innovating in payments that it frees travel companies. We offer integrated access to over 25 distinct procedures of payment so traveling companies can process payments from around the globe with a single integration and one view of their payment transaction information. Travel Merchant Accounts or Merchant Account Solution for Travel Agency play a very important role in the travel industry.
The vast majority of online booking tools fall under one of two models: they’re either an online travel agency (OTA) or a fare aggregator. The difference is subtle but important. OTAs work much like traditional brick-and-mortar travel agents, consolidating the trip planning and booking process into a single, online experience. Their offering typically skews towards niche markets, demographics, or geographies (yoga retreats or specialty cruises, for example).
Fare aggregators, on the other hand, take a broader approach pulling travel resources not only from hotels, airlines, and car rental services but also from OTAs themselves. When a customer books a service from an OTA through an aggregator, the agency provides the aggregator with a referral fee before fulfilling the request themselves—otherwise, booking platforms of either model will pay the chosen travel service provider directly.
High Risk Merchant Account Solution for Travel Agency
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How innovation in Travel Merchant Accounts and Payment solutions change the shape of the travel industry?
The new study, which conducted 78 interviews with payments supervisors from hotels, airlines and travel agents, emphasizes the growing urge to innovate in payments. Over 95% of interviewed companies plan to introduce new payments innovations in the future, with planning of over 14% of many new innovations’. Factors like meeting customer requirements were cited as a driving innovation, with the continued concentrate on providing a personalized customer encounter a payments aim. Despite this bright prospect traveling payments, supervisors emphasized significant complexity as a crucial obstacle to innovation today, with 85% of companies confirming a rise in the number of accepted payments procedures within the last five decades.
The average number of methods accepted by respondents is with companies have added an average of 3 new methods over the last few decades. Similarly, the majority of travel companies work with between 3-10 distinct providers of payments solutions, increasing operational complexity further. The study also found that traveling companies spend on average 5.3percent of their revenue on managing payments, including obtaining fees, prices to all suppliers along with other indirect costs. That equates to a gigantic $74.5 billion across the industry as a whole. Smaller firms pay disproportionately high fees, with people earning under $15m averaging 7.5percent of revenue.
This compares to only 3.8 percent for traveling firms earning $1 billion in annual revenue. Electronic payments are becoming more popular among travel companies, yet not much has been reported about the nuances of the fad. E payments help increase cash flow, improve security, and reduced prices. However, they come with their very own pitfalls, like large prices, the risk of fraud, and conflict with local tastes for cash payments in emerging markets.
Despite this bright prospect travel payments managers highlighted significant complexity as a key barrier to innovation today, with 85% of companies confirming an increase in the number of accepted payment methods over the last five years. Travel merchant accounts play an important role in deciding the companies growth. The average number of methods accepted by respondents is nine, with companies, have added an average of three new methods over the past several years. Similarly, the vast majority of travel companies (over 80%) work with between 3-10 different suppliers of payments services, increasing operational complexity still further.
Issues faced by Travel Merchant Account Providers
Moving money across borders is an issue for any global business, but this is especially true for travel platforms that deal with multiple currencies. Not surprisingly, early platforms in the space relied on wires to distribute payments to providers. But as we all know, wires can be costly and inefficient; as such, it didn’t take long for the market to shift to a more modern payment mechanism: virtual credit cards. Platforms could simply send a virtual card loaded with the appropriate payout to the property or tour operator, who would then key it into a merchant terminal in order to receive settlement in two days (or less). Merchant account for travel agents must have the capability to support multiple payouts options.
Travel companies are also looking hard at how to implement the Strong Customer Authentication requirement. This is especially a challenge in the travel industry where, in many cases, travel agencies pass payment details through to suppliers who are the ultimate merchant of record. iPayToTal Payments is working with payment schemes such as Visa and Mastercard to ensure that 3D Secure can apply to the use case where the traveler purchases from a travel agent but the travel supplier is the merchant of record. In addition, iPayToTal Payments plays an active role in a travel industry-working group designed to ensure that SCA recognizes travel-specific B2B payments between consumers/ corporate travelers, travel agencies/management companies and travel suppliers. Travel merchant accounts must have the fraud-fighting support and chargeback mitigation procedures well established.
While a lot has been done to improve payment infrastructure in the online travel sector, new payout platform solutions are helping to further reduce administrative hassle and costly merchant fees. This is done through the use of a wallet payout model, wherein a travel merchant account can transfer funds to a single, virtual balance, rather than a virtual card. From there, the recipient (the host or travel provider) can see their available funds and self-select the way in which they’d preferred to collect them.
Through our travel merchant account, we provide fully integrated access to over 25 different methods of payment so travel companies can process payments from around the world with a single technical integration and a single view of their payment transaction data. We also have a consultancy team comprised of experts with a deep understanding of the global payment market. This travel merchant account team sits side-by-side with our customers and helps them build an effective global payments strategy.
Credit cards are a significant part of the payments ecosystem in travel and we believe they will continue to be, especially in markets where they already have a strong presence. In these markets, even when new payment methods are launched, there is often a card payment behind. Our travel merchant account can help you accept all major credit cards. Our Merchant Account Solution for Travel Agency will make your travel business more successful.
Can iPayToTal provide Merchant Account Solution for Travel Agency?
Yes, at iPayTotal, we are expert in providing merchant Account Solution for Travel Agency. As financial services experts, we are familiar with the travel industry’s unique system and diversity of categories, business models, NAIC and SIC and VISA MCC codes. We underwrite our merchants before forwarding their applications to our sponsor bank.
Once new merchants build credibility and trust with iPayTotal banking partners, they get personalized attention and risk management from iPayTotal’s team of payment expert. This personalized service, combined with the sheer volume of transactions we process through multiple banks, guarantees our merchants get the highest level of service and support.
Choosing the right merchant Account Solution for Travel Agency is critical, since without the capacity to acknowledge payments, merchants are out of business. iPayToTal’s merchant onboarding process combines complex technology with human oversight. Experienced underwriters who understand the travel service industry, and have ability in payment card brand and banking industry compliance, bring a refreshingly comprehensiveapproach to new account set-ups.
Why Choose iPayToTal
Here at iPayTotal, we offer a Merchant Account Solution for Travel Agency with an integrated solution for all your payment processing needs. We help you take payments, manage transactions and the associated risk as well as having a direct relationship with the acquirer to sort out any queries that can arise from time to time in your travel merchant account. We also can provide market-leading information and knowledge to help support and enable the merchant to make decisions on growth and direction through our continual learning programme. We guaranty quick real-time credit card processing, top-notch services and at reasonable rates. Give us a call at +44 800 776 5988 or get in touch with us through our website.
With integrated reconciliation, reporting and management information systems you can accept payments across multiple channels and manage your incoming funds with the potential to work with 391 global banks, making you a truly local international business and giving you the best travel merchant account.