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Most travel agents and tour agencies spend a majority of their time trying to understand the needs of their customers. That clarity allows them to use their specialized knowledge about travel options to create a strategic travel plan that aligns with the budget and needs of their customers.
SMB Global works in a similar manner. We understand that the travel industry is classified as the dreaded “high risk” category and payment solutions are hard to come by. Travel agencies must take payments in advance, which opens them up to high chargeback ratios and other payment disputes. You may not be able to control changes in travel plans and unforeseen cancellations, but you can control who you choose to help you navigate your payments.
To start, the travel industry is labeled “high risk” because a majority of travel-related transactions occur long before the delivery of the actual product or services – the excursion or vacation itself.
This manner of accepting payments lends itself to frequent chargebacks and disputes on payments, another no-no when it comes to working with banks. Banks and lenders are also nervous about large-group payments, high amounts of transactions run simultaneously, or big ticket items like custom vacation packages.
For many travel businesses that clear these hurdles, they now find themselves in a new pickle – they aren’t able to process all their transactions. Many banks limit the monthly processing volume for high risk industries and worse yet, hold their funds if they surpass their allotted limits.
Although many business owners may not run a travel agency, payment processors may still classify them as high risk due to their affiliation with travel or the manner with which they accept payments. Here’s a list of industries that face similar hurdles in getting a merchant account:
The businesses in the travel industry that are most likely to get approved are those that have been proven to be responsible, ethical, and maintain a strong financial history.
Bank underwriters typically try to determine the risk for a business by looking at credit scores, credit card processing history, bank statements, and websites. Your approval odds improve dramatically if you’ve avoided negative bank account balances, outstanding bills, and high chargeback ratios.
If you want to ensure that your travel business is approved for the maximum processing volumes with little to no rolling reserve, it’s important to prove that you have money in the bank, a squeaky clean credit history, and no debt.
For travel businesses with a clean processing history, SMB can get you approved for the volume you need to keep your business running.
If your business is established in the travel industry, avoid the hassle and inconvenience of rolling reserves and keep 100% of the volume you process.
Don’t let other high risk processors take advantage of your lack of options. SMB Global guarantees the fairest, most transparent rates in the industry.
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