Things Travel Agencies Should Know About Credit Card Processing

Many credit card processors are reluctant to offer merchant account services to travel agencies owing to their high risk nature. This is because historical data reveals that consumers are more likely to dispute and charge back on travel agency transactions than many others.

As a consequence new travelling agencies are finding it extremely difficult to set up a high risk merchant account. To make it easier for you, mentioned below are things you should know about credit card processing:

1.    Understand Risk

Before you apply for a merchant account it is important that you first understand the potential liabilities of a sales agent, associated with selling online air fares. Understanding your exposure to possible risks will help you take adequate steps to minimize them and protect your travel agency from losses.  

2.    Set Up Card Acceptance Policies And Procedures

Setting up card acceptance policies and procedures will help you address the following issues:

·         An authorization request approved by an issuer indicates that the credit card account is in good shape.

·         Your organization may not be a MasterCard or Visa merchant, which is subjec to the rules and regulations of Credit Card Associations. However, airline is a MasterCard and Visa merchant and is subjected to all these rules and regulations.

3.    Experience Matters

Make sure you choose an established and experienced payment processor who has in the past worked with travel agencies and other high risk businesses. Also, your processor must be capable of assisting you in developing and implementing fraud prevention measures during the processing cycle.