Travel agencies, and other related travel industry businesses, are considered high-risk from a credit card processing standpoint. This fact makes it next to impossible to obtain a merchant account from banks and most payment processing companies. However, a merchant account is needed in order to provide customers with the ability to pay for goods and services with a credit card. Credit cards are the preferred payment choice for most consumers, particularly for big-ticket items.
Fortunately, there are a few merchant account providers, like Payment Savvy, that offer a solution to this unfortunate situation. A high-risk travel merchant account provides the travel industry with the ability to accept credit card payments. In order to offset some of the financial risk, high-risk travel merchant accounts typically have higher fees than standard merchant accounts. A quality payment processing specialist, like Payment Savvy, will make certain that the fees are only slightly higher than their standard merchant account offerings in your to help your bottom line.
How to Make High-Risk Merchant Accounts Work for Your Business
High-risk merchant accounts are supposed to help your business grow, instead of stunting that growth. Although the fees may be slightly higher, high-risk travel merchant accounts offer a few advantages over standard merchant accounts. For example, there are fewer restrictions on earning potential. Standard merchant accounts typically have limits regarding the amount of credit card transactions than can be processed per month. They decide upon the limit amount on a case-by-case basis.
Imagine if your business was limited in the amount of credit card transactions it could accept each month? What happens if the company is in a growth phase that outpaces the limit restrictions? The good news is that you do not need to worry about that problem with a high-risk travel merchant account. There are no limits of that nature. In addition, standard merchant accounts typically cap individual purchase amounts to $500 or less. That simply does not work for industries that sell big-ticket items that sell for over $500.
High-risk travel merchant accounts do not incorporate the use of purchase price caps. As long as the consumer has enough credit to make the purchase, they may do so without restrictions. Another tremendous advantage of a high-risk travel merchant account is the chargeback factor. When a standard merchant account suffers from a high amount of chargebacks, the account can be terminated with little to no notice. That leaves the business without the ability to process credit cards until a resolution is put into place.
When organizations lose their ability to process credit cards, for any extended period of time, it leads to significant loss of revenue. High-risk travel merchant account providers expect chargebacks due to the nature of the travel industry as outlined in part one of this article. It takes more than a few chargebacks for a provider to terminate the account. However, chargebacks are not good for any business. It also means that the sale is lost. Responsible business owners and operators take measures in order to avoid them.
A high level of customer service, sending out thank you emails after the purchase, and following up with customers to answer questions & concerns goes a long way in keeping that hard-earned sale.
Payment Savvy specializes in providing clients with creative and efficient methods of doing business. Please contact Payment Savvy today for answers to your questions, to review all of your options, or to apply for a high-risk travel merchant account. We look forward to hearing from you and working with your company.
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