Travel Biz: Chargeback Headaches

Travelers Opting to Chargeback When Their Refund Request Fall’s On Deaf Ears

Traverler Chargebacks

Credit-cards, also known as plastic currency, have become a modern mode of trade. People use it more often in order to have a record of payments made. Credit cards are also being used by the travelers to avoid disputes. Whatever the reason be, travelers are turning to this option to resolve their issues with car rental companies, airlines, hotels prompting credit-cards disputes. Due to this reason, travelers consider the chargeback option.

Chargebacks are on the verge of rising when it comes to traveling sector. A chargeback in simple words is the withdrawal of funds that were previously deposited in the merchant’s bank account and applying for credit back to the credit card or account. You may also call it a reversal of your charges. The use of credit cards is also in the favor of the consumers because of the fact that all the payment can be refunded.

Take the example of Edward Margolis, an Indianapolis Financial Consultant who canceled his plans to fly from Tel Avis to Las Vegas earlier this year. The airline agent assured him that he is very likely to receive a refund since he has canceled his ticket within 24 hours. When he didn’t receive, he contacted his credit card company to reverse the payment. Under the Fair Billing Act, you can dispute a charge for goods or services you didn’t accept or that were not delivered to you on the agreed date and time. If the bank has your back, the money is refunded instantly.

The chargeback rate of the travel industry is more than double as compared to the average of other industries. Travel also has the highest value disputes. An average dispute costs $18 and the next highest category is the department stores averaging $8.

Your chances of succeeding in a travel related dispute are better than average. The industry-wide success rate for merchants is 41 percent. But since you don’t have to swipe your card for travel sector but make the charge by phone or online; your chances of winning are better. Banks tend to favor the customers in case of disagreement when a card isn’t physically present.

According to the banks, chances of fraud are higher when it comes to the travel sector. Companies offering travel packages and hotel booking services can be dispute free for all. However, having a strong case helps. Chargebacks are usually thought of as a last resort. Filing a chargeback without proper justification falls under the definition of fraud and sometimes, it is also termed as a friendly fraud.

The timing for filing for the chargeback is important in the case of dispute. You would not want to file a dispute too early as it could lower your chances of winning and disrupt your tour.

Contact us to discuss a better way to handle travel club merchant account chargeback issue’s and reduce your potential chargeback liability.

High Risk Merchant Account LLC
915 Folly Road, Suite 49
Charleston, SC 29412
1-877 493-4622
https://hrma-llc.com

High Risk Ach Processing

Getting a High Risk ACH Processing Account

High Risk ACH Processing

One of the most tedious and sometimes painful processes in starting any business is often figuring out how you’re going to process payments, in particular cashless transactions like credit ad debit cards. There’s a lot of red tape to cut through, and sometimes the paper work can be a bit overwhelming. This is especially true for businesses that have been deemed high risk, either by the ACH provider or even by various laws. The laws and regulations aren’t just federal but also tend to vary from state to state, so this makes for even more headaches when trying to comply so  you can be approved for an ACH processing merchant’s account. Being deemed high risk doesn’t merely make it hard to be approved, but also it often makes it more expensive. You’ll probably see higher rates and  more fees if you’ve been deemed high risk. Look into Getting a high risk ACH processing account.

What determines if you are high risk as an individual business though? It’s usually as simple as having the wrong kind of business type. There are many types of business both old and new that can carry this label, and these also tend to vary. A lot of risky financial businesses can include payday lenders and even collection agencies, especially collection agencies requiring a system to debit phone payments and have them processed the next business day. This can also apply to a lot of new business types such as electronic cigarette outlets and hookah dealers. The business type is not the only factor that determines this, however. It can also be the size of your average transactions, for example if you’re customers make an average payment that can go as high as $1,200 or even higher, then you will once again be deemed high risk.

Being in a high risk industry can tend to be difficult and even overwhelming when it comes to this process, and can even seem like a death sentence to some business owners. However, it is not the end of the world. If you decide to stand alone you will have a very hard time and can expect to pay a lot of high fees. There are however, services that can help you through the process. Not only can they help you get through the paperwork and follow all of the proper regulations to get approved but they can even utilize various industry connections to get you lower rates. So when you’re acquiring your high risk ACH processing account consider utilizing some of  these opportunities. No one is too good to need help, and this is no exception. Through the investment you can save time, money, and a lot  of  future headaches.

Contact Us:

High Risk Merchant Account LLC
915 Folly Road, Suite 49
Charleston, SC 29412
1-877 493-4622
https://hrma-llc.com