Getting a Jet Charter Merchant Account
Virtually all kinds of businesses have to rely on online payments and reservations in order to process debit and credit card payments. So, getting a merchant account becomes a necessity. Unfortunately, while there are a lot of businesses in the charted flight industry, banks and payment processors don’t like to take a chance and approve charter jet merchant accounts. The reason is simple: jet charter industry is considered high risk.
Why is Chartered Flight Industry and Jet Charter Merchants Considered High Risk?
Private airline and jet merchant offer specialty air transportation or flying services with no regular schedules and regular routes. These on-the-the-fly services can make them vulnerable to chargebacks. The flexible billing practices, the risk of travel cancellations, and high-ticket values are some of the key reasons why charted flight industry is considered high risk.
It is not uncommon for an individual to book and pay for a flight, and then, change their mind or plan, and ultimately cancel the flight within the allowable period of time. While the customers are free to do this, it results in a chargeback to the jet charter merchant. Furthermore, banks and most financial institutions avoid issuing a jet charter merchant account because they don’t like advanced scheduling, online reservations, and irregular billing schedule of the industry.
How to Get a Jet Charter Merchant Account?
Since banks and traditional financial institutions tend to avoid the chartered flight industry because of the fact that it is considered high-risk, it is recommended that you find a high-risk merchant account provider. Such payment processors accept businesses in the high-risk category and they are also easy to work with. To get started, you will need to find a high-risk payment processor that is willing to work with chartered flight industry, visit their website, and then initiate the application process by filling out the relevant form.
Apart from the application, you might need to provide the following documents/details:
A valid, government-issued ID, e.g. a passport or driver’s license.
A working, secure website.
A preprinted voided check or a bank letter.
EIN (Employer Identification Number) or SSN (Social Security Number).
Three months of most recent processing statements and bank statements.
Keep your chargeback ratio below 2%.
How to Improve Your Chances of Getting Approved?
The quickest way to get approved for a jet charter merchant account is to operate a responsible, legal business. Underwriters assess businesses to determine their risk of processors. Websites, bank statements, credit card processing history, and credit scores are factors that help assess risk. All these factors are evaluated to ensure that the merchant doesn’t have a history of excessive chargebacks, outstanding bills, and negative bank account balances. Following are some tips that will help you improve your chances of getting approved:
– Pay any outstanding debts and bills.
– Have some money saved in the bank.
– When applying for a merchant account, encourage the business principal with the best credit history.
Just because your chartered flight business is considered high-risk by banks and payment processors, it doesn’t mean you cannot obtain a merchant account. You simply need to do your research and find a high-risk merchant account provider. Then follow the above-listed guidelines to fly through the underwriting process and you are all set.
Merchant Services For Charter Jet Industry
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About The Author
Mark Sands, co-founder of High Risk Merchant Account LLC, an authoritative expert in the high-risk merchant account space. Mark has decades of experience in the payment industry & enjoys writing on entrepreneurial related topics.