Getting A Merchant Account For Travel Business
If you are looking forward to start a new tour operator business, implementing a mechanism to collect customer payments would be one of the challenges that you have to deal with. You will have to think about accepting credit and debit card payments from the customers. Otherwise, you will find it as a difficult task to continue with your business. That’s where you would get the need to obtain a travel merchant account.
Obtaining a travel merchant account, especially for your new tour operator business would be a challenging thing to do. That’s mainly because most of the merchant providers are concerned about the high risk associated with the travel and tourism industry. In fact, there is a higher risk of chargebacks in this industry and merchant providers don’t tend to assist small scale tour operator businesses as a result of it.
If you have already made plans to start the tour operator business, you shouldn’t feel down because there are some alternative methods available for you to obtain the travel merchant account that you want. It is true that travel and tourism industry is being considered as a high risk industry by the merchants, but it doesn’t mean that you will be kept away from getting a merchant account.
One of the best methods available for you to get a merchant account would be to apply directly. The merchant providers have made it possible for the small scale business owners to come and submit their applications directly. When you are applying, you will be asked to provide information in order to access and analyze the risk associated with your business. When this is done, your application would be approved or rejected. If the application is approved, some terms and conditions would be placed in order to improve the security. For example, you will be asked to place a security deposit that is equal to a defined percentage of the peak turnover. Or else, you will have to go for personal guarantees or rolling reserves.
If you don’t prefer to apply for a merchant account on your own, you can think about directing your application via an approved trust account. The trust accounts have implemented several measures to provide enhanced protection to their consumers. If your tour operator business fails to deal with the risk that merchant providers have to face, you will be covered by the protection offered through trust accounts.
It has been identified that the merchant providers prefer to deal with tour operators who apply through a trust account. That’s mainly because it can eliminate the risk associated with making the funds of consumers non-refundable, during a failure. If you go ahead with trust accounts, additional securities such as bonds and personal guarantees are needed as well. This is considered as an additional form of security that the small scale business owners will be able to experience. As a result, this method is associated with a high rate of success.
Contact Us: If you are experiencing difficulty in getting approved a travel merchant account. We can help.
High Risk Merchant Account LLC
915 Folly Road, Suite 49
Charleston, SC 29412