High-Risk merchants are companies with a higher risk of chargebacks, fraud, and returns. Here is what you need to know about high-risk merchant accounts and how they can help your travel agency.
Merchants in the travel industry often have an increased risk of chargebacks due to the nature of their work. A chargeback occurs when a customer disputes a credit card transaction by contacting the credit card company or their issuing bank.
What Is A High-Risk Merchant Account?
High-risk merchant accounts are designed for businesses in certain industries that have an increased risk of chargebacks. This includes companies such as travel agencies, airlines, rental car offices, and hotels.
The reason these types of companies have a higher fraud and return risk is that they often deal with cash transactions or products that are time-sensitive.
A high-risk merchant account is an agreement between the company and their bank that allows them to process credit transactions. If a customer disputes a transaction with their credit card, the bank will cover the cost instead of the business.
Why Does My Travel Agency Need One?
If your travel agency doesn’t have a high-risk merchant account, they are at risk of not being able to process transactions. This is because of the increased risk that comes with the industry. For example, if someone books a plane ticket and never takes it, or if someone charges a plane ticket for another person and then tries to get reimbursed, it could result in a chargeback.
We recommend investing in a high-risk merchant account for your travel agency to help protect against these types of chargebacks. If you do have one, this will allow you to easily process transactions without any problems.
Is Your Travel Agency At Risk For Chargebacks?
A high-risk Merchant Account Help High risk payment gateway is necessary for any company that falls into the high risk category. If your business experiences a higher than average amount of chargebacks or other fraud, it’s likely that you will have classified as a high-risk merchant.
Chargebacks can prove to be expensive and damaging to your travel agency. The average chargeback fee is $25 per transaction, which could lead to a significant loss in revenue if you don’t have a high-risk merchant account.
You need to protect yourself from these costly losses by getting a high-risk merchant account through an industry. This will allow you to accept credit card payments without risking chargebacks or fraud.
How Can A High-Risk Merchant Account Help Travel Agencies?
A high-risk merchant account can help your travel agency in a few ways. First, it provides the necessary protection for your business in the event of a chargeback.
In some cases, credit card companies may waive certain costs incurred by the merchant if the customer is found to be at fault for the transaction being disputed. This protects your company from costly disputes that could go unresolved.
Second, these accounts can help your travel agency build its reputation and generate more sales. Having a high-risk merchant account will help you improve your creditworthiness and therefore make it easier to gain access to credit and loans. Strong credit history also makes you more appealing to potential customers who are looking for a reputable business partner.