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    Looking for Travel Merchant Account Solutions?

    Although the tourism industry is completely legal and includes thousands of companies with impressive turnover, it belongs to the high-risk category. It has its own specifics, which causes problems when opening merchant accounts. For example, travel agencies are often faced with the fact that their customers do not pay for their tickets, cancel bookings, or request a chargeback. Because of this, payment providers can suffer reputational and financial losses, so they are reluctant to work with travel businesses. However, travel companies can still open a merchant account. SegoPAY offers the opening of special merchant accounts for travel agencies, considering all risks.

    Features of companies operating in the tourism industry

    The tourism industry is considered high risk due to the fact that they are highly dependent on customer decisions. Having a lot of time before the trip, the client may change plans and request reservation cancellation – this is a very common case in the travel industry. Such situations make the travel business subject to the need for a high-risk travel merchant account.

    Many travel bookings can be considered void in the event of a dispute. In particular, most payments are made on a “card-not-present” basis by phone or via the Internet, which increases the risk of fraud.

    In addition, the tourism industry is characterized by high checks: most often, booking hotels and air tickets costs from $1,000 or more. This is also a red flag for banks because of chargebacks for huge amounts.

    Why do travel companies need a merchant account?

    A merchant account allows you to accept payments from bank cards and electronic wallets. An important advantage for travel companies is that a merchant account allows them to accept payments from around the world. In addition, the merchant account for timeshare is available 24/7. Customers can pay for goods and services on any convenient day, including weekends and holidays. Companies receive funds as quickly and reliably as possible and can quickly make bookings for their clients.

    Risk factors for companies

    Why are travel agencies even considered high-risk? In fact, travel companies face significant risks both when interacting with banks and directly when working with clients. They are the following:

    • Refusal to open bank accounts. Many banks are not ready to cooperate with high-risk companies, including companies from the tourism industry.
    • Account blocking and additional requirements. Banks may require additional documents and confirmation of transactions.
    • Possible fraud. Since most clients pay for their bookings online or by phone, they do not present their cards, and this is a huge opportunity for fraudulent schemes.
    • Chargeback risks. In the tourism industry, chargebacks often occur, and cases of such fraudulent activities are also not uncommon.

    Due to the high risks of travel companies, they are often subject to higher requirements and worse conditions. For example, we are talking about higher commissions or limits.

    SegoPAY is a profitable and reliable solution for travel companies

    SegoPAY offers merchant services for travel agents that operate in the travel industry. Using our services, you can open a timeshare merchant account without additional conditions or any difficulties. We offer affordable transaction fees and low account maintenance fees. We also offer low limits, making SegoPAY suitable even for companies that are just starting out and do not have a reputation in the market. In addition, SegoPAY provides a secure payment gateway that complies with PCI DSS standards.