What Makes a Travel Merchant High Risk?

What makes a travel merchant high risk?

Travel environments are unique; transactions are usually keyed in. There’s almost always a delayed delivery period, and large ticket transactions.

One card holder may be paying for multiple tickets and they tend to be seasonal; with peak season months generating an unusual spike in their “average” monthly volume and chargebacks, pose a potential threat by travelers who are unable to complete their trip.

These factors can cause for a reserve, or even account termination. That’s why travel merchant accounts are considered high risk.

Most merchants do not realize that merchant processors carry a financial risk on merchant accounts, and normally fund merchants prior to receiving payment from the client’s bank.

Essentially, a merchant account is an unsecured loan. The merchant runs a transaction and at the end of the day they settle their batch.

Generally, the merchant will receive the funds for that batch in their bank account within 2 business days even though the travel arrangements the client paid for do not take place right away.

Here at National Transaction Corp, we specialize in understanding what makes your transactions as a travel agent unique; in how they affect your merchant account.

Educating the merchant and ensuring they have a good understanding of what makes travel merchant account high risk, is one of our specialties.

Call NTC to speak with a Travel Merchant Account Specialist today!

NTC the Travel Experts! 888-996-2273

Posted in Best Practices for Merchants, Travel Agency Agents

What Makes a Travel Merchant High Risk?

What makes your travel merchant account high risk?

Travel environments are unique and transactions are usually keyed in. There’s almost always a delayed delivery period, and large ticket transactions.

One card holder may be paying for multiple tickets and they tend to be seasonal; with peak season months generating an unusual spike in their “average” monthly volume and chargebacks, pose a potential threat by travelers who are unable to complete their trip.

These factors can cause for either a reserve or account termination. Therefore travel merchant accounts are considered high risk.

Most merchants do not realize that merchant processors carry a financial risk on merchant accounts, and normally fund merchants prior to receiving payment from the client’s bank. Therefore, a merchant account is an unsecured loan.

The merchant runs a transaction and at the end of the day they settle their batch.  The merchant will receive the funds for that batch in their bank account within 2 business days, even though the travel arrangements the client paid for do not take place right away.

Here at National Transaction Corp, we specialize in understanding what makes your transactions as a travel agent unique and how they affect your merchant account.

Educating the merchant and ensuring they have a good understanding of what makes travel merchant account high risk, is one of our specialties.

Call NTC to speak with a Travel Merchant Account Specialist today!

Dial 888-996-2273

Posted in Best Practices for Merchants, Travel Agency Agents Tagged with: bank, card, chargebacks, financial, loan, merchant, payment, processors, transactions, travel, travel agent, Travel Merchant

Travel Cost Management Program by MasterCard

MasterCard is releasing a new program for its corporate clients that allows them to closely monitor and control their travel expenses online. The program, known as Travel Controller, lets businesses track all of their individual travel accounts under one system, giving owners a chance to reduce those travel expenses.

Typically, travel and entertainment is the second-largest controllable expense after salaries and benefits, and yet companies worldwide are overwhelmed with huge amounts of travel spend data requiring expense reconciliation said, head of travel and entertainment at MasterCard. “With minimal upfront investment and systems integration, Travel Controller gives companies the opportunity to remedy this pain point.

This program is somewhat an extension of the Smart Data service that MasterCard launched in July. This program lets company treasurers analyze business-wide spending by assessing big data from all employees.

MasterCard’s Travel Controller is not scheduled to be on the market until early 2014, but it is currently being used as a pilot at a select group of banks. With this program, business owners can gain a better understanding of how their travel expenses are being spent. If an employee is spending more than the amount dictated by the company’s travel policy, the Travel Controller will show that information.

Posted in Credit card Processing, Travel Agency Agents, Visa MasterCard American Express Tagged with: accounts, benefits, control, corporate, entertainment, expenses, investment, market, MasterCard, online, pilot, reconcilliation, remedy, salaries, systems integration, travel, travel controller, upfront

What Makes Your Travel Merchant Account High Risk?

This is a question we encounter on a daily basis. Travel environments are unique in that your transactions are usually keyed, there is almost always a delayed delivery period, large ticket transactions are not uncommon since one cardholder may be paying for multiple tickets, they tend to be seasonal, with peak season months generating an unusual spike in their “average” monthly volume, and chargeback’s pose a potential threat by travelers who are unable to complete their trip. Combine even a few of these factors together and you have cause for a reserve, or even account termination.

Being a part of a MO/TO (Mail Order/Telephone Order) or Keyed environment carries an increased risk of potential fraud or unauthorized use of a credit card. Since the credit card and cardholder are not present at the time of the transaction, the merchant has a limited ability to ensure the card is not being misused or that the proper AVS (address Verification Service) information is provided. NTC stresses the use of Credit Card authorization forms in order to obtain the correct credit card number, expiration date, billing address, and signature of the cardholder.

Travel merchants tend to have periods of increased volume based on peak travel seasons, whereas most other industries tend to have the same average monthly volume every month. This can generate spikes in volume on the merchant account that can trigger security concerns with the processor. Helping the merchant to analyze their volume trends and reporting the trends to the underwriters helps eliminate the security concerns when these spikes occur.

Large transactions which exceed the average sale amount for the merchant account can also trigger security concerns. Merchants who do not inform their merchant processor of large transactions prior to charging the credit cards can trigger security concerns and cause funding delays and reserve holds. Educating and clearly communicating with the merchant how to handle large tickets, volume spikes, and group bookings, prevents reserves, funding delays and/or other merchant account issues.

Another concern from the underwriters is the delayed delivery time frame. Delayed Delivery refers to the amount of time between accepting a credit card payment (whether a deposit or full purchase) and the time the cardholder travels. The client’s credit card is billed and the travel agent is paid however, the trip the travel agent was paid for doesn’t generally take place for 2 to 3 months. This leaves a lot of time for things to change, and should the client not travel for some reason, the first thing they do if the travel agent does not issue a refund, is claim a chargeback. NTC offers quite a few tips that can help protect the travel agent from chargeback situations.

Most merchants do not realize that merchant processors carry a financial risk on merchant accounts, and normally fund merchants prior to receiving payment from the client’s bank. Essentially, a merchant account is an unsecured loan. The merchant runs a transaction and at the end of the day they settle their batch. Generally the merchant will receive the funds for that batch in their bank account within 2 business days even though the travel arrangements the client paid for do not take place right away.

Here at National Transaction Corp, we specialize in understanding what makes your transactions, as a travel agent, unique in how they affect your merchant account. Educating the merchant and ensuring they have a good understanding of what makes travel merchant account high risk, is one of our specialties. We have established a special relationship with our underwriting department which facilitates our ability to approve your high risk travel merchant account.

Contact your travel merchant account specialists at NTC today.

Mark Fravel
National Transaction Corp
Founder and President
888-996-2273

Posted in Best Practices for Merchants, Travel Agency Agents Tagged with: address verification service, avs, card holder, card payment, chargeback, credit card, Mail Order/Telephone Order, merchant, merchant account, merchant processor, moto, transactions, travel agent, Travel environments, travel merchants

Understanding Credit Card Processing Risks for Travel Agencies

Merchant Account Risks for Travel Agencies

The travel industry, with its high-value transactions and international clientele, faces unique challenges when it comes to credit card processing. While accepting plastic is crucial for smooth booking and customer convenience, travel agencies must be aware of the inherent risks and implement strategies to mitigate them. Here’s a breakdown of the key credit card processing risks and how to minimize them:  

1. Chargebacks:

• The Problem: Travel plans change, flights get delayed, and unforeseen circumstances arise. This can lead to a higher rate of chargebacks, where customers dispute charges with their credit card company. Chargebacks can be costly, involving fees, lost revenue, and potential damage to your merchant account reputation.  
• Mitigation:
  • Clear Cancellation Policies: Crystal-clear terms and conditions regarding cancellations, refunds, and travel changes are essential. Ensure these are easily accessible during booking.  
  • Thorough Documentation: Maintain detailed records of all transactions, customer communications, and travel itineraries. This provides evidence in case of a dispute.  
  • Proactive Communication: Keep customers informed about any changes to their travel plans and address concerns promptly.  
  • Secure Payment Processing: Utilize 3D Secure (like Verified by Visa or Mastercard SecureCode) for added authentication and fraud prevention.  

2. Fraud:

• The Problem: The travel industry is an attractive target for fraudsters due to high transaction values and the potential for anonymity. Fraudulent activities can include using stolen credit card details, booking fictitious trips, or exploiting vulnerabilities in online booking systems.  
• Mitigation:
  • Address Verification System (AVS): Verify the billing address provided by the customer against the address on file with the credit card company.  
  • Card Security Code (CVV): Always require the CVV code for card-not-present transactions.  
  • Fraud Detection Tools: Implement fraud screening tools that analyze transactions for suspicious patterns and flag potentially fraudulent activity.  
  • PCI DSS Compliance: Adhere to the Payment Card Industry Data Security Standard (PCI DSS) to ensure secure handling of sensitive cardholder data.  

3. Currency Fluctuations:

• The Problem: International travel often involves transactions in multiple currencies. Fluctuating exchange rates can impact your profit margins and create uncertainty in pricing.
• Mitigation:
  • Dynamic Currency Conversion: Offer customers the option to pay in their home currency, providing transparency and potentially reducing chargebacks related to exchange rate discrepancies.  
  • Hedging Strategies: Explore financial instruments to mitigate currency risk, such as forward contracts or currency options.

4. High Processing Fees:

• The Problem: Travel agencies often face higher processing fees due to the perceived risk associated with the industry.
• Mitigation:
  • Negotiate with Processors: Shop around and compare rates from different credit card processors. Don’t hesitate to negotiate for better terms, especially if you have a high volume of transactions.
  • Consider Interchange-Plus Pricing: Opt for transparent pricing models like interchange-plus, which separates the interchange fee (charged by card networks) from the processor’s markup.  

5. Technological Challenges:

• The Problem: Keeping up with evolving payment technologies and security standards can be challenging. Outdated systems can increase your vulnerability to fraud and data breaches.  
• Mitigation:
  • Invest in Secure Technology: Use a robust and secure online booking system that integrates with reputable payment gateways.
  • Regular System Updates: Ensure your software and security protocols are regularly updated to address emerging threats.
  • Partner with Reliable Providers: Choose payment processors and technology vendors with a strong track record of security and reliability.

By understanding and proactively addressing these credit card processing risks, travel agencies can protect their business, enhance customer trust, and navigate the exciting world of travel with greater financial security.

Posted in Best Practices for Merchants, Travel Agency Agents Tagged with: card, card-not-present, cardholder, chargeback, credit card, customer, fraud, high-risk merchants, merchant account, merchants, payment, processors, risk, transaction, travel, travel agencies, travel agency, travel agents

MERCHANT AGGREGATORS, MERCHANT OF RECORD AND PAYMENT SERVICE PROVIDER

Merchant Aggregators, Merchants of Records and Payment Service Provider what’s the difference?

Payment Service Provider –  is a company, which provides payment gateway and related services (like antifraud tools) to merchants. PSP is a representative of one or several acquiring banks. The merchant signs an agreement with the acquiring bank and PSP. The acquiring bank provides a merchant account and secures settlements for merchant’s transactions directly to the merchant’s bank account. Payment Service Provider secures delivery of the merchant’s transactions to the acquiring bank and some related services like fraud scrubbing and recurring transactions. The merchant has an own merchant account with this model.

Merchant Aggregator – is a company, which uses one merchant account to process transactions from many merchants. Merchants don’t have any agreements with an acquiring bank, but with the merchant aggregator. You get quick setup and get shut down quickly. Most aggregators are hard to get hold of, they don’t have human customer support. The problem with this model is, it’s not intended as a long-term, scalable solution to accepting payments and they can freeze your account or hold your money if anything unusual happens.

Merchants of Record – are a merchant, who use services of payment service provider (PSP) or merchant aggregators to accept payments on their websites for goods or services they sell. Merchant of record role requires an array of administrative responsibilities, such as managing a merchant account with a payment processor, paying associated credit card rates & fees for the transactions and other responsibilities like complying with PCI DSS Standards.

 

Posted in Best Practices for Merchants, Travel Agency Agents Tagged with: bank account, credit card, customer, merchant, payment gateway, payment processor, Payment Service Provider, PCI, transactions

Travel Agents Prefer National Transaction Corporation for Increased Cash Flow

Cash When You Need it by Not Holding Funds

In our second installment, we talked about NTC’s newest solution, NTC ePay. This third and final reason in this series we will go over how NTC keeps your cashflow going.

Due to the history of travel businesses, many travel agencies are given a travel merchant account with monthly credit card processing volume caps. This means merchants are only permitted to handle a specific number of credit card transactions or volume amount per month. Once that limit amount is reached, the merchant can no longer take credit cards for purchases that month. This keeps a business, especially an e-commerce merchant that relies on credit card payments, from operating effectively.

Imagine the impact on as a travel agent when you no longer have to worry about having your cash flow stopped. We work very hard to eliminate holds and reserves on all our travel merchant accountsaccounts.

Now imagine getting approved for large volume.

You will agree that those two factors will have a huge positive impact on your business growth.

Most merchant providers usually hold funds from travel agents, because historical data shows that consumers are much more likely to dispute and chargeback travel agency transactions because of a change in their travel plans.

You may be wondering, why do we not hold your funds?

Well simply said, because we understand your business. NTC has been doing business with travel professionals like you for over 20 years and we understand that holding funds creates a huge hassle for your operation. We understand that cash flow is essential to your continued success.

With NTC travel agents can feel confident that they will maintain cash flow to help their business operate smoothly and efficiently without interruptions.

Why do travel merchants flag large transactions?

Many times travel merchants run tens of thousands of dollars worth of transactions and their processor tells them they’re going to simply hold the funds and pay the merchant at a later date.

We understand how critical it is to have funds available because many agents have shared how with other merchant providers, their cash flow has come to a complete halt at times.

Remember that when you choose a travel payment processor, you must be sure to choose one with experience in working with travel agencies like NTC.

At NTC, we assist you in developing and implementing your fraud prevention procedures, so that you can be proactive in identifying and correcting potential weak spots in your processing cycle.

Over these past three blog articles, we have shared the three main reasons why travel agents like you prefer National Transaction Corporation. Now we want to hear from you as to which of these three reasons is most important for your travel agency business. We’d love to read your comments below.

Posted in Credit card Processing, e-commerce & m-commerce, Electronic Payments, Merchant Services Account, nationaltransaction.com, Travel Agency Agents Tagged with: credit cards, e-commerce, electronic payment, merchant account, travel

Top 3 Reasons Why National Transaction is Preferred for Travel Agent Payment Processing

Over the next three weeks we will explore on this blog some of the reasons why National Transaction Corporation is the preferred choice for travel agents.

The Travel industry is one of the world’s largest industries with a global economic contribution of over 7.6 trillion U.S. dollars in 2016. (Statista)

At NTC we recognize that travel agency payment processing has some unique hurdles to overcome, but we are leveraging our innovation because we want our travel agency partners to explore how our solutions transcend the challenges that travel agents face.

Secure processing is one of the reasons why National Transaction is the preferred choice for travel agents

National Transaction Corporation has Secure Merchant Payment Processing – Because when your customers know their data is safe, they keep coming back!

You’ve heard of the many data breaches within major corporations that have occurred in just the last few years, when customers’ confidential credit card information is stolen and businesses lose a small fortune in repairing the problem. The cost of such a security breach goes far beyond that, however; once a business has lost the trust of its customers, 60% of those cardholders will go elsewhere for their purchases and services, according to studies on the problem.

Imagine if this happened to your travel agency merchant account? It could be disastrous, especially because agencies tend to deal with high-dollar sales from a moderately-sized pool of customers – so every client counts.

NTC knows that you, like us, care about your customers, and we want your travel agency to be seen as a trustworthy place to book a dream vacation. The first step is for your business to be PCI-DSS compliant.

PCI-DSS (Payment Card Industry-Digital Security Standards) requirements were put in place by the credit card associations to deal with the increasing problem of identity theft and data loss. The requirements vary according to the types and the number of payment transactions your agency goes through, but you can be sure that NTC will help you stay compliant with the latest security standards.

In the event of a data breach, we are here to eliminate the negative impact it can have on your company. NTC may be able to help you with the fines, assessments, and other costs from the networks, and we will consult with you on how to proceed to protect your agency and your reputation.

As you know, data security is as much a concern for the business owner as it is for the cardholder – your customer. When your clients know that their data is safe with you, they will keep coming back to your agency to book their next great trip!

If you cannot wait to read blog number two out of this three part series, feel free to call NTC now at 888-996-2273 to find out the best options for your travel agency!

Posted in Credit card Processing, Credit Card Security, Travel Agency Agents Tagged with: cardholder, data, fraud, merchant account, payments, Security, transaction, travel, visa

NTCePay Technology is the Preferred Choice for Travel Agencies and Agents

Travel Agents prefer NTC ePay because they get paid faster with their very own “Buy Now” button or simply by requesting payments by email!

In our last installment, we shared how the security of NTC Payment Processing works for you. In this second part of our three-part series, we discuss the ways that the technology behind NTCePay helps your travel agency.

NTCePay offers travel agents the most innovative technology because it is fast, mobile friendly and easy to use.

Whether you use Quickbooks, Peachtree or any other accounting application, you can enter the invoice number into the ePay application for reconciliation, and you can customize your pricing to any amount you choose. Your agency can create invoice and payment links that can be posted to your website or any social media website for payment.

Things flow better when everything seems to work together, making your day a lot easier? Technology is something that can get your daily workflow to go smoothly, and NTC ePay works for you. If you need a customized solution to go with your workflow, NTC can make most anything a reality for your business workflow.

National Transaction Corporation is one of the few travel payment processing companies that can directly integrate with both TRAMS and SABRE. You can perform your bookings like you always have but have the payment flow the way you need it to. We also integrate with many booking engines and shopping carts allowing you many options that are not available by host agencies.

NTC ePay is simple, secure and sets up in just minutes. It’s a web application, so you can use it on any device you already own: your desktop, laptop, tablet or phone. It lets you add inventory items or use the quick send feature for simplified invoicing.

Our ePay product was designed from the ground up with your security in mind. Even though we encrypt data back and forth to the payment gateway, we also use the gateway to handle the cardholder’s input. NTC’s cutting-edge technology doesn’t store credit card data, nor does it transmit that data. What that means to you is that the liability is 100% on the bank and not your business, as is typically the case. The application is written and hosted on our own servers, so you can set up and be in the e-commerce business within minutes.

By the way, there are also many customizations available to you with NTC ePay which can be set up very easily by your users. Inquire with your specific process and we will meet your specific needs in the travel payment scope.

Now, when you run a social media campaign you can leverage our NTCePay technology to help you increase sales. Use our ePay links to post vacation travel packages or special sales and have customers pay in two clicks.

Next week we will share the third reason in this series why National Transaction Corporation is the preferred choice for travel agents like you.

Remember, when you need a safe and technologically advanced gateway to manage all your travel agency payments, look no further than NTC.

Feel free to call us now at 888-996-2273, if you are ready to start using NTC ePay today.

Posted in Credit card Processing, Credit Card Security, e-commerce & m-commerce, Electronic Payments, Internet Payment Gateway, Merchant Services Account, Mobile Payments, nationaltransaction.com, Travel Agency Agents Tagged with: card-not-present, credit card, customers, e-commerce, electronic payment, merchant account, Mobile Payments, payments, Security, transactions, travel

National Transaction Corporation CEO to Speak at ASTA Convention

Mark Fravel is the Founder and CEO of National Transaction Corporation. Founded in 1997, NTC has over 20 years of transaction processing experience, specializing in card not present and e-commerce solutions for the hospitality, tourism and medical industries, charitable institutions and franchises. NTC is an electronic payment expert, currently serving over 4,000 merchant accounts across Canada and the US.

He will be speaking at the ASTA Convention in Washington D.C. on Thursday August 23rd about PCI Compliance in regards to Travel Credit Card Processing.

For more information visit ASTA’s Global Convention Site.
ASTA is the American Society of Travel Agents

Posted in Credit card Processing, Travel Agency Agents