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.
In today’s fast-paced digital world, customers expect businesses to offer a variety of payment options. Electronic payment processing has become essential for businesses of all sizes, from small startups to large corporations. This article will provide you with all the information you need to know about electronic payment processing and why National Transaction Corporation is the best choice for your business.
What is Electronic Payment Processing?
Electronic payment processing refers to the electronic transfer of funds from a customer’s account to a business’s account. This can be done through various methods, including credit cards, debit cards, e-checks, and mobile payments. Electronic payment processing is faster, more secure, and more convenient than traditional paper-based methods.
Benefits of Electronic Payment Processing
Faster Processing Times: Electronic payments are processed much faster than paper checks, which can take several days to clear.
Improved Security: Electronic payment processing is more secure than traditional methods, as it uses encryption and other security measures to protect sensitive data.
Increased Convenience: Customers can make payments from anywhere at any time, using their computer, smartphone, or tablet.
Reduced Costs: Electronic payment processing can save businesses money on processing fees and other costs associated with traditional methods.
Improved Cash Flow: Businesses can receive payments more quickly, which can improve their cash flow.
Why Choose National Transaction Corporation?
National Transaction Corporation is a leading provider of electronic payment processing solutions. We offer a wide range of services to businesses of all sizes, including:
Credit and Debit Card Processing: We accept all major credit and debit cards, including Visa, Mastercard, American Express, and Discover.
E-Check Processing: We offer e-check processing services, which allow customers to make payments directly from their bank account.
Mobile Payment Processing: We offer mobile payment processing solutions, which allow customers to make payments using their smartphone or tablet.
Online Payment Processing: We offer online payment processing solutions, which allow businesses to accept payments through their website.
At National Transaction Corporation, we are committed to providing our clients with the best possible service. We offer:
Competitive Rates: We offer competitive rates on all of our services.
Reliable Service: We provide reliable service that you can count on.
Excellent Customer Support: We offer excellent customer support, available 24/7.
Secure and Compliant Solutions: We are PCI DSS compliant, ensuring the security of your customers’ data.
Make the Switch to Electronic Payment Processing Today
If you’re not already accepting electronic payments, now is the time to make the switch. National Transaction Corporation can help you get started with our easy-to-use and affordable solutions. Contact us today to learn more about how we can help your business grow.
Travel agencies are viewed as high-risk merchants. As such, you need a merchant solution that best suits a travel merchant needs.
You want an account that eliminates the complexities of a typical shopping cart. Ideally, it allows you to request payment from clients without the need of setting up booking engines and carts.
This post is going to guide you on how to use a payment solution NTCePay and other merchant solutions to ensure a seamless operation of your business.
Payment solution e-Pay allows you to eliminate the complexities of integrating payment processing into your point-of-sale or an accounting system.
With this payment method, you only need to send a payment request to your customers via email. You don’t need to send invoices via snail mail or fax any forms to your customers. Plus, NTC ePay doesn’t need you to take orders over the phone.
With this service, you can create a “BUY” button for any transaction amount in seconds. You also don’t need a website to you use this service. NTCePay allows you to generate a digital link that you can email to clients.
The service allows you to customize the process to make everything simple for your customers. After the customer pays the specified amount, a receipt is generated, and the amount is sent to your account.
Tomorrow we are going to discuss on how to understand your Travel Merchant Account….So standby to learn more.
Credit card transaction types are categorized based on the level of risk and processing cost associated with them. Here’s a breakdown of the common types:
1. Qualified
Definition: These are considered the “safest” and least expensive transactions for processors to handle.They typically involve traditional credit or debit cards processed in person with a physical card swipe or chip insertion.
Characteristics:
Card is present during the transaction
Cardholder’s signature is captured (if required)
AVS (Address Verification Service) matches the billing address on file
CVV (Card Verification Value) is provided and matches
Transaction meets all security protocols and risk assessment criteria set by the card issuer and processor.
Examples:Swiping a standard Visa or Mastercard credit card at a retail store.
2. Mid-Qualified
Definition: These transactions fall in between qualified and non-qualified in terms of risk and processing cost. They often involve card-not-present transactions or cards with higher reward structures.
Characteristics:
Manually keyed-in transactions (online, over the phone, or mail order)
Rewards cards with higher cashback or points benefits
Business or corporate cards
Transactions where AVS or CVV information is not provided or doesn’t match
Examples: Entering your credit card details online to purchase something, using a rewards card with travel benefits.
3. Non-Qualified
Definition: These transactions are considered the riskiest and most expensive to process.They often involve international cards, manually keyed transactions without proper security measures, or cards with very high reward programs.
Characteristics:
International credit cards
Manually keyed transactions without AVS or CVV verification
High-risk businesses like online gambling or adult entertainment
Keyed transactions for business or corporate cards
Examples: Using a foreign-issued credit card, manually processing a transaction without verifying the cardholder’s address.
Why does this matter?
Processing Fees: Merchants are charged different fees for each transaction type.Qualified transactions have the lowest fees, while non-qualified transactions have the highest.
Tiered Pricing: Many payment processors use tiered pricing models, categorizing transactions into these types and charging accordingly. This can sometimes be confusing or lead to unexpected costs for merchants.
Interchange Fees: The card networks (Visa, Mastercard, etc.) also charge interchange fees for each transaction, which vary based on factors similar to those used for transaction type categorization.
Understanding these transaction types is crucial for merchants to:
Negotiate better processing rates: By understanding the factors that influence transaction categorization, merchants can negotiate better fees with their processors.
Optimize payment processing: Merchants can take steps to minimize the number of mid-qualified and non-qualified transactions, such as encouraging in-person payments or using address verification systems.
Control costs: By being aware of the different transaction types and their associated costs, merchants can better manage their payment processing expenses.
Remember: The specific criteria for each transaction type can vary depending on the payment processor, card network, and individual merchant account. It’s always best to clarify with your payment processor to understand their specific categorization rules and fee structures.
To establish a merchant account for your business call now 888-996-2273 or click here NationalTransaction.Com
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!
Life has its ups and downs, and we all know of those times where you feel like giving up. These quotes will you motivated and ready for round two!
When you reminisce the past because it was “easier.”
1. Be loyal to your future, not to your past.
When people say you are not ready to start a business:
2. You are never too old to start an empire, or too old to chase a dream.
When you feel you are not moving in the right direction:
3. The difference between who you are and who want to be is what you do.
When the nay-sayers say you are spending too much time on your “little dream”:
4. I would much rather work 16hrs a day for myself, than 8 hours a day working for someone else.
When you need to get started:
5. If you want to achieve greatness stop asking for permission.
When you are not sure how to stay motivated:
6. Create a vision that makes you wanna jump out of bed in the morning.
When you are too scared of trying:
7. You have no idea what you are capable of until you try.
When you need to remember why you are doing it:
8. The goal isn’t more money. The goal is living life on your own terms.
When you are not sure if you are ready:
9. If you wait until you’re ready, you’ll be waiting for the rest of your life.
When you are ready to make a change:
10. You’re only one decision away from a totally different life.
National Transaction is celebrating 21 years in the business today. Founded in 1997 National Transaction (NTC) purpose is to serve businesses of all sizes with their cash flow with the highest levels of professionalism and care.
This 21 year anniversary would not be possible without our leader, Mark Fravel and we want to take you back to his why and the reason we are still here today.
The beginnings:
Mark, a single parent of 3 beautiful daughters, wanted to provide for their kids without being on the road all the time. And so, with this passion in mind, a desire to serve and commitment to his family, National Transaction was born.
NTC began like many business and passions, with no customers and only one employee but quickly grew and Mark knew that leading with confidence and excellence will drive this business somewhere.
The Present:
Now, NTC often ranks in the top 10 of many data and technology awards. This Excellence has also earned us an A+ rating in the Better Business Bureau.
This 21 years would not be possible without our desire to help a business grow and give them the right tools for their transactions. We love being on the phone with our customers, we love getting to know them and how we can provide our best service.
The Future
Mark started this with a desire to be a family man, and so, this family feeling has stayed with our company. We treat our team like family, and we are excited about what our future holds the next 21 years.
Thank you for celebrating 21 years of customer service, passion, connection and above all, quality. We will continue to provide you with the best service we know how to give, and we will uphold our promise and mission to make digital transactions reliable and simple to the merchant and familiar to the consumer, reducing the complexity and expense to both.
Before you can start accepting credit card or electronic payments, there are a number of factors to consider.
You will need to decide on a Point of Sale system. Some Merchant Services Providers require you to use only their equipment.
Some of these systems have expensive equipment costs. Others will provide you with free card readers. Companies offering free equipment may do so in exchange for higher processing fees.
Before you choose a Merchant Services Provider, you should look into how they work those fees.
Understanding Processing Fees
Credit card processing fees have several moving parts, so we aren’t going to dive too deeply into how these fees are determined. We will, however, take a broad overview.
Merchant Services Providers will charge either a flat rate, a percentage, or a combination of the two. This fee is called an interchange rate.
Interchange rates vary between card providers, which is why some sellers don’t accept certain credit cards and why many small companies have minimum requirements for credit card payments.
Some Merchant Services Providers don’t charge a flat transaction fee, however, they usually charge a higher percentage for payments.
Each model has its benefits and disadvantages.
Before choosing a Merchant Services Provider, familiarize yourself with their processing fees. Consider how they will fit with your business model. Are most of your transactions smaller or larger? How much will a free card reader save you?
Weigh every option out before you lock yourself into an agreement.
For Payment Consultation call now and speak to our Payment Consultants 888-996-2273!
If you’re running an unusual transaction and know of it beforehand, let your merchant provider know; sending an invoice in advance can cut processing time.
Make sure to give your most up to date information. Keeping provider in the loop on the fluctuations in your processing volumes will help tremendously, especially as your business grows.
Funding delays are an inconvenience, but being prepared can keep the delay to a minimum. If you keep these tips in mind, you’ll be processing without ever having to worry about delays again.
Flagged, Security and Review Process
Why some merchant accounts hold funds and others do not?
There are a number of reasons:
Underwriting merchant account is ongoing. Imagine a small business convenience store was set up and accidentally enters $1,000.000 should we transfer that or hold it?
One reason is something has gone with that particular business account.
Another reason could be that particular institution’s practices are more efficient than others.
Financial institutions use different payment processing systems, and they are not uniform in their practices. For this reason, some transactions are significantly faster than others.
Though there are other reasons funds get held, the main reason for this occurrence is when a payment is out of the ordinary patterns.
Unusual transactions are any transaction that vary from your typical processing patterns.
If It’s for security, an account will be flag as a way to reduce fraud as well as ensuring no one is using your account.
How do I know if I’m flagged?
Security checks are carried out by processing banks or processor. You’ll be contacted by a loss prevention officer. They’ll provide all details of the hold, including the review process as well as the next steps.
What’s the review process?
The review is simply to verify your transaction before delivering your funds. A typical review is confirming the transaction with yourself as well as your customer’s credit card company. You’ll speak briefly with a loss prevention officer to discuss the transaction. If further review is required, the loss prevention officer may ask you for a copy of the transaction’s invoice.
How can I speed up the process?
For an easy review, make sure to provide detailed documents. When an invoice is asked for, make sure it clearly shows the following:
Tokenization is a powerful security feature that allows a merchant to support all of their existing business processes that require card data without the risk of holding card data and without any security implications, because tokens are useless to criminals, they can be saved by the merchant as they do not represent any threat.
The liability and costs associated with PCI compliance is substantially reduced and the risk of storing sensitive data is eliminated.
Tokenization applies to credit card and gift card.
Merchants set up for the tokenization service receive responses that include a token.
The token generated is not linked to a specific transaction but to a specific card number and the token generated for that transaction will be identical for every use of that card number and merchant.
Furthermore, you can generate a token and save the token with associated information in the Card Manager.
For Electronic Payments with Tokenization call now 888-996-2273
