Because of advance bookings, seasonal revenue, and customer disputes, many banks view travel companies as higher risk. This guide explains the challenges travel businesses face with payment processing, what features to look for in a provider, and how to choose the right solution for your business needs.
The Unique Challenges Travel Businesses Face in Securing Merchant Accounts
Travel businesses often encounter significant obstacles when seeking merchant account approval from payment processors. This hesitancy stems from three primary risk factors:
High Chargeback Rates
The travel industry is particularly vulnerable to chargebacks arising from cancellations, changes to travel plans, and customer disputes. These frequent chargebacks represent a substantial financial risk for payment processors.
Elevated Fraud Risk
Travel services are prime targets for fraudulent activity, with criminals frequently using stolen payment information to purchase expensive travel packages. In these scenarios, merchants typically bear responsibility for the resulting losses.
Complex Regulatory Environment
International transactions inherently create additional compliance challenges. Constantly changing travel advisories and cross-border regulations further complicate an already complex risk landscape.
These concerns make traditional financial institutions reluctant to provide merchant services to travel-related businesses. Even successful travel companies with strong track records frequently experience application denials, unexpected fund holds, or abrupt termination of processing services.
Selecting the Ideal Travel Merchant Account Provider
When searching for a merchant account provider suited to the travel industry, focus on companies that address the sector’s specific challenges. The best providers will offer:
Specialized High-Risk Processing
Look for underwriters who understand the travel industry’s unique chargeback patterns and can structure agreements accordingly.
Effective Chargeback Management
Prioritize services with proactive dispute resolution capabilities, real-time alert systems, and sophisticated fraud detection algorithms.
Comprehensive Currency Options
Select providers offering seamless processing in multiple currencies to accommodate international travelers’ preferences.
Streamlined Setup Process
Choose companies with efficient approval procedures, ideally completing the onboarding process within one week rather than extended timeframes.
Straightforward Fee Structures
Ensure complete transparency regarding all costs, particularly for international transactions and chargeback handling.
Your selected provider should also feature easy integration with existing booking platforms and offer round-the-clock customer support, especially during high-volume travel periods.
💡 Interested in learning more about what’s included in a typical high-risk merchant account? View our complete breakdown of FastoPayments’s high-risk merchant accounts.
Leading Travel Merchant Account Services for Quick Approval and Payment Security
1. FastoPayments
Best for: High-risk businesses needing robust fraud prevention
Key Features: AI-powered system that identifies suspicious bookings such as last-minute luxury reservations from new customers. Adaptive 3D Secure authentication implementation to prevent fraudulent transactions. Integrated Ethoca alert system that typically reduces chargeback frequencies by up to 70%.
Pros: Combines quick approval processes with comprehensive fraud prevention. Specialized understanding of travel industry payment risks. Get in touch to learn more.
2. PaymentCloud
With a focus on high-risk merchant accounts, PaymentCloud creates customized solutions for travel agencies experiencing elevated dispute rates, including chargeback protection insurance.
3. Durango Merchant Services
Best for: Offshore accounts and high-risk travel businesses
Key Features: Offshore merchant accounts to bypass strict U.S. regulations and reduce payment holds. High-risk approval for businesses with chargeback rates up to 10%.
Multi-currency processing in 100+ currencies, including EUR, GBP, and JPY. Fraud prevention tools like IP geolocation and velocity checks. No early termination fees, ideal for seasonal travel operators.
Pros: 20+ years of experience in high-risk travel (airlines, cruise lines, timeshares). Supports businesses with prior account terminations.
4. SMB Global Payments
Best for: International travel businesses
Key Features: Offshore accounts to avoid U.S. banking restrictions. Multi-currency processing in 130+ currencies. No rolling reserves for qualifying businesses. Chargeback mitigation via Ethoca alerts.
Pros: Approval in 3–5 days with minimal documentation.
Soar Payments
Best for: Transparent terms & flexible contracts
Key Features: High-risk approval for startups and previously terminated accounts. Month-to-month contracts with no early termination fees. Global payment gateways for cross-border transactions.
Pros: Free terminal rentals for in-person bookings.
5. Host Merchant Services (HMS)
Best for: Minimizing reserves & proactive chargeback management
Key Features: Reduced reserve requirements: HMS prioritizes freeing up cash flow by minimizing or eliminating rolling reserves for high-risk travel businesses.
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Proactive chargeback monitoring: Real-time alerts and dispute resolution tools to reduce chargebacks and protect revenue.
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Card brand compliance: Ensures transactions meet PCI DSS and card network regulations to avoid penalties.
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Fraud prevention: Advanced tools (e.g., tokenization, encryption) to block fraudulent transactions. Tailored support: Dedicated account managers for high-risk businesses navigating payment complexities.
Why Finding the Right Travel Merchant Account Provider is Important?
The right travel merchant account provider can significantly impact your business’s ability to manage chargebacks, fraud risks, and complex international transactions.
By focusing on providers that understand the unique challenges of the travel industry, you can secure smoother transactions, protect your revenue, and ensure quick approval.
