In 2019, travel and tourism were significant contributors to the global economy, but the industry has always been considered high-risk by banks. The pandemic has exacerbated these risks, leading to a steep increase in chargebacks and fraud.
With travel being heavily influenced by economic conditions and natural events, the uncertainty has further complicated the financial operations of travel-related businesses.
High-Risk Factors for Travel Merchant Accounts
The luxury nature of travel, combined with high-value transactions and third-party involvement, makes the industry vulnerable to cancellations and chargebacks. These factors contribute to the reluctance of banks to offer merchant services to travel businesses.
COVID-19 and Its Impact on Travel Merchant Accounts
The pandemic led to an unprecedented number of cancellations and refunds, inflicting severe financial strain on the travel industry. The International Air Transport Association (IATA) estimated a staggering loss for airlines, reflecting the broader impact on the entire sector.
This situation has led many banks to freeze or close merchant accounts for travel businesses, leaving them without a means to process payments.
Travel Industry’s Ongoing Struggle with Chargebacks
COVID-related restrictions continue to create uncertainty, leading to an increase in chargebacks. As travel agencies and related businesses strive to recover, they face the dual challenge of managing chargebacks and protecting against ‘friendly fraud.’
Reliable Merchant Services for the Travel Industry
Travel businesses require a merchant service provider that understands the unique challenges of the industry and offers solutions tailored to their needs.
Bankcard International Group recognizes the importance of the travel industry and has built strong relationships with domestic banks to offer comprehensive merchant account services.
Benefits of Domestic Travel Merchant Accounts
Opting for domestic processing offers numerous advantages, including competitive rates, faster funding, and lower overall costs. Perhaps most importantly, it provides personalized customer service, which is invaluable for travel merchants dealing with frequent cancellations and chargebacks.
Our advisors offer customized chargeback mitigation and dispute management services, along with a suite of fraud-fighting tools to ensure the smooth operation of your merchant account.
Bankcard International Group: Your Partner in Travel Payment Solutions
At Bankcard International Group, we offer a range of merchant services tailored to various travel-related businesses. Whether your business faced chargeback issues due to COVID or other challenges, we provide consultative solutions to meet your specific needs.
Our team of ETA-Certified Payment Professionals upholds the highest standards of professionalism, offering credible, transparent, and dedicated service to support the growth and success of your travel business.
Contact Bankcard International Group to experience the “BIG Difference” in travel industry merchant account services.
