Merchant Account for Travel Agencies
Travel-oriented businesses are considered high-risk merchants as far as credit card processors are concerned. And, therefore are among the most difficult business types to acquire successfully accepted for a Merchant Account. The reason is that experience demonstrates that customers are impressive. They are more able to dispute and chargeback travel agency transactions than most others.
Know the risk
To mitigate your risk and assure your acceptance for a high-risk merchant account, you will need to set up card acceptance policies and procedures to address several risk-related issues, including for example:
High-Risk Travel Agency Business; your association may not really be a Visa or MasterCard merchant, subject to the Credit Card Associations’ rules, regulation and policy. However, the airline is a Visa and MasterCard merchant and it is subject to their rules and regulations. Understand that, in most fraud-related transactions, the airline transfers financial liability to the travel agency it has partnered with as part of the contractual agreement. In such cases, your association will bear full financial responsibility.
An approval request that is clear by an issuer indicates that the credit card account is in good standing. In any case, the endorsement is NOT proof that the valid cardholder is making the purchase, nor is it an assurance of payment. Be advised that, in most cases, airlines are liable for fraudulent card-not-present transactions, even when they were endorsed by the card issuer.
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