Important things you need to know about a Merchant Account for Travel Business

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As technology is improving, new and more effective means of carrying out business are being introduced. These days, all types of businesses are offering their products and services through online purchase. In order to accept payments made through debit or credit cards, it is essential to have a merchant account. If you are a merchant, in that case, it is absolutely essential for you to understand the fact that there are many businesses, which falls under the high-risk category. In the following section of this article, you will be offered a brief insight into one such high-risk industries, which is the travel and ticketing business.

Benefits of providing Merchant Account to a Travel Agency

Here are some of the reasons as to why travel agencies are granted payment gateways by the merchants

  • Booming Industry: Despite of various types of risk factors associated with it, travel industry has also been a booming one. As a matter of fact, it is considered to be the second largest industry in the world, in terms of revenue generation. This industry is likely to prosper more in the days to come. As a result, they are offered merchant account services
  • ROI: In terms of return on investment or ROI, travelling industry is considered to be as one of the most profitable one. The fact there are lots of money involved in this particular industry, attracts the merchant account providers to make some considerable income.
  • On the Rise: As mentioned, travel industry is one of the most booming industries in the world. The graph of this industry is always on the rise and hence, generation of profit has always remained steady. This one aspect has played a significant role when it comes to attracting merchant account providers
  • Global Presence: The fact that travel industry is located all over the business, makes it a perfect platform for the merchant account providers to get involved into it. It offers an excellent opportunity for them to make tons of profit

Are there any Disadvantages?

There are a couple of disadvantages which can be associated with this particular industry. Here are some of them

  • High Chargeback: One of the major cons is the fact that higher level of chargebacks are associated with this industry. This adds to the risk factor, which at times is an area of concern for the account providers
  • Advance Payment: The fact that payment in this industry is made in advance, and in case of any cancellation, the entire expense needs to bared by the service provider, makes it a risky affair
  • International Transactions: When it comes to international transactions, there are different laws and policies which needs to be adhered to. This is one of the reasons for the account providers to decline requests at times.

Are you looking to get a merchant account for your travel business? In that case, we, at iPayTotal have the best of services to offer. Get in touch with us for more details.