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Love to Travel and See Live Events? Let’s Talk Ticket Agencies and Brokers Merchant Accounts
At Durango Merchant Services, we know the excitement of traveling and experiencing live performances, whether it’s the adrenaline rush of a sold-out concert, the energy of a live sports event, or the captivating atmosphere of a theater production. Ticket agencies and brokers are at the heart of delivering these experiences, providing access to events that create lasting memories. However, running a ticketing business involves more than just selling tickets. Handling payment processing securely and efficiently is essential for keeping your business on track. Let’s dive into what makes a ticket agencies and brokers merchant account important and how Durango Merchant Services can help you succeed in this high-risk industry.
What is a Ticket Agencies and Brokers Merchant Account?
A merchant account is a type of bank account that allows businesses to accept payments by credit or debit card. For ticket agencies and brokers, it is a key piece of the business puzzle. This account enables your business to process transactions, whether customers are buying tickets online, over the phone, or in person. But ticketing isn’t just any industry—it has its own unique challenges. That’s why ticket agencies and brokers need specialized payment solutions tailored to the specific needs of the ticketing world.
Ticket agencies and brokers often manage a high volume of transactions, large-dollar amounts, and, in many cases, time-sensitive purchases that must be processed quickly and securely. A ticket agencies and brokers merchant account is designed to handle these specific needs while also protecting both the business and its customers from the risks that can come with high-value transactions and digital sales.
Why Are Ticket Agencies and Brokers Considered High-Risk?
When banks and payment processors evaluate businesses for merchant accounts, they assess risk levels. Unfortunately, ticket agencies and brokers often fall into the “high-risk” category, which can make securing a merchant account more difficult. Here are some of the primary reasons why this industry is flagged as high-risk by underwriting banks:
High Chargeback Rates: The ticketing industry faces a greater-than-average risk of chargebacks—when a customer disputes a charge and requests a refund through their credit card company. This can happen for a variety of reasons: event cancellations, postponed dates, double bookings, or dissatisfaction with the event itself. Chargebacks are expensive and can harm a company’s standing with its payment processor.
Large Transaction Amounts: Ticket agencies and brokers often handle high-value transactions, particularly when selling tickets for premium events or multiple tickets in a single purchase. Large transactions naturally raise concerns about fraud, which makes banks more cautious in issuing merchant accounts for ticket sellers.
Time-Sensitive Purchases: Ticket sales are often tied to specific dates, meaning any delays or issues in processing payments can have serious consequences. Customers expect to receive their tickets immediately, and if something goes wrong, they may demand refunds or initiate chargebacks.
Event Risk: There is always a risk that events may be canceled, postponed, or rescheduled. When this happens, ticket agencies and brokers may be overwhelmed by refund requests, leading to financial strain on the business and potential chargebacks.
These factors combine to create a higher level of risk for banks, making traditional credit card processors hesitant to provide services to ticket agencies and brokers. But high risk doesn’t mean impossible—it just means finding the right partner who understands how to navigate the challenges.
How Can Ticket Agencies and Brokers Get a Merchant Account?
The process of securing a merchant account for ticket agencies and brokers starts by finding a payment processor that understands your industry. Ticket agencies can’t just walk into any bank and get approved. Due to the industry’s high-risk nature, you need a payment processor that specializes in high-risk accounts and has experience in the ticketing space.
At Durango Merchant Services, we’ve spent years working with ticket agencies and brokers, helping them secure the credit card processing solutions they need to thrive. We understand that no two businesses are alike, and that’s why we tailor our payment processing solutions to fit the specific needs of your business.
Our process for helping you get a merchant account starts with an evaluation of your business’s unique risk factors, including the volume and value of transactions, your chargeback history, and your business model. From there, we work with trusted banking partners to find the best fit for your ticket agencies and brokers merchant account.
Can Ticket Agencies and Brokers Use Aggregate Services Like Stripe, PayPal, and Square?
Many businesses use aggregate payment services like Stripe, PayPal, or Square to process transactions. These platforms are user-friendly and convenient, but for ticket agencies and brokers, they often come with limitations. Here’s why aggregate services may not be ideal for your business:
Strict Terms of Service: Aggregators like Stripe, PayPal, and Square are often wary of high-risk businesses, and ticket agencies fall squarely into that category. They have strict terms of service and may place holds on your funds or even terminate your account without warning if they view your business as too risky.
Account Holds and Freezes: Because ticket agencies and brokers deal with high-value transactions and occasional chargebacks, these platforms are more likely to freeze your funds until they can investigate. This can create significant cash flow problems, especially if you have tickets to deliver or other business expenses to cover.
Risk of Account Closure: Even if you initially get approved to use a service like Stripe or PayPal, you’re not guaranteed long-term security. If your business experiences a higher-than-average chargeback rate or processes a large transaction, you could find your account closed, leaving you without a way to accept payments.
For ticket agencies and brokers, it’s often safer to work with a high-risk payment processor like Durango Merchant Services. We understand your industry and work with you to create solutions that minimize the risk of chargebacks and keep your payment processing running smoothly.
How Durango Can Help with Credit Card Processing for Ticket Agencies and Brokers
At Durango Merchant Services, we take the complexity out of payment processing for ticket agencies and brokers. We specialize in high-risk industries and have built a reputation for helping businesses like yours secure reliable credit card processing solutions. Here’s how we can help you:
Custom Solutions: We provide tailored payment processing for ticket agencies and brokers, designed to fit the specific needs of your business. Whether you’re selling tickets to concerts, sports events, or theater performances, we’ll work with you to create a solution that meets your goals.
Risk Management: Chargebacks are a major concern in the ticketing industry, but we help mitigate this risk by offering strategies to reduce chargebacks and fraud. Our services include tools that allow you to monitor transactions, identify potential fraud, and protect your business from disputes.
Expert Support: We’ve been helping ticket agencies and brokers for years, and our team of experts is always available to assist you. From setting up your account to troubleshooting issues, we’re here to help you every step of the way.
Partnerships with Banks: We’ve built strong relationships with banks that specialize in high-risk industries, giving us the ability to secure merchant accounts for ticket agencies and brokers, even when traditional processors have turned you away.
If you’re looking for a reliable, long-term solution for credit card processing for ticket agencies and brokers, Durango Merchant Services is here to help. Get in touch with us today, and let’s talk about how we can get you set up with the right payment processing solution for your business.
