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Private Plane Charter Merchant Account

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What is a Merchant Account for Private Plane Charters?

A private plane charter merchant account allows companies in the private aviation industry to accept payments, typically through credit card processing, for charter services. This type of account is set up through a payment processor or acquiring bank, facilitating secure and efficient transactions between the customer and the business. With such an account, a private plane charter company can offer various payment options, enabling their clients to pay for charters conveniently with a credit or debit card.

However, due to the unique characteristics of private plane charters, acquiring a merchant account for this industry can come with additional scrutiny and challenges.

Why Are Private Plane Charters Considered High-Risk?

High-risk industries are generally characterized by factors that increase the likelihood of chargebacks, refunds, or fraud. In the case of private plane charter companies, there are several reasons why they might be considered high-risk by underwriting banks:

  1. High Transaction Values: Private plane charters often involve large amounts of money, sometimes ranging from tens of thousands to hundreds of thousands of dollars per transaction. These high-value transactions increase the financial exposure for payment processors and banks.

  2. Extended Fulfillment Period: Since many charter services are booked weeks or even months in advance, there is a longer period between the payment and the delivery of the service. This extended time frame increases the chance of disputes or cancellations, which can lead to chargebacks.

  3. Variable Demand and Seasonality: The private aviation industry often experiences fluctuating demand. For instance, demand for private charters might spike during holiday seasons or special events. This variability can be seen as a red flag for underwriting banks, as it suggests inconsistent cash flow.

  4. Chargeback Risk: The high-ticket price of private charters increases the likelihood of disputes and chargebacks. If a client feels that the service was not delivered as expected, they may request a refund or dispute the transaction.

  5. Regulatory Scrutiny: Private aviation is subject to stringent regulations, and any lapse in compliance can result in penalties or operational disruptions, further increasing the risk for payment processors.

How to Get a Private Plane Charter Merchant Account

To set up credit card processing for private plane charters, you will need to work with a payment processor experienced in high-risk industries. The application process typically includes:

  1. Detailed Business Documentation: Be prepared to provide thorough documentation of your business, including financial statements, licensing information, and proof of regulatory compliance.

  2. Clear Fraud Prevention Measures: Demonstrating that your company has robust fraud prevention strategies in place can make you more attractive to an underwriting bank.

  3. Proof of Stable Cash Flow: Payment processors want to see consistent and stable revenue to ensure that you can manage the risk of large transactions and any potential chargebacks.

Durango Merchant Services specializes in providing payment processing for private plane charter companies, offering tailored solutions to help businesses in this high-risk industry.

Examples of Private Plane Charter Trips and Estimated Prices

Here are some examples of private plane charters, with estimated costs based on common routes and aircraft types:

  • New York to Miami (Light Jet): Approx. $12,000 to $15,000
  • Los Angeles to Las Vegas (Turboprop): Approx. $4,000 to $7,000
  • San Francisco to Aspen (Midsize Jet): Approx. $18,000 to $22,000
  • London to Paris (Very Light Jet): Approx. $6,000 to $8,000
  • New York to Los Angeles (Heavy Jet): Approx. $45,000 to $60,000

The high price point for these services, along with the potential for cancellations, contributes significantly to the risk profile of the industry. Large payments for services that may be scheduled far in advance can lead to increased refund requests, especially if plans change or if weather disrupts flight schedules.

Private Plane Charter Companies Suspended by Payment Processors

Stripe, Paypal, Square and Shopify Sometimes Close Accounts without Warning

Unfortunately, some private plane charter companies have faced issues with popular payment processors like Stripe, PayPal, Square, and Shopify. These platforms often cater to low-risk businesses and may not support industries with high-value transactions or longer fulfillment times. As a result, private plane charter companies may experience:

  • Account Suspensions: Payment processors may freeze or suspend accounts without warning due to perceived risks related to chargebacks or regulatory concerns.

  • Processing Limits: Some processors impose limits on transaction sizes, which can be problematic for companies dealing with large sums for private charters.

  • Account Closures: In some cases, providers like Stripe or PayPal may close accounts entirely if they consider the business too risky.

To avoid these disruptions, it’s essential for charter companies to work with providers like Durango Merchant Services, who have experience in credit card processing for private plane charters and understand the complexities of this high-risk industry.

Why Choose Durango?

  • High-Risk Expertise: Durango Merchant Services is experienced in working with high-risk merchants, ensuring that your payment processing is designed to handle the nuances of your industry.

  • Stable Merchant Accounts: Unlike aggregate providers, we provide dedicated merchant accounts tailored to your business needs. This means less risk of unexpected freezes or closures and more control over your account and funds.

  • Fraud Prevention and Chargeback Mitigation: We help you implement tools to reduce fraud and manage chargebacks effectively, giving you peace of mind that your account is secure and protected.

  • Responsive Customer Service: At Durango Merchant Services, we pride ourselves on offering personalized support to help you resolve any issues that may arise. We’ll work closely with you to ensure that your business remains operational, even if you’ve faced setbacks with other providers.


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