Travel Merchant Accounts & Payment Processing for the Travel Industry
A Modern Guide to Digital Payments in the Travel Industry (2025 Edition)
- Nathan Beck
The Payment Processing Experts Know Us
Travel businesses face payment challenges that normal processors aren’t designed for—long booking windows, high-ticket trips, international customers, and unpredictable cancellations. A travel merchant account provides stable, high-risk-ready payment processing built specifically for tour operators, travel agencies, OTAs, charters, hotels, and activity companies. Durango Merchant Services helps travel merchants get approved, reduce chargebacks, accept global payments, and grow knowing the tools to help prevent shutdowns or frozen funds.
Key Takeaway
- Why do banks tag travel as high-risk? Because of advance-booking chargebacks, big-ticket sales, long fulfillment windows, and elevated global-fraud exposure — all of which raise processor liability.
- Durango provides built-in tools: staged payments, multi-currency checkout, 3-D Secure, and gateway integrations guard against fraud and keep bookings smooth.
- Fast-track approval tips include: show rock-solid refund/cancellation policies, supply at least six months of clean processing/financials, and outline a proactive fraud-&-chargeback plan.
Why Travel Payments Require a Different Kind of Infrastructure
Travel can be one of the most fun and rewarding industries to operate in—you create experiences, memories, and adventures. But on the financial side, it is also one of the most unpredictable. Customers book far in advance. Suppliers shift availability. Weather, illness, politics, airline delays, and global events all influence your ability to deliver. Add in high-ticket purchases and international buyers, and you suddenly have a payment landscape that looks nothing like a typical eCommerce business.
Despite this, many travel businesses still, understandably, start with generic processors like Stripe or PayPal simply because they’re easy. That ease lasts until the first seasonal spike, the first wave of cancellations, or the first batch of international card declines triggers a risk algorithm. Once that happens, funds can freeze, accounts can close, and momentum stalls.
A high risk travel merchant account exists to prevent exactly that. It’s a payment arrangement purpose-built for travel’s real-world operational patterns—not the simplified ones assumed by automated processors. In this guide, we’ll walk through why travel requires specialized underwriting, what a travel merchant account actually provides, how chargebacks work in this environment, and how the right payment partner can support your business at every stage of growth.
1. High Risk Travel Payment Processing: The Risk Profile the Banks Actually See
From a traveler’s perspective, a vacation is a dream purchase. From a bank’s perspective, it’s a high-exposure transaction. The time gap between payment and the actual trip creates risk. $1,000–$8,000 bookings are very common in this space and create higher financial exposure and potential loss to underwriters and business owners. And because travel experiences depend on third-party suppliers, fulfillment may involve variables you don’t fully control.
Industry data reinforces this reality:
- Travel chargeback rates often run 3–5x higher than traditional retail—driven by cancellations, itinerary changes, and service expectations.
- Payment failure rates in travel exceed 15% in some markets due to international card friction and fraud controls.
Nearly 40% of travelers report uncertainty about fees or refund rules, leading to disputes (Rapyd).
It’s not that travel merchants are unreliable—it’s that the product itself is dynamic, time-sensitive, and emotionally charged. When an airline changes a flight or a supplier cancels a tour, the customer often disputes the original charge. The bank doesn’t go after the supplier; it goes after the merchant of record: you.
A travel merchant account is underwritten with this context in mind. Every part of it—from fraud settings to settlement rules—is designed for these risk dynamics.
What Makes a Travel Merchant Account Different?
At its core, the uniqueness of a high risk travel merchant account is found in it’s specialized underwriting, risk management requirements, and technical capabilities of payment gateways customized to the needs of the travel industry:
1. Long-Lead Booking Support
Durango Merchant Services understands that a customer might pay today for a trip six months from now, and with our rigorous controls, this sort of long fulfillment window is less likely to trigger unnecessary reviews or funding holds.
2. High-Ticket Transactions are the Norm in Travel
$1,000 weekend getaways… $10,000 luxury vacations…
Travel bookings are often some of the highest-value card transactions a person makes all year. A travel merchant account is built to handle those tickets confidently and consistently.
3. Multi-Currency Acceptance for Global Travelers
Today’s travelers expect transparent pricing in their own currency. With multi-currency payment processing, international approval rates go up and checkout friction goes down. Global acquiring banks also help reduce failures caused by regional security checks and issuer rules.
- International credit cards
- Multi-currency transactions
- High-ticket package sales
- Deposits and balance payments
- Long lead-time bookings
- Group payments
- Cashflow-friendly settlement structures
- Robust chargeback protections and policies
Unlike aggregate payment providers (Stripe, Square, PayPal), a travel merchant account is built with travel-aware underwriting. The acquiring bank knows that a spike in bookings is seasonal, not suspicious. They know cancellations happen. They understand supplier dependencies and that large time gaps between booking and fulfillment are normal.
Instead of treating your business as an anomaly, they treat it as a recognized pattern in a well-understood vertical.
If you want merchant account stability, this distinction matters more than anything else.
- Travel agencies
- Tour operators
- Online travel agencies (OTAs)
- Hotels, vacation rentals & lodging providers
- Boat charters, adventure companies, & guides
- Multi-day tours, cruises, destination experiences
- Activity booking platforms
- International travel sellers
It differs from a basic merchant account in three key ways:
What Sets Durango Merchant Services Apart from the Rest?
- Deep understanding of the high-risk sector
- Robust network of banking relationships
- State-of-the-art payment processing software
- Customer specific consulting to help get approval
- Omni-channel payment support
- Recurring billing capabilities
- 24-48 Hour Payouts
- Focusing on the growth and stability of our clients
- Personal account manager with 10+ years of experience
- eCheck Processing through ACH
- Solid reputation in the payment industry
- Ten's of thousands of merchants placed
- Premium service for the high-risk sector
Durango Merchant Services has been helping travel industry businesses open merchant accounts for 2 decades. We have operations in the US, Canada, the EU and beyond and our gateway is PCI compliant, host multi-currency functionality and a suite of security and chargeback protection technologies. Contact us today to start accepting payments for your travel company.
Why Is It Hard To Secure Payment Processing For Travel Companies?
If you haven’t heard the story yet, it’s likely that you are experiencing what so many others have gone through before. It goes something like this:
You have a few bank statements and a spotless track record as a young merchant: few chargebacks, great business plan and a decent to excellent credit score. And still, it’s difficult to find a company to process credit card payments. You’ve discovered – through research or experience – that despite it all, you operate in a high risk environment. But remember, all is not lost. With some negotiation with the underwriter and risk management strategies all of this can be overcome. It’s for this reason Durango Merchant Services exists, to advocate for you through this process and help get a travel merchant account and secure payment processing.
Travel Merchant Account vs Popular Processors (Stripe, Paypal, etc...)
A practical comparison for travel businesses
| Feature/Risk Factor | Travel Merchant Account | Standard Merchant Accounts |
|---|---|---|
| Underwriting | Travel-aware underwriting based on real booking windows, high-ticket sales, seasonality | Automated underwriting not designed for travel; flags normal volume swings seen in travel. |
| Account Stability | High stability; approved with travel risk in mind | Frequent freezes/closures when disputes or cancellations spike |
| Chargeback Support | Human guidance, alerts, custom dispute strategy | Limited support; automated systems classify travel as “high-risk” |
| International Card Acceptance | Multi-currency, cross-border routing, 3-D Secure 2.2 | Higher decline rates; international cards often flagged |
| Payment Models Supported | Deposits, reserves, balance payments, staged payments, group bookings | Not designed for travel-specific flows |
| Seasonality Handling | Expected; won’t trigger shutdowns | Sudden spikes cause “risk event” flags |
| Large Tickets ($1k–$10k) | Supported with proper underwriting | Sometime Supported, Often flagged or auto-held |
| Large Tickets ($1k–$10k) | Sometime Supported, Often flagged or auto-held | Sometime Supported, Often flagged or auto-held |
Challenges and Opportunities in Securing a Merchant Account for The Travel Industry
Challenge 1: Travel Companies Tend to Have High Chargeback Rates
Travel agencies often face high chargeback rates because customers book way in advance, giving them plenty of time to rethink their plans. Whether it’s a change in personal circumstances or they’re just not happy with the service, these situations can lead to cancellations and disputes, which often result in chargebacks. Some of the most common reasons for chargebacks are: cancellation and changes, quality of Service complaints, untimely refunds, and disputes over terms and conditions.
Opportunity
Tackling high chargeback rates in the travel industry can actually be a great opportunity to fine-tune how your business operates, improve customer satisfaction, and maintain a travel merchant account. Start by publishing clear, customer-friendly cancellation and refund policies—ideally with flexible options such as penalty-free windows or credits—and back them up with prompt refunds and responsive support so travelers resolve issues with you, not their bank. Pair these service upgrades with rigorous fraud screening and consistent service quality, and you’ll reduce disputes, protect your merchant account, and foster long-term loyalty.
Challenge 2: High Average Transaction Values in the Travel Industry
When you book flights, hotels, or vacation packages through travel services, you’re often talking about potentially thousands of dollars changing hands in each transaction. This bumps up the risk for payment processors because there’s more on the line with each sale, making potential losses from chargebacks or fraud bigger deals and harder to recover.
Opportunity
High-value bookings raise expectations but also let you personalize trips and offer attentive support, boosting satisfaction while limiting chargebacks. The detailed data from each big sale helps refine services and marketing, turning one-time travelers into loyal, repeat customers.
Challenge 3. Travel Businesses Tend to Have Long Fulfillment Horizons
When you book a trip, there’s usually a big gap between making the reservation and actually going on the trip. This delay can be tricky for payment processors because a lot can happen during that time—like changes in a company’s financial situation or a drop in customer happiness. This uncertainty ramps up the risk for those handling the payments.
Opportunity
Long booking-to-departure windows don’t have to be a liability; they’re a built-in marketing runway. Use that time to stay in touch with helpful tips, destination updates, and personalized add-ons—think upgrades or curated tours—so customers feel cared for and more excited about the trip. Consistent engagement not only lifts ancillary sales but also deepens loyalty, increasing the odds of repeat bookings and referrals.
Challenge 4. Heightened Fraud Risk in The Travel Industry
The travel industry is prone to various types of fraud, including identity theft and the use of stolen credit cards. The global nature of the industry, combined with high transaction values and the involvement of multiple parties (airlines, hotels, etc.), makes it an attractive target for fraudsters.
Opportunity
Tackling payment fraud risks in the travel industry is a great way to boost your business's reputation and build trust with your customers. By putting strong anti-fraud measures in place—like top-notch security protocols, real-time monitoring, and secure payment systems—you can make your customers feel safe about where they put their money. This not only cuts down on fraud but also shows your customers that you're a reliable and safe choice for their travel needs.
Durango Merchant Services is here to help you overcome the hurdles, and secure a travel merchant account.
An important fact to accept out of the gate is that if you are a new company with a weak or non-existent record, you will be required to accept a highly managed relationship. If you have a solid record of risk, fraud and chargeback management, you will still be required to provide at least 6 months of prior financials to prove it. The sunny side of this is that if you can make it 3 years demonstrating that you know how to successfully manage risk and keep chargebacks and customer disputes at bay, trust will have been earned and you will have more leverage to negotiate a better deal, with better rates and less restrictions.
Table of Contents
- Discount rates that range between 1.95% and 4.95%
- Authorization fees ranging from: $ 0.15 to $0.25
- Monthly installments: rates ranging from $15.00 per month to $60.00 per month
- Free Application Processing
- Rolling reserve requirements that range from: 0% to10%
- Variable contract lengths including availability of month to month
- Direct financing with regular deposits
- Minimum processing: $5,000 minimum for US accounts, $50,000 for international accounts
What Do the Merchants We Serve Have to Say?
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Worked with Shane for Years. Fantastic company and very knowledgeable. Thank you again for everything. Strongly recommend
Daniel S.
Durango really cares about their customers! Nathan has been fabulous so far, he's been very patient in answering all my questions and has gone above and beyond to help me... read more
Molly W.
A++ Been with Durango for years in multiple high-risk e-commerce environments. Awesome people to work with and have given me all the tools I need to keep things running smooth.
John R.
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This has been a GREAT company to work with for the last 10+ years! It's rare we have an issue or question but a quick email or phone call resolves... read more
Julie W.
We could not be happier with the service we get from Durango. We'd give these guys 10 stars if we could. They have helped walk us through every... read more
OnRoto S.
Nathan was great thorough and he made it easy for us to startup, thanks Nathan and the team at Durango !
Corporategetaway R.
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We are paying lower rates and have better service as a result of working with Durango. They are professional, honest, responsive and easy to work with. We have been in business... read more
Steve K.
I have partnered with Durango Merchant Services for multiple years as a corporate sponsor and would highly recommend this company. They are invested in doing good in the Durango... read more
Taylor M.
Great customer service!
Target R.
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I'm very pleased with the services from Durango! They are easy to work with and very affordable.
Brian K.
Nathan is so Awesome! He made sure that the process of setting up the merchant account was transparent. I didn’t know what to expect but he was very informative and... read more
jacqueline S.
Nathan came through when we needed it the most. Stuck with us through the entire process with patience and the answers we needed to get back going!! Highly recommend!!
OPSol T.
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I have worked with Brad at Durango Merchant Services for 7 years. They have consistently gotten "high risk" merchant accounts approved for me quickly. Communication is excellent. I... read more
Andrew C.
Brad of Durango Merchant Services is a true professional. He is honest, he is prompt, and he gets the job done. It's rare to find people like this. I would... read more
Michael S.
Durango helped me get my merchant account and card processor in my so called high risk business. Thank you Nathan for helping me thru the application process and answering... read more
Gordon C.
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If you are what would be considered a high risk business let me tell you this.. Durango will help you every step of the way to make sure you... read more
Ean L.
Shane and company provide outstanding customer service and great rates. I have been with them for nearly 10 years with no complaints. They answer their phone promptly and provide excellent... read more
Patrick L.
I was searching for a Company that would work with me since i have what is considered "HIgh Risk" business. Saw, a company called Durango Merchant Services and I immediatly... read more
Allan A.
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Shane took care of us when we needed a new credit card processor quickly.
Mary B.
Brad Jess with Durango Merchants is the best in the business... Iv'e been with Brad since 2009 and he has always been so completely helpful and diligent to get any... read more
George C.
I would recommend Durango Merchant Services to everyone. My clients and I have used them since 2006. They are very nice and very smart and very helpful. Whenever I need... read more
Becky S.
Dive Deeper Into Payment Processing for Travel Agencies and Other Travel Industry Companies
How Do I Open a Travel Merchant Account?
Durango Merchant Services has put together a clear and comprehensive guide designed to help potential clients know what to expect when applying to process credit card transactions in the travel industry. Our sales team and account managers are experts in payment processing and are always ready to assist, offering guidance and clarification throughout the process to help you secure a travel merchant account successfully.
How Do I Integrate Durango Pay Gateway into My Travel Business?
Durango Pay Gateway is perfectly suited to meet the specific needs of the travel industry. It’s incredibly versatile—whatever you need, chances are it can handle it. This gateway integrates seamlessly with over 150 shopping carts, from WooCommerce to Shopify, making it a breeze to use regardless of your platform. It’s also omni-channel ready right out of the box, which is ideal for travel businesses operating across multiple sales channels. Plus, it comes equipped with robust fraud detection and prevention tools as well as chargeback management features, helping you keep transactions secure and minimizing financial risks.
How do I increase my credit card processing limits?
Want to boost your credit card processing limits for your travel business? Here’s the strategy: demonstrate a solid track record of consistent and reliable transactions, and ensure your business finances are robust and healthy. Minimizing chargebacks and maintaining a strong bank balance can significantly improve how transaction handlers view your business. We encourage you to have an open discussion with your account manager about your expansion plans—it might just be the key to securing more favorable terms.
Like all great travellers, I have seen more than I remember, and remember more than I have seen.
Some Resources to Help Your Travel Business Thrive
Founded in 1952, the Association of National Tourist Offices and Representatives (ANTOR) is a well-established group that brings together national and regional tourist offices from around the globe. ANTOR’s main mission is to help these offices collaborate and share info on how best to market their destinations. They host a lot of educational events, workshops, and networking opportunities where members can catch up on the latest tourism trends, learn about sustainability in travel, and show off what their countries have to offer. Plus, they represent their members at major international travel expos, advocating for their interests and making sure they stay competitive in the ever-evolving travel industry.
The National Tour Association (NTA), founded in 1951 as the National Tour Brokers Association, is a prominent trade organization for travel professionals in North America, focusing on the packaged travel industry. NTA offers its members a variety of services including educational programs, industry updates, advocacy, and networking opportunities, notably through its annual Travel Exchange convention. This event provides a vital platform for networking, business development, and learning about current industry trends. Additionally, NTA actively represents the interests of its members in governmental legislative processes and provides valuable market insights to help tailor travel offerings to evolving consumer demands, thereby enhancing the quality of travel experiences available to the public.
The American Society of Travel Advisors (ASTA), established in 1931, is a leading organization in the travel industry, originally founded as the American Steamship and Tourist Agents’ Association. ASTA advocates for travel advisors and agencies, offering them legal support, educational opportunities, and a platform for networking. It works to influence policies affecting the travel industry and ensures professional standards through a strict code of ethics. ASTA also provides members with access to exclusive research, marketing tools, and professional development opportunities, including training and industry events. The organization plays a critical role in lobbying for travel professionals’ interests on key issues such as consumer rights and transparent pricing, making it an essential advocate and resource in the travel sector.
How to Apply for Travel Merchant Services?
Applying for travel industry merchant services, given the high-risk status of the travel industry, requires careful preparation and attention to detail. Here’s a step-by-step guide to increase your chances of approval and start processing payments for your travel businesses:
Required Documents:
Ensure Regulatory Compliance
Steps To Open A Travel Industry Merchant Account:
Frequently Asked Questions (FAQ)
What is a travel merchant account and why is it considered high-risk?
A travel merchant account is a type of business bank account that allows travel agencies and other travel-related businesses to process credit card transactions. It's considered high-risk primarily due to the nature of the travel industry, which includes factors like high transaction values, advance bookings, the potential for high chargeback rates, and fluctuations in the global economic and political climates. These factors increase the perceived risk for banks and payment processors, making it more challenging for travel businesses to secure merchant services.
How can I reduce the risk of chargebacks in my travel merchant account?
Reducing chargebacks in a travel merchant account can be achieved by implementing several strategies:
- Clear communication: Ensure all terms and conditions, particularly cancellation and refund policies, are clear and acknowledged by customers at the time of booking.
- Quality customer service: Provide prompt and efficient service to address customer inquiries and complaints before they escalate to chargebacks.
- Fraud prevention measures: Use advanced fraud detection tools and secure payment processing technologies to minimize fraudulent transactions.
- Follow-up communications: Send confirmation emails and reminders about bookings, and provide customers with easy access to support if their plans change.
What are the key features to look for in a payment processor for a travel merchant account?
- Specialization in high-risk industries: Providers that specialize in or are familiar with the travel industry can offer tailored services and understand the unique challenges.
- Comprehensive fraud and chargeback protection: Essential for mitigating risks associated with high-cost transactions and international dealings.
- Multi-currency and international transaction capabilities: Since travel businesses often deal with customers from around the world, being able to process payments in multiple currencies and handle cross-border transactions is crucial.
- Reliable customer support: Given the complexities and potential issues that can arise in the travel industry, having accessible and knowledgeable customer support is invaluable.