Travel Merchant Account And Payment Processing
A travel merchant account gives agencies and tour operators a safer way to accept cards for big-ticket, often international bookings—combining staged payment options, multi-currency checkout, and 3-D Secure fraud tools so chargebacks stay low and cash keeps flowing through busy seasons.
- Nathan Beck
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.
What are Travel Merchant Accounts?
Travel merchant accounts are special bank accounts made for businesses in the travel sector, like travel agencies, tour operators, airline ticketing services, and hotels. These accounts let these businesses handle payments, especially from ACH transfers, and credit and debit cards. This is important for travel companies because they often deal with expensive transactions and operate on an international scale where cash transactions aren’t practical.
Why Are Travel Merchant Accounts Specialized?
- High Volume Transactions: Travel companies tend to have a lot of big-ticket transactions due to the costs of travel packages, flights, and places to stay.
- Higher Risk of Chargebacks: There’s a greater risk of chargebacks in the travel industry. This is mainly because of the high costs involved and the long time between when a service is booked and when it’s actually used.
- Currency and Geographical Considerations: Travel businesses often need to manage payments in different currencies and handle transactions that cross national borders. This requires more advanced financial tools and security measures to keep everything running smoothly.
Durango Merchant Services: Travel Payment Experts
Durango Merchant Services is a specialized payment processing company founded in 1997, focusing on high-risk industries often overlooked by traditional banks and payment processors. We cater to a diverse range of sectors including travel agencies, airplane charters, boat charters, hotels, online booking engines, destination marketing organizations and other travel businesses. Understanding the unique challenges faced by the travel industry, we provide tailored services to ensure reliable payment solutions for travel businesses. Our mission is to offer support and customized payment processing options that address the specific needs of these sectors, helping them thrive despite the complexities of their industries.
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.
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
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.
