If you run a travel agency as tour operator, or hotel operator planning to the same then you must be excited by the opportunities in High Risk.
Before start receiving online funds, you must setup payment gateway for your merchant account.
Your online payment gateway basically makes it possible for your customer’s payment to reach the merchant bank’s processor.
But if you are just starting, than getting a merchant account for business is the toughest job.
Good financial credibility also not getting merchant account for you. You may or may not be aware, but the real and only reason is that your business model falls under high risk.
And banks and merchant gateway providers think that they have credit risk involved with the industry you are in.
This is not because the sales person does not want your business.
This is because bank or their processor will not accept high risk businesses because of the regulatory and / or charge-back risk.
But remember, all is not lost. With some negotiations and risk management strategies all of this can be overcome.
REASONS WHY YOUR BUSINESS IS HIGH RISK
| Industry Language | Normal Language |
| High ticket size | Expensive travel |
| Charge-backs | Cancellations issue |
| Long Fulfillment time horizon | Refund issues |
| High Failure rates | Competitive business |
OVERCOMING HURDLES: WHAT YOU CAN DO TO GET MERCHANT ACCOUNT
- Find consultants who specialize in the helping high risk merchants finding a merchant account.
- We at merchant stronghold provide you the same.
- If you have a good record of risk, fraud and charge-backs, you will be required to provide at least 6 months of prior financials to prove it.
- The best side of this is that if you can provide financial statements of 3 years, you will have more leverage to negotiate a better deal.
- If you are a new company with a weak or non-existent record, you will be required to accept a highly managed relationship.
- A common mistake that everyone does is to find a big banks and merchant account providers.
- If these processors receive any hint that you are high risk, there is a chance that the merchant account will be terminated.
- Develop and put into action a strong fraud prevention plan. Introduce new tools that will help you detect and fight fraud.
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Purchase a financial failure insurance plan to boost financial security.
These actions will be enough to get a merchant account for your tour and travel business. Just because you’ve been rejected for a merchant account before, doesn’t mean you will not get approval again.
When it comes to your business plan and financials, providing complete transparency is a great way to build trust with your processor.
What will separate your business from competitors is that your business model will be optimized to not only survive in the current market but also thrive.
We will be glad to help you in getting a good merchant account for your business.
Feel free to get in touch, we’ll be glad to hear from you!
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