Airline Credit Card Processing

Airline Credit Card Processing: Industry Guide

An airline merchant account enables airlines and OTAs (Online Travel Agencies) to sell tickets over the internet as well as in person by accepting payments through credit and debit cards. Having an airline credit card processing account makes transaction processing extremely easy for both small and large airline companies.

QuadraPay’s payment processing partners deliver high-quality airline merchant accounts at extremely cost-effective pricing. As an experienced high-risk merchant account provider, we can assure airline merchants that we have multiple processing partners who will be happy to evaluate your application for credit and debit card processing. Our ability to submit your application to various providers and then provide you with the opportunity to choose the most economical one makes us the perfect solution provider for airline merchant accounts.

Why Aviation Credit Card Processing is Considered High Risk

Airline merchant accounts are deemed high risk by acquiring banks due to several reasons. These days, more than 50% of airline tickets are booked either over the internet or via phone. In all these transactions, the card is not physically present with the merchant at the time of booking, making them card-not-present transactions, which are considered high risk by banks. Because the card is not physically present, it raises a red flag regarding the possibility of fraudulent transactions.

Additionally, the industry is susceptible to high chargebacks. It is common for people to cancel tickets for various reasons, although these reasons can be genuine. However, the high cancellation ratio also contributes to making airlines and OTAs high risk when it comes to acquiring. Natural disasters and regional political issues can also result in heavy cancellations, further impacting financial institutions.

We are all well aware of the massive cancellations the airline industry experienced during the COVID-19 pandemic.

The high value of airline tickets also adds to the risk factor. Altogether, these factors make airlines a high risk industry for acquiring banks.

QuadraPay’s partnership with multiple payment processing companies allows us to offer you online as well as retail payment acceptance for airline businesses in over 100 currencies. Our solutions are a perfect fit for your requirements, including in-flight payments as well as airport payments. We have been happily assisting high-risk merchants, including those from the airline industry, since 2016. Our extensive experience and connections with various high-risk merchant account providers give us the ability to provide you with a solid solution that meets your requirements.

Benefits of Airline Merchant Processing

It is a known fact that airlines and OTAs cannot survive without a reliable airline credit card processing solution. There are multiple benefits that an airline can gain if it switches to airline merchant processing services. These include the ability to accept online as well as retail payments. Airlines can accept contactless transactions as well as payments through various mobile wallets. These transactions can be for booking tickets, upgrades, or any other ancillary services.

Transparent pricing helps airlines ensure that they remain profitable and do not incur expensive fees for card transactions. With airline merchant processing, local as well as international transactions are possible. With features like dynamic currency conversion, airlines can display the pricing of air tickets in the home currency of the customer, generating trust and increasing overall customer satisfaction. Our airline merchant processing solutions are powered by some of the best credit card processing companies, providing extraordinary network uptime which results in maximum conversion.

Measures for Security with Airline Merchant Services

Airlines sell tickets worth billions of dollars, making it extremely important for airline credit card processing companies to ensure they implement all the required security measures to ensure secure transactions. Additionally, measures to prevent fraudulent transactions must also be in place. Utilizing various tools help reduce fraud and increase revenue by identifying and stopping risky transactions in real time. Tools such as real-time fraud identification, 3D secure processing, and full compliance with PCI DSS standards enhance the security of transactions.

Various Airline Merchant Services

QuadraPay provides multiple payment services for airlines in association with top-notch payment processors across the world. Let’s explore the key services that we can bring to your business:

IVR Payment for Airlines: Interactive Voice Response (IVR) payment, also known as touch-tone payments, is very popular in the airline industry. Customers often book air tickets by calling the airline’s phone number and then submit their card information to purchase tickets. Although the usage of this kind of technology has reduced, it is still considered one of the important payment solutions for airlines.

Online Credit Card Processing for Airlines: For online air ticket bookings, we offer online credit card processing solutions for airlines. With this kind of solution, airlines can easily accept credit and debit card payments on their booking websites and mobile apps. The solutions also allow airlines to accept alternative payment methods, which increases the conversion ratio.

Retail Credit Card Processing for Airlines: For card-present transactions at places like the airport or travel agencies, we also offer retail credit card processing terminals. With these terminals, airlines can easily accept in-person payments. These modern terminals also support various new technologies, including tap-and-pay, QR code payments, and contactless payments.

Apply Today To Accept Seamless Payment For Airline Services

With many served merchants from your industry type, Quadrapay knows which solution is best for you. Submit us a pre-approval form onto our site, and we will get back to you within 24 hours. We at Quadrapay analyze your application and business requirements. We then forward your application to one of our processor partners and assist you throughout the process. You only need to fill the merchant application form and submit it to us along with set of all required KYC documents. This will assist to have a faster and seamless merchant account search procedure for your airline business.

FAQ Airline & Jet Charter Merchant Accounts

What is the Inflight Payment System or Airlines’ Inflight Payments?

These days, technology enables airlines to accept in-flight payments. With the Inflight payment system terminals, airline companies can easily accept well-known credit and debit cards. These terminals resemble typical EDC machines or credit card swiping terminals but offer advanced features. Various embedded fraud checks help merchants reduce instances of fraudulent transactions.

Additionally, the strict boarding process also helps merchants technically reduce instances of fraud. Airlines use these inflight payment terminals to sell goods and services offered onboard, such as food, beverages, duty-free items, and entertainment.

The profit from only airfare is not something which can keep the airlines going strong all the time. No frill airlines are significant market shareholders, but they also need to make their ends meet. This is why airline companies offer various products for sale on board. These can be earplugs, mp3 players, watches, Perfumes, Imitation Jewellery and Magazines. Flyers can also purchase delicious food items.

What is an airline merchant account, and why do airlines need one?

A merchant account for airlines allows them to accept credit and debit card payments for tickets, baggage upgrades, and in-flight purchases. Due to the high ticket size and chargeback risk, airlines require specialized high-risk merchant account services.

Why is the airline and aviation industry considered high-risk for payment processing?

Airlines face the risk of high chargebacks, large transaction amounts, frequent cancellations, and disputes because of card-not-present transactions. All these factors contribute to the high-risk label of airlines from sponsor banks and payment service providers.

What types of businesses qualify for aviation merchant accounts?

Airlines, private jet charters, helicopter services, Airport lounges, flight training schools, and aircraft maintenance providers can all qualify for aviation-focused merchant services.

What is an air charter merchant account, and how is it different from a commercial airline account?

An air charter merchant account is a specialized payment processing solution for private and corporate charters that generally involves higher ticket size for VIP clientele, unlike commercial airlines that generally process larger volumes of smaller ticket bookings.

What merchant services are available for jet charter companies?

Services include high-ticket credit card processing, enhanced fraud prevention tools, multi-currency transaction support, and chargeback protection facility. These services are especially important for luxury and executive charter providers.

What is an airline payment gateway, and how does it work?

An airline payment gateway is a software suite that enables real-time card-not-present transactions through websites, mobile apps, and booking engines while being fully compliant with the mandatory PCI DSS standards and fraud reduction protocols.

What is the role of an airline payment platform?

The airline payment platform consolidates online and offline transactions, integrates with the airline booking system, and supports regular card processing as well as alternative payment methods. It also ensures real-time reconciliation and reporting.

How do in-flight payment solutions function onboard aircraft?

Inflight payment solutions use specialized point-of-sale terminals that allow the cabin crew to accept payments for food, entertainment, and duty-free goods during the flight.

Can airlines accept retail payments at airports?

Yes, airlines can use retail point-of-sale systems at ticket counters and check-in areas to accept card-present payments with advanced features like EMV compliance, receipt printing, and real-time authorization.

How do airline booking merchant account solutions handle card-not-present transactions?

The airline booking merchant account solutions are designed in a way so that they can support online, phone, and mobile booking. This is done by fully supporting 3D secure, tokenization and address verification system to reduce the risk of fraud.

Can airline payment solutions support multiple currencies and global transactions?

Yes, our solutions are powered by some of the finest acquiring institutions, and they support airline businesses to accept multi-currency payments. The conversion happens by utilizing the dynamic currency conversion feature. Customers see local pricing across various regions while the airline gets the total money of the air ticket booking. In simple terms, DCC allows international customers to see and pay for the tickets in their home currency; it reduces confusion and increases the chance of conversion.

How do airline payment systems handle high-volume and high-ticket transactions?

Payment service providers efficiently manage the risk involved in processing airline transactions, which are generally of high ticket size. Specialized payment service provider offer tailored risk management tools and customizable payment thresholds to reduce transaction risk. Processors also implement rolling reserve and settlement schedules to support large-value transactions.

What are the best payment systems for regional and low-cost airlines?

low cost carriers can greatly benefit if they find a payment service provider that offers them minimum MDR rates, efficient online checkout, mobile wallet support, and automated refunds and cancellations.

How do payment processors for the aerospace industry differ from regular processors?

Aerospace payment processors support B2B payments, recurring contracts, aircraft leasing transactions, and efficient vendor settlement, something that many regular airline payment processors are unable to support. These transactions are generally done via bank transfer, escrow, or B2B cards.

What is an airport payment solution, and who uses it?

Airport payment solutions are primarily used at lounges, duty-free stores, airport parking, baggage handling services, and ticketing counters. These retail point-of-sale terminals accept all kinds of transactions, such as EMV, tap-to-pay and QR code payments.

Can an airport use one platform for all its merchant services?

Yes, there are various omnichannel payment solutions that airports can use through which multiple payment terminals can be managed. With a centralized payment processing platform various touch points across airport operations can be integrated for smooth reporting and unified settlement.

What are the key benefits of using a specialized airline merchant processing company?

Payment service providers that specialize in airline payment processing offer better fraud protection, enhanced global coverage, high transaction approval, and efficient risk monitoring when compared to regular low-risk payment service providers.

What documents are required to apply for an airline merchant account?

The most common documents that airlines must provide include the business license, processing history, passport of the directors, business bank account details, and the website URL. They should also provide the refund and cancellation policy. The underwriters will request additional documents if required.

How long does it take to get approved for aviation payment processing?

The approval of an aviation payment processing account generally takes 3 to 10 business days, depending on the business type, the level of risk involved, and the completeness of documents submitted.

Can airline payment systems integrate with booking engines and ERP software?

Yes, it can be easily integrated into booking engines and ERP software by utilizing APIs. Specialized payment solution providers offer integration with airline reservation systems.

What are the typical fees associated with airline merchant processing?

The fees that are generally associated include MDR, rolling reserve, setup charges, and monthly gateway fees. The rolling reserve is implemented in some case because of the high-risk nature of the business.

What kind of support do airline merchants get from payment processors?

Airlines get round-the-clock support from the payment service provider. Most Airlines receive a dedicated account manager that provides optimum assistance.

Suggested readings

https://www.mckinsey.com/industries/travel-logistics-and-infrastructure/our-insights/airline-retailing-how-payment-innovation-can-improve-the-bottom-line