Travel Club Merchant Account: Industry Guide.
The travel industry is booming at a very high speed. Many predict that the industry will reach a couple of trillion dollars in the next decade. This is a golden opportunity for travel clubs. Nowadays, individuals seek exceptional travel experiences and demand pre-planning. Travel clubs make the experience better by offering exclusive benefits, discounts, and activities. Travel clubs also offer deals on flights, hotels, and packages that are rare to find. Some also provide extra services like concierge and luxury accommodations.
The contribution of such travel clubs is phenomenal. To make their services available to the public, they need reliable payment solutions. Businesses can process local and global cards with specialized merchant accounts.
The QuadraPay content team has created this guide. It provides detailed insight about all aspects related to travel club merchant accounts. You will be able to get answers to your questions about travel club payment processing. Let’s begin.
What is a travel club merchant account?
A travel club merchant account is a specialized credit card processing account. It allows travel clubs to accept credit and debit card payments. It benefits all travel clubs, from discount and timeshare to adventure, RV, and camping. These accounts support high-value, recurring, and multi-currency payments.
Why Do Travel Clubs Need a Merchant Account?
Businesses need merchant accounts to accept payments, but travel clubs have extra needs. Let’s explore a few of these.
Better Customer Experience: We are living in an era where experience matters. Customers aren’t concerned about spending money, but they want a better shopping experience. With the right merchant account, you provide travelers a smooth payment experience. A good solution should accept various payment methods, like cards and wallets.
Global Reach: With the right merchant account, travel clubs can accept payments from customers worldwide. Then they can use the funds to pay for the required vendors to get the travel experience set up. An international merchant account eliminates transaction barriers and helps travel clubs grow.
Recurring Revenue Opportunities: The industry is growing, but the competition is growing as well. It is important for travel clubs to offer flexible payment modes to their customers. This includes allowing the customers to make recurring payments. This way travelers can book bigger packages and make payments on a monthly basis. As discussed above, the specialized solution comes with a built-in recurring payment facility.
Fraud Prevention: Travel clubs, agents, cruises, hotels, and vacation rentals are always the target of fraudsters. These businesses face significant challenges because of fraudulent online transactions. Fraudsters use stolen credit card information to book travel and related services. A specialized merchant account uses advanced security features such as encryption and tokenization. This reduces the fraud risk.
Improved Cash Flow: Most acquiring banks allow travel clubs to get access to the funds the same day or the next business day. This rapid access to funds improves the cash flow. Merchants can use the funds to make payments to vendors without delay. This increases the financial stability of the travel club.
Types of payment solutions for travel clubs
Previously, travel clubs solely functioned through physical locations. Today many clubs operate via websites and mobile applications. They should choose a payment solution depending on how they operate. Below is a list of some of the most popular payment solutions for travel clubs.
Online Payment Solutions
The online payment system integrates with the website of the travel club. Members can make payments via the internet. Many payment gateways allow merchants to adjust the look and feel of the checkout page. Some may even allow adding the travel club’s logo. This way, the hosted payment page matched the club’s branding.
Retail Payment Solutions
For travel clubs that operate through physical locations, there are retail card terminals. These credit card readers can integrate with your existing POS system. With these devices you will be able to accept face-to-face payments. Some travel clubs host events or have pop-up shops. Compact credit card readers are available for such needs. You can also carry these to trade shows or travel expos.
Corporate and Business Travel Payment Solutions
Corporate travelers are a big target segment for travel clubs. These clients have their special requirements. Travel clubs that focus on corporate clients can use B2B credit card processing. With B2B credit card processing, travel clubs can accept business credit card payments. This payment solution allows companies to book team travel for employees.
KYC for Travel Club Merchant Accounts
KYC, or Know Your Customer, is a process that every business must go through. This is to ensure compliance with regulatory standards. For travel clubs operating as merchants, they are also required to undergo KYC checks. This is to avoid illegal activities and stop money laundering.
The travel club merchant must submit copies of business and personal documents. The payment service provider verifies the authenticity of documents provided by the merchant. The payment service provider generally runs a credit check. Sometimes they may also check other public records.
Business Identification: It includes the travel club’s business registration documents. An LLC certificate or company house documents may be included. The payment service providers want to ensure that they are working with a valid business. Depending on your country and business structure, the required document may vary.
Owner/Director Identification: The payment service provider will need government-issued photo IDs. These can be passports, driver’s licenses, or any other similar document. They will also need to verify the proof of address for the directors and UBO.
Bank Account Information: Only the applicant company’s bank account can receive funds. For this, the merchant must share a letter from the bank confirming the bank account details. Some payment service providers also accept voided checks.
Frequently Asked Questions About Travel Club Merchant Accounts
How Do I Choose the Right Payment Processor?
Identify a set of processors that are already working with travel club businesses. Working with an industry-experienced processor helps avoid many potential issues. These processors understand your daily transaction challenges. You’ll save time explaining your needs. Specialized processors may have already adjusted the system to meet your industry’s requirements. These processors may also offer better pricing than other providers.
Shortlist a few processors based on the pricing comparison. Use your right to negotiation to get even better deals. Check if the processor can integrate with your website or booking platform. Also ask the processor how excellent their customer support is and if they provide 24/7 support. This way you will be able to find the right payment service provider for your travel club business.
Are Travel Club Merchant Accounts Expensive?
General payment service providers offer standard pricing to merchants across all industries. This means that they charge the same fees for a merchant who runs a jewelry store or a travel club. Each business’s unique needs and challenges do not factor into this fixed pricing. Working with generic service providers may result in higher fees for a travel club. Specialized processors can offer better prices and understand the industry’s requirements.
We want to emphasize that merchants should focus on both pricing and service quality. Travel clubs generally deal with high-ticket transactions. If you pay low fees but get poor service, then you are at risk of losing high-value transactions.
A failed or delayed transaction can cost more in lost revenue than you will save by saying yes to lower fees. Choose a processor that offers you affordable services without compromising on quality.
What About Chargebacks?
Fraud is prevalent in the travel club industry. It is important for merchants to be cautious about such instances. No provider, specialized or regular, can guarantee zero fraud. Fraudsters constantly use new techniques. Working with a top-tier provider assures you that they will provide you with a secure system.
QuadraPay’s payment service provider partners use tools that help reduce fraudulent transactions. Many of these providers incorporate an optional service known as chargeback alerts. Every time a dispute arises, this service notifies the merchant. This service provides a window of opportunity for the merchant. They can communicate with the customer to send a refund. Providers offer a platform to easily contest chargebacks with required documents.
Tip: Travel clubs should keep the proof of service delivery and merchant receipts for at least 1 year. Many card companies allow their members to dispute charges for up to 12 months from the date of sale.
How Long Does It Take to Set Up a Merchant Account?
If the merchant has all required documents, account approval takes 3 to 5 business days. Delays happen if KYC documents are missing, the website isn’t ready, or queries go unanswered. The solution to all these issues is to connect with the QuadraPay team. We educate merchants on required KYC documents and website compliance to avoid delays. Our aim is to get the accounts approved within 3 to 5 business days.
Final words about payment solutions for travel clubs
Remember, a travel club merchant account can be a strategic asset for you. It can help you transform your business. It can help you enhance your overall customer experience and venture into international markets. By choosing the right provider, you can elevate your travel club to new heights. If you have any questions related to travel club credit card processing, then email us. Our email is [email protected].
