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TRAVEL INDUSTRY MERCHANT ACCOUNT
The transportation business is a highly
lucrative business. Unfortunately,
getting a merchant account in this
business is a difficult task. There are
only very few account providers who will
take the risk. Most of the providers are
not interested in this industry because
of the high risk involved. This business
comes under the high risk business
category.
Finally, after some digging, when you
find an account provider you will mostly
be faced will several restrictions for
the services they offer to you. For
example, the merchant account providers
will only approve transactions dealing
with hotel stays, car rentals and
commissions. They will not agree to
accept for airplane tickets, tours and
cruises.
The most unfortunate part is that the
account providers will not tell you that
the cruises, tours and plane tickets are
not covered in the services until a
customer begins to complain and then
starts asking questions. That is not a
good way to do business but in reality
that is how it is done. The merchants
should be given a clear list of services
which they are entitled to use and pay
for.
Before the transaction is going to take
place, the merchant must have the
approvals for the particular amount.
Some account providers are willing to
approve all the services; however the
merchant will have a limit for those
kinds of transactions.
When a merchant applies for and gets a
credit card merchant account for his
travel business, he will find out that
there are several hidden fees attached
to his merchant account. Such fees may
include batch fees, annual fees, monthly
fees and others which are not listed
till the first months statement arrives.
The next disadvantage is when the
merchant will not reach his minimum
target for the month then he will have
to pay service fee. Also, be careful of
merchant providers who try to sell
merchandise not required by you. First
they sell it to you and then you will be
locked in an expensive deal.
Beware of the “Teaser Rates”. These are
only temporary rates that are used to
attract the merchant. Later the rates
will be raised and you will not be able
to afford it. Also, since the service
rates are very low you should look for
any sort of penalties associated with
the offer.
The greatest loss for merchants till
today has been through hidden fees.
Therefore, be very careful to look
carefully into the fine print before you
sign the dotted line. One of the most
important services that should be
offered by the providers is the customer
service facility. This service is
generally neglected by the providers and
the merchants, while inquiry, and then
later regret it.
Therefore, look for an account provider
who offers you good quality services.
After all, the merchants are paying the
merchant account providers for all the
services offered by them. If they cannot
provide the service or do the specified
work on time, then you should look for
another service provider. |
