The travel industry is among the world’s biggest industries. The tourism and travel industry has a huge impact, including: transportation, lodging, attractions and entertainment. However companies do struggle to procure services which are crucial to operating. Why? Conventional lenders believe the travel and tourism industry”too risky”.
Generally speaking, the industry is well known for producing some of the greatest levels of credit card fraud; this is true in transactions. Thus, most merchant accounts for travel industry won’t provide merchant services to those agencies. Because they lack processing history Specifically, startups struggle to secure merchant services; this leaves chips not able to evaluate whether the company will implement risk management processes that are adequate to minimize fraud.
What Makes a Travel Agencies High-Risk?
The cost involved in excursions holidays and flights make banks worried. The reputation of large quantities of chargebacks of the industry and cost cancellations make it tough to find institutions to work with these retailers. (A chargeback occurs when credit card suppliers demand that your enterprise refund the reduction of a fraudulent transaction.) These are few of the frequent reasons.
How to Effectively Manage Credit Card Risk
By developing risk management processes, your company enhance its credentials and can reduce the risk of vulnerability. Employees are trained to deal with such processes and when these practices are followed on a consistent basis, they can be extremely effective. Consider the following list of examples:
Review Large-Value Bookings for Fraud. Transactions can improve your business’ vulnerability. To mitigate the threat and decrease losses and examine these transactions. Track Key Fraud and know Characteristics. When you track down fraud trades make sure you identify and monitor all important features, such as: passenger name, cardholder name, email addresses, Internet Protocol (IP) addresses and Internet Service Providers (ISP). In addition, you should record trade times, amounts, travel itineraries, airlines, etc..