Travel Merchant Account Overview
Most travel agencies ask the same question: “Why is Travel called high risk?” and “Why my application is denied?”. The answer is very simple. Travel is a very dynamic business. In many cases a travel agent takes payment as a third-party. A travel agent may charge a customer for a hotel stay, vacation package, cruise, airline ticket and so forth. Any change in such tickets, that is sometimes uncontrollable by the merchant, is making the merchant liable for a chargeback.
Today, many travel agencies do not charge airline tickets, hotels and other travel fees on their own merchant account, but rather, charge it directly through the airline or travel provider. This method is well respected by many payment processors, but others still stay behind with conservative approach and try to avoid travel agencies and other travel related merchants.