Running a travel
business means you have to manage clients, bookings, vendors, and payments—all
while navigating one of the most unstable industries in terms of financial
risk. So it’s no surprise that many travel agencies find it nearly impossible
to get approved for a merchant account by traditional banks.
In this article, we’ll
explain why that happens and why turning to a specialized travel merchant account is the
smarter move for your business.
Why Travel Businesses
Are Considered High Risk
To a traditional bank,
the travel industry sets off several red flags. Here’s why:
●
Future-dated services: Travel packages are often booked months in
advance, which increases the risk of cancellations and chargebacks.
●
High ticket sales: Expensive packages raise the financial risk for processors.
●
Frequent refunds: Weather changes, political instability, and personal emergencies
lead to more canceled trips.
●
International transactions: Global payments bring in fraud and compliance
concerns.
These factors place
travel agencies squarely in the high
risk payment processing category, making approval from regular banks
difficult or even impossible.
Why Banks Deny Travel
Merchant Accounts
Even if your business is
legitimate and stable, banks rely on automated risk scoring models. If your
industry code is flagged, you’re already starting from behind. Here’s what they
look at:
●
Industry category
(travel is flagged)
●
Chargeback history
●
Business model (pre-paid
services raise alarms)
●
Credit and banking
history
Rather than take on the
risk, most banks simply reject the application—no matter how well-prepared you
are.
What You Actually Need:
A Travel Merchant Account
Instead of battling with
banks, the smart choice is to apply for a travel merchant account from a provider that specializes in high risk merchant account services.
These accounts are built for your industry, meaning you’re evaluated on real
business risk—not automated rejection criteria.
Providers like Adaptiv
Payments understand the
challenges of the travel sector and create payment solutions tailored to your
needs.
Benefits of a
Specialized High Risk Merchant Account
When you use a provider
that focuses on high risk payment
processing, you get:
●
Better approval odds: You're not instantly flagged and denied.
●
Chargeback tools: Helps protect your revenue from disputes.
●
Custom reserve structures: Instead of full freezes, small rolling
reserves are used.
●
Multi-currency support: Perfect for travel agencies with global
clients.
A high risk merchant account also gives you more control over your funds, better fraud
protection, and access to payment features that traditional processors can’t
offer.
Final Thoughts
Traditional banks don’t
understand the travel business—they only see risk. So if your agency is
struggling to get approved, stop wasting time on banks that will say no.
Instead, apply for
a travel merchant account through
a processor that specializes in high
risk payment processing. It’s faster, smarter, and gives your travel
business the payment stability it needs to thrive.