Timeshare Merchant Account
May 17, 2023
With the travel industry on the rise again, obtaining a timeshare merchant account is in high demand. Timeshares have a history of high risk in the payment processing industry. Many people who can’t make it to their vacation destination try to reverse payments after realizing they can’t cancel an agreement.
Chargebacks, therefore, are an infamous burden to timeshare companies. In order to reduce risk and keep a sustainable timeshare merchant account, they need to have the proper chargeback mitigation resources. New technology can help you win disputes and identify chargebacks before they happen. For any timeshare business, having a team to help keep your returns and chargeback percentages under the bank’s threshold is key.
Timeshare Payment Processing
As with any online business, timeshare payment processing often demands credit card solutions. Customers prefer getting the perks and benefits that come with paying through credit.
Unfortunately, this means fees for the merchant. It’s no secret that larger companies will have more room to negotiate when it comes to lowering fees and getting better rates.
With proven sales volume and a history of success, timeshare companies can get their rates down significantly. Saving money on every transaction helps you retain profits year-over-year. Moreover, using traditional banks puts your company at risk of losing processing altogether. High risk accounts, on the other hand, are custom suited to your industry.
High-Ticket Sales In Travel
Hotel suites and beachfront resorts don’t come cheap, and high-ticket sales mean greater chances of losing revenue if an order is canceled. This factor causes banks to veer away from travel merchant accounts in general. Historically, the industry has season trends, which makes steady business a challenge for some new companies.
For timeshares, some companies offer different payment models. They may make monthly payments, use subscription models, or provide discounts for annual purchases. In any case, it’s important to keep your transactions steady and predictable.
The Future Of Travel
With new cures and vaccinations being offered to the masses, travel is certain to make a comeback. Presently, 64% of Americans are content traveling domestically, while 54% are looking forward to traveling more in six months. With a better understanding of pandemic protocol, people are likely to target areas that are safe to visit. Beyond timeshares, cruises, hotels, and cities that rely on tourism are sure to see an uptick in visitors.
After the world opens up, people will be looking for new sites and places to explore. With this demand sure to come, the industry needs to prepare their businesses for an influx of new online traffic. That means you should prepare your website for an increase in online sales. Most companies may not know but there are better and worse ways to accept payments.
Echeck vs Credit Card Processing
Regardless, if you’re just starting up or if you have a well-established travel enterprise, you’ll want to save money on payment processing. With electronic checks, you’ll debit a customer’s account directly, which means the funds are guaranteed, faster, and less likely to result in a chargeback. Echecks are how many standard businesses in Europe operate as they are safer and don’t rely on credit transactions, which are considered risky for some cultures.
Credit cards, on the other hand, continue to be leveraged by big banks as a way to incentivize people to develop a credit history. In high risk industries, the premiums for credit card processing run high. Unless you have a surcharge program, you end up paying these fees. Streamline your timeshare merchant account with solutions that are going to save you money, and work for your customers.
Nonetheless, credit cards like travel are not going anywhere, so be sure to stay equipped with sustainable solutions so your customers and business can conquer new horizons.
May 17, 2023 | Merchants | Dustin