Card-Not-Present transactions always are considered as an unlikely transaction, which might turn out to be a chargeback.
In addition to the above, the airline industry has a high-ticket size, which suggests that the price tag is usually pretty high, which again classify this business as precarious and preserved as Red flag for the acquiring banks.
The next perilous peril after chargeback is the high priced chargebacks cases.
Keep in mind that the banks calculate the risk based on “What if” factor; for example what if the processed transaction turns out to be a chargeback or what if these transactions are converted into refunds?
Lets say, a traveler buys a ticket for $350, which will be considered as a high-ticket size by any traditional Bank.
The customer makes the payment online by his/her debit or credit card and such transaction will be marked as “card not present transaction” and the traditional acquiring Bank will eventually settle the fund to Merchant’s nominated business bank account in less than 48 hours.
However, after the travel date, the charge is made disputed by the customer or has been reported as fraudulent charge by the customer and the customer wins the dispute then the merchant processing company has to refund the full amount i.e $350 to the issuing Bank. When the acquiring bank goes to take the funds from the merchant’s bank account they discover that there is not enough funds in the account to cover the refund. In that case, the Merchant account processing company gets responsible for paying the customers ticket and gets liable for the refund.
If your business is tiered in the high-risk category then you are more likely to face challenges with the underwriting process.
The underwriting process might take more than 2 days because you might be required to send extensive documents which include tax returns, corporate filing paperwork, many months bank statements and a good processing history.
You can also expect a higher merchant discount rate than the normal 2.9%
We sincerely try to make the underwriting experience seamless and as we specialize in working with high risk merchants like your business; we have multiple acquiring banking partner that offer merchant account for airline industry and payment gateway for airline ticket booking.
Fill up the Application Online.
Submit the relevant documents.
Your business goes through underwriting
Start accepting payment in 2 days.
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