The Whole Truth – What You Need to Know
About Travel Industry Merchant Accounts
by Jerry Miller
article continued from
First and Foremost, most merchant account providers will not approve
Travel Merchants. Of the companies that will approve Travel Merchants,
several will not approve ALL types of Travel Industry charges. They
will only approve charges for commissions and fees, car rentals,
and hotel charges. They will not approve cruise packages, land tours,
and airline travel. Also these companies will not always tell you
they do not approve these sales and will instead hold your money
in limbo after the fact until these customers have completed travel.
Many of our current customers have come to NTC with this issue of
held funds and we have helped them quickly recover their held funds
and start accepting ALL Types of Travel Sales. NTC allows the travel
merchant the ability to accept most if not all Travel related sales.
National Transaction Corporation (NTC) also does not limit the
size of the transaction. Travel professionals can process single
sales for $1,000, $5,000, $10,000 or more. The merchant does need,
however, to be approved for the proper monthly processing limit
to do so. Many other companies do limit the size of each transaction
typically between $200 to $1,000 for each sale.
Another pitfall with many merchant account offerings is hidden
fees. Monthly Gateway fees of $15 to $50 per month, Annual fees
of $50-$100 per year, Batch fees, and many other hidden charges.
Also companies have monthly penalties if a merchant fails to process,
or processes a low volume in a given month. This penalty known as
a monthly minimum can range from $15 to $50 per month! We have had
merchants come to our company that were paying $50 to $150 per month
with their previous provider in months where they had not processed
a single sale! We do NOT; at NTC have any of these hidden fees.
If you do not process sales in a given month then we only charge
you a $10 service fee.
Many merchant account companies also try to sell expensive credit
card equipment, either for purchase, or under a 48 month Non-cancelable
lease. Most of this equipment ends up costing the merchant $500
to $1500 or more! As Travel professionals most sales are over the
phone and therefore an expensive piece of equipment is not even
necessary. We at NTC offer FREE software that serves as a credit
card machine on your computer. You can print credit card receipts
straight to your computers printer. This free software has many
benefits in that it gives the Travel agent one year of transaction
reporting history as well as a more comprehensive way to enter transactions.
Our Transaction software will fit the needs of 95% of all travel
merchants, but we have several other solutions including very inexpensive
terminals if the merchant so desires.
Another pitfall to keep an eye on is what we call “Teaser
Rates”. These are rates that are offered to the merchant in
order to entice or “Tease” the merchant in to doing
business with a company. These are low rates that a company offers
temporarily for several months and then increases once the customer
is settled in. Beware of these very low rates they usually have
penalties attached to them. We can look at your current statements
and evaluate and point out these hidden penalties. Our company prides
itself on offering real rates that are competitive in the marketplace.
We do offer differing rates based on processing volume discounts.
But we do not try to mislead our merchants in any way.
All of these different hidden fees can add up to $500 to $1000
or more over the next five years. So do not be taken in by companies
that offer no set up fee in exchange for all these additional fees.
Typically NO SET-UP FEES means other hidden charges exist, we will
assist the merchant in noting all other fees that other companies
may be charging.
But approvals, pricing, and fees are not the only things to be
aware of. Customer service is possibly the most important issue
to a travel agency. How quickly do you receive your deposits? We
provide your money to your bank electronically within 2 business
days as cleared available funds. How quickly can you speak to a
customer service representative? We answer our phones live at NTC,
you are not sent to another country or put on hold for 20 minutes,
nor do we have an endless loop of menus you need to go through to
reach a customer service agent. I also provide all my customers
with my cell phone so they can reach me anytime customer service
is not providing them answers they need.
Also, with every approved account we offer an online gateway that
allows merchants to look at their account history including their
last 6 months statements and their last 30 days deposits, as well
as several other key reporting features. This gateway is offered
at no additional cost to the merchant.
We have well over 25 years experience in the payment processing
field as well as more than 400 Travel agents and tour operators
as current customers. We not only understand the needs of the Travel
Professional, but also understand how to solve the problems and
issues as they may arise in the day to day operations of a travel
business in regards to credit card sales.
For this article we have also put together a list of frequently
asked questions as well as a list of the different reasons a Travel
Professional may want a Merchant Account,. If we can help you in
any way please call me, Jerry Miller at 888-996-2273, or email me
at jmiller@nationaltransaction.com.
Frequently Asked Questions
1. What are the basic charges on the Merchant Account?
A: The Merchant pays 2.49% and .25 / transaction. There is a one
time $99.00 set-up fee which includes free PC based software which
will be used to process all of the credit card transactions. There
is also a $10.00 per month service fee.
2. This PC Based software, how does it work, what does
it do?
A: It replaces your conventional credit card machine and allows
you to type in your customer’s credit card information, card
#, and expiration date. You can also look at a transaction history
and settlement deposit history.
3. How easy is it to set up this software?
A: Very simple, you can usually install the software by yourself
but if you have any questions during set-up just call our office
and our service representative will assist you in the set up and
training, it takes about 10 minutes. The program calls out over
your phone line through your DSL, Cable, or computer modem to a
toll free 800# for credit card authorizations.
4. Can we use online internet processing or a credit card
machine?
A: Yes, depending on your needs, we supply support for all different
types of requirements, but I usually suggest this software for over
the phone orders.
5. Can We Access our account information over the internet?
A: Yes, for NO additional fee you can look at the last 6 months
of processing statements and the last 30 days of batch deposits
we made to your checking account for credit card sales.
6. What do you require to set up an account?
A: You will need a voided check of the business account, and we
ask you for basic information on the agency and the principle owner
/ owners. We also ask about the type of travel you offer, when customers
pay, and basic marketing materials such as a business card or a
website. It is very simple.
7. Do I need good credit to set up a merchant account?
A: We do ask for the signer to have good credit. But if the principle
owner does not have good credit then we will accept a co-signer
with good credit. The co-signer does not need to be an owner of
the company.
8. How long does it take to get set up?
A: Once we get your necessary information it takes about 3-5 days
to approve the account and overnight the software to you.
9. Once I take a credit card from my customer how long
does it take to be paid?
A: It takes 2 business days to receive your money; it is transferred
directly in your checking account as cleared funds.
10. What credit cards can I accept under this program?
A: Visa, MasterCard, American Express, Discover, Diners Club. American
Express is 2.75%, and Discover is 2.25%, they offer different rates
than Visa / MC
11. What type of sales can I charge on my merchant account
with your company?
A: Many Types, you can charge commission and fees, plus all types
of travel, hotel, car rental, cruises, tour packages, group packages,
airline tickets, day tours, and deposits to name a few.
12. When do we pay the transaction fees and monthly fee
to you?
A: The Rates and Fees are all billed electronically out of your
checking account at the beginning of the month. Please note that
this makes your accounting for the deposits easy because your batch
totals will match your bank deposits.
13. What will I be charged if I have no Visa / MasterCard
Sales for the month?
A: You will only pay the $10 customer service fee, we have no other
annual fees or hidden monthly charges.
14. What do I get for the $10 monthly customer service
fee?
A: You get a statement mailed to you once a month reviewing your
deposits and charges. You get online access to your account for
all statements for the last 6 months as well as the last 30 days
deposits. You also get our 24/7 customer 800#, and a personal account
representative…we answer our phones directly there are no
menu buttons to push.
15. I have seen rates out there as low as 1.59% your rates
are 2.49% that seems high, how do you explain this?
A: The rates you see for 1.59% are for card swiped rates where
the customer is at your location and you swipe their card. Visa
/ MasterCard charge a higher rate for cards where the customer is
not present and orders are taken over the phone, fax or internet.
Also rates can be lower than 2.49% because companies are offering
an introductory rate to get your business, and they will mark it
up in a month or two. NTC does not want to trick their customers
like this. Also most companies will not approve travel accounts
so their rates do not even apply to your type of business.
Benefits of a Merchant Account For Travel
Agencies
Bundled Travel Packages with Additional
Margin
Last Minute Travel
Close Business by Collecting Money NOW
Don’t Wait on the Check to Come
Group Travel – Group Discounts
Group Travel – Group Charities / Profit
Collect Commissions and Fees
Airline Tickets / Commissions and Fees
Quicker Delivery of Commissions / Paid in
2 Days
Offer Customer Payment Plans
Collect Deposits Easily
Your Business Name and Phone Number Appears
on the Credit Card Statement
Not the Travel Provider Name
Always Say Yes to Your Customer’s
Choice of Payment
Please Contact Jerry Miller For More Information
at:
1-888-996-2273
jmiller@nationaltransaction.com |
