31July

3 Summer Payments Challenges for the Online Travel Market

  • Posted By: tandem11
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It’s time for summer vacation and relaxation! For online travel agents, this time of year is the opposite of relaxing. Along with the stress of coordinating travel plans for vacationers, these common payments challenges can cause an interruption in business:

CNP Fraud for Online Ticket Purchases

Card-not-present (CNP) fraud is a challenge for any online business, but it has become highly prevalent for online ticket sales. Europol, the law enforcement agency for the EU estimates that the airline industry loses $1.3 billion a year from CNP fraud. A payment processing partner with fraud protection tools can help travel agencies avoid online CNP fraud.

Rise in Alternative Payment Methods Worldwide

Today, travel is accessible to more people than ever. International and domestic travelers spent a total of $683.1 billion in 2016, according to the U.S. Travel Association.

With the globalization of travel for leisure and business, people are demanding a variety of payment methods. For example, eWallets are gaining popularity in the Asian market, and are expected to dominate the alternative payments market this year.

To avoid losing business in markets like Asia, travel agents need to be able to process multiple forms of payment.

No More Card Surcharges by Travel Companies

By 2018, surcharges for using credit or debit cards will be prohibited. This is a plus for consumers, but a disruption for travel agencies. A tactic used by most travel companies is called price dripping. A seemingly cheap flight is posted online, but by the time a user gets to the checkout stage, add-on fees and surcharges bring the total to a much higher price. With this new law, travel agencies will need to approach pricing in a whole new way.

Your Payment Processing Partner During Peak Travel Season

You need a payment processing partner who can seamlessly implement new, secure payment options without disrupting business. Learn more about how Tandem Innovative Payment Solutions helps companies generate and protect their finances through payments processing. Call us at 864-672-1570.

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