TRAVEL MERCHANT ACCOUNTS

Payment processing for OTAs, charter, timeshares, and travel clubs

BoazPay places travel businesses with acquirers that understand future deliverables, refund cycles, and supplier risk — the three reasons most processors classify travel as high-risk.

No application fee · No setup fee · Decisions in 48–72 hours

The Challenge

Why Travel & Hospitality is Considered High-Risk

Future Deliverables

Customers pay months in advance for trips they may cancel — creating long-tail chargeback liability that standard risk models can't price accurately.

Supplier Risk

If a supplier (hotel, airline, tour operator) fails, merchants face mass chargebacks for services they sold but can't deliver — a risk most processors don't want.

High Average Tickets

Travel transactions often run $500–$10,000+ per booking. Each chargeback represents significant financial exposure to an acquirer.

Seasonal and Force-Majeure Spikes

A single weather event or geopolitical disruption can trigger thousands of chargebacks in a week — a scenario mainstream processors don't have reserve structures to absorb.

Accepted Sub-Verticals

  • Online travel agencies (OTAs)
  • Tour operators and DMCs
  • Charter and private aviation
  • Cruise resellers
  • Vacation rental platforms
  • Timeshare resales and exits
  • Travel clubs and membership programs
  • Group travel and event-based travel
  • Travel insurance resale

Currently Not Supported

  • Unbonded operators in regulated markets (e.g., ATOL in the UK without certification)
  • Refund-recovery scam operations
  • Timeshare-exit operations without proper licensing

Typical MCC Codes for Travel & Hospitality

MCCDescription
4722Travel Agencies
4511Airlines
4411Steamship / Cruise Lines
7011Lodging
7012Timeshares

MCC assignment is at the acquiring bank's discretion. Your BoazPay account manager will confirm your MCC during underwriting.

Chargeback Rates in Travel & Hospitality

Typical industry rate: 0.5% – 1.5%

Travel chargeback ratios typically run 0.5%–1.5%, with seasonal spikes. BoazPay enforces clear cancellation and refund policies, requires authorization holds vs. immediate capture where appropriate, supplies real-time chargeback alerts, builds reserve structures that match your supplier-payment timing, and provides representment support for the highest-volume dispute categories.

How to Keep Your Rate Low:

  • Use authorization holds rather than immediate capture where booking lead times allow
  • Enforce clear cancellation and refund policies at checkout and in confirmation emails
  • Build reserve structures that match your supplier-payment timing to avoid cash flow gaps
  • Use pre-dispute alert services to catch cancellation chargebacks before they are filed

Required Documents

  • ID for each 20%+ owner
  • Voided check
  • Three months of processing statements
  • Business formation documents
  • IATA/ARC accreditation where applicable
  • Bonding certificates where required (ATOL, SAFI, etc.)
  • Terms, refund, and cancellation policy on the website

Approval Timeline

Most travel applications decision within 48–72 hours. Cruise resellers and timeshare structures take longer due to enhanced supplier-risk review.

Indicative Rate Range

Typical travel discount rates range from 3.50% to 5.95% plus $0.20–$0.35 per transaction, with rolling reserves of 5%–15% sized to your supplier-payment timing. Future-deliverable products carry higher reserves than same-day services.

Your custom quote depends on your industry, volume, and history — get a free assessment in 60 seconds.

Relevant Integrations

Direct APIHosted payment pagesSabreAmadeusTravelportCustom back-office integrationsAuthorize.netNMIUSAePayBoazPay Gateway

Travel & Hospitality Payment Processing FAQs

Ready to Apply for a Travel & Hospitality Merchant Account?

No application fee · No setup fee · No long-term contract

Questions? Call +1 (602) 812-0363 or email info@boazpay.com

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BoazPay LLC is a registered ISO/MSP of its sponsoring acquiring bank.

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