How to Choose a Travel Agency Merchant Account

What Is a Travel Agency Merchant Account?

A travel agency merchant account is a specialised account that allows travel businesses to accept and process payments. Unlike standard business accounts, it connects travel agencies to the card networks and financial institutions needed to complete transactions. When a client books a trip and pays with a credit card or digital payment method, the merchant account provider handles the transaction, moving funds from the customer’s account to the agency after settlement.

These specialised accounts manage the payment processing workflow of authorising, settling and depositing payments while handling the relationship with card networks. A travel agency merchant account must accommodate multiple payment methods, from credit cards to alternative payment methods like digital wallets.

Why Travel Agencies Are Under More Payment Scrutiny 

Travel agencies often face increased scrutiny from payment providers due to several factors. One is the long gap between booking and travel, which raises the risk of chargebacks. Transactions also tend to involve high-value payments, increasing the potential for fraud and chargebacks that can result in significant financial losses. Agencies selling big-ticket items like cruises or round-the-world trips are especially vulnerable to buyer’s remorse, leading to cancellations and refunds.

Online bookings add another layer of risk, as card-not-present transactions generally experience higher fraud rates than face-to-face purchases. Additionally, the travel industry is sensitive to seasonal demand and external disruptions such as natural disasters, political unrest or health emergencies, all of which can impact transaction stability.

Key Features to Look For in a Travel Agency Merchant Account

Certain features prove particularly valuable when selecting a merchant account provider for your travel agency, as they address industry-specific challenges.

Card Acquiring  and Global Payment Support

Travel agencies—particularly online travel agencies (OTAs)—benefit from providers with directly licensed card acquiring. Direct licensing means the provider is authorised by card networks such as Visa and Mastercard to process transactions without intermediaries. This reduces fees, improves support and offers greater flexibility for accepting payments worldwide.

Supporting local currencies is essential, as around 76% of shoppers prefer to pay in their own currency. Features like Dynamic Currency Conversion (DCC) help by displaying prices in local currency while settling in your home currency. Additionally, providers should support regional payment preferences such as e-wallets, bank transfers and cash vouchers, catering to customers who do not prefer credit cards.

Chargeback and Fraud Prevention Tools

Travel agencies are frequent targets for fraud, including card testing, account takeovers and friendly fraud. A merchant account should include layered protection, such as AVS, 3D Secure, velocity checks and machine learning to flag risky transactions early. These tools help maintain your account and reduce the manual burden of fraud reviews and dispute management.

Look at providers like, Rapyd, that have fraud prevention tools designed to support industries like travel. Real-time risk scoring, machine learning models, customizable rules engines and automated dispute management support chargeback reduction and help maintain account stability.

Integration Capabilities

Choose a merchant account that integrates with your existing systems, including booking engines like Sabre and Amadeus and platforms like Travelport or Shopify. Support for Apple Pay and Google Pay is increasingly important, as they facilitate faster checkouts and lower abandonment rates. Solid integration allows payment data to flow directly into your reservation and accounting systems without manual entry.

Responsive Customer Support

Travel payments happen across time zones, so round-the-clock support can make all the difference. Look for providers offering 24/7 access and dedicated account managers who understand travel payment issues. Fast, informed support helps avoid disruptions that could impact your customers and reputation.

Steps to Choose the Right Travel Agency Merchant Account

Finding the optimal merchant account for your travel agency should involve methodical evaluation. Follow these steps to make an informed decision that fits your business.

Assess Your Business Needs

Begin by reviewing your transaction patterns, including volume, average booking size, seasonality and customer geography. Your business model, whether online or in-person, domestic or international, focused on luxury, adventure or corporate travel, will influence your payment requirements.

Consider your growth plans, particularly if international expansion is on the horizon. Prioritise providers with global capabilities early, as switching later can be disruptive. Also, assess your technical resources; some integrations may require developer involvement. This assessment will help you evaluate providers based on your needs rather than broad industry comparisons.

Research and Compare Providers

Build a shortlist of providers with experience in the travel sector. Beware of fly-by-night operations that say they support high-risk merchants. Many don’t offer direct card acquiring and often drop merchants suddenly with little notice. Request detailed rate sheets and compare features such as fees, supported payment types, fraud tools and settlement speed.

Prioritise providers with a stable track record; frequent exits from the high-risk space can leave you scrambling for alternatives.

Pay close attention to reserve policies. Look for processing caps and fees for exceeding them, and clarify liability for chargebacks and fraud. 

Integrate with Travel Systems

Look for a provider, like Rapyd’s with a robust API that integrates with travel platforms and websites. Support for split payments, partial refunds and instalments reflects the complexity of modern travel bookings. These capabilities reduce manual work and improve payment reliability across multiple suppliers and systems.

Common Pitfalls to Avoid When Selecting a Travel Agency Merchant Account

Even experienced travel agencies can fall into common traps when selecting merchant accounts. Awareness of these pitfalls helps you make more informed decisions and negotiate better terms.

Overlooking Hidden Fees

Focusing only on the advertised processing rate can be costly. Watch for extra charges like non-qualified surcharges (often applied to rewards or international cards), gateway fees, batch fees, PCI compliance charges and account maintenance costs. These can add up quickly, regardless of transaction volume.

Ignoring Compliance Requirements

PCI DSS compliance is mandatory for any business handling card data, and non-compliance can result in penalties of thousands per month. Many travel agencies underestimate the technical effort needed, especially when storing card details for future bookings.

Beyond PCI, you may face KYC checks, AML regulations and regional rules like Europe’s SCA and GDPR. International sellers must navigate compliance across multiple jurisdictions. A provider with compliance support can help you stay aligned with shifting regulatory standards.

Choosing Based Solely on Price

Cheaper providers may cut corners on fraud protection, customer support or payment method coverage. This can lead to higher chargeback rates, lower authorisation rates, limited reach and disruptions when issues arise.

Instead of focusing solely on transaction fees, evaluate the overall value.

How Rapyd Provides Payment Solutions Built for Global Travel

Rapyd Collect makes it simple to accept payments from one country or 100. With card acquiring and support for local payment methods, you can create smooth checkout experiences for travellers and capture more revenue.