Duane Roberts
Introduction –
One of the most important things that you should know is that, a timeshare merchant account provides travel firms with the capacity to accept the payments online. From the viewpoint of banking, firms that provide a timeshare services are known as high-risk and they need custom merchants accounts. Learn more about, time share merchant account and know more. There are several timeshare firms that accept the credit cards as their main pathway of getting payments. As any online firm, this is also a kind of preferred payment method for the consumers. Besides all of that, having the capacity to accept several forms of payments is the cornerstone for online businesses. And, for your information, within the travel sector, there are a number of types of payments that the buyers have used.
MOTO Payments and Timeshare Industry a High-Risk –
Besides all of that, historically, cheques and MOTO payments were normal for travel agencies. For instance, several firms were set up to get payments through the phone after several calls and shared data. Besides all of that, as the technology altered the payments world, cheque payments became e-cheques which serves a same purpose but are done through online channels like wire transfer. If you operate a time-share connected business, you may have experienced that the thwart of denied merchants account or the same. That’s because most of the payment processing firms think that a timeshare merchant account high-risk. Besides all of that, several traditional fiscal institutions reject to work with high-risk firms like time share, fantasy sport and so on. Reasons why time share industry is considered as high-risk is because of recurring bills. Timeshare mostly set up a subscription model and the clients that take part in the timeshare are charged for their share or part frequently.
High-Ticket Transactions and Other Reasons –
It means that most of the transactions are on the card not present or not their basis, which in turn increases the risk of chargebacks ratios. Besides all of that, high chargebacks ratios make the timeshare merchant accounts high-risk. Timeshares are mostly costly purchases as the places like beach resort and costly condos in the tourist destination are common, but not so common for a common person to buy or book. Most of the transactions made by time share firms are large transactions and it means that perchance if they are cancelled, the merchants and merchants account provider lose a huge amount of revenue. This is another reason why the traditional banks do not like to work with travel and timeshare firms. Then, comes the issue of multiple owners or customers. Every property in timeshare is the paid one for by several people, rather than having a single timeshare owner. When a merchant account providers process credit cards for timeshare monthly payments, as they are dependent on several cards being approved. Due to all of these issues the merchant services and the payment processing firms most of the time think and choose not to work with such type of industry.
