Does anyone have details of Merchant Facility Providers that are actually providing services to smaller companies in the Travel Industry. We are presently using Voice Commerce who presently retain 5% of our takings for 6months. I understand their terms will be changing next week and may look to retain 10% which could make cash flow tricky! We are now a very successful Tour Operator that has grown hugely in the last 3 years and takes just over 60% of its taking this way. As we do primarily tailor-made holidays, we dont want to integrate the payment system into our website, we just want a virtual terminal.
Having spoken to a another Merchant Facility Provider yesterday, it seems like Tour Operators and Travel Agents are now being seen as very high risk - the Bank they deal with are bringing this in next month and will therefore not even ask me to submit an application as they wont even consider it.
We actually have a very good record - we have never had to do a refund for a cancellation so this is a little disheartening to be lumped together with companies that are not doing as well as us.
Any help would be greatly received.
A solution would be to have your own merchant account (e.g. with a company like Barlcaycard).... as you have TOPP that should be possible. That would only be a few % (e.g. 2-3), and probably retention for 6 weeks or so (rather than 6 months)
Re taking payments for tailor made tours - I agree you don't have to take the money "online" as part of the online booking process (besides, at that point, often the final product being booked isn't known, so the price isn't set yet, so you can't take the full or deposit payment)....... BUT what you can do (e.g. with systems like our own TourCMS) - is send an email based payment request AFTER you have priced up the tailor-made tour - the customer then gets a "if you like this quote / itinerary please pay your deposit"- and a web link - which takes the customer to a web based payment page - money goes into your bank account (merchant account) etc etc..... nice smooth process that works great for tailor-made tours....
Not trying to pitch TourCMS (we pay for the running of these forums) just pointing out that online payments for tailor-made tour companies are actually increasingly popular..... but doesn't mean you have to put the payment system into your initial booking process...
Our present arrangement is organised through TOPP so I guess it is a group arrnagement. I wil give Barclaycard a call and see what happens.It seems to be a worrying development called stifling business!!!
Thanks for the information re TourCMS - I might well go down that road.
Best of luck with following the route suggested by Alex.
If you find it difficult to obtain your own merchant facilities through Barclaycard direct then we (PTS) may be able to offer an alternative through our business model.
Due to the type of financial protection we provide to our members (client/trust account) we have a strong working relationship with HSBC which allows us to provide online merchant facilities to members that use our type of financial protection. We currently have a 100% success rate of gaining merchant facilities for our applicants (this also includes new start ups)
It is an option for you to resolve your problem but it would mean changing the method of protecting your clients funds which may (or may not) work with your already efficient business model.
If you have any questions please feel free to ask me.
Yes, the contact at First Data would be very helpful- if you can let me have that, that would be much appreciated. I have just spoken to HSBC (we have our bank account with them, with an extremely healthy balance) however, they will not take on anyone in the travel industry as they deem us to be high risk - talk about getting with the same brush!
I understand perfectly. If he would prefer, just send the details to me at email@example.com.
Thanks Matt. Got them!
May be worth you having a quick chat with TOPP again to see if any other options as I know people who had it with merchant facilities with either Streamline or Barclays merchant facilities (and that was what we were discussing with TOPP when we looked at moving over to them). It was only for tour ops (did not cover agent business) but assuming you don't do much agency sales. Do share if they say anything interesting!
As Alex says they may want to hold back 6 weeks which is better than 6 months, but you'd have to make a call on whether waiting for 5-10% for 6 months is better or worse than 100% for 6 weeks.
Afraid there's no point comparing individual businesses, they don't care. Since (it seems to me anyway) the ATOL scheme effectively expected the credit card industry to underwrite the travel industry, it's too risky for them. And they don't want to go into the ins and outs. I've heard worse stories, e.g. company trading over 10 years without a single chargeback etc having 100k held back.
Sue, how did you get on with First Data? Did you have similar to Nick (below)?
We are now having major issues, despite being a small profitable bonded successful ski company who are also with Voice Commerce we have been told that as RBS have bought them out (or taken a stake) they are trying to withdraw from the travel business. Thus we approached First Data who have just come back and said that they will only take us on if they retain 35% of the takings until they get to a total of £225,000 I though they were joking at first but they were not! How would a business survive?
We have never been in debt and employ 35 people who will all be made redundant if we cannot get merchant facilities so If anybody has any suggestions I would also be grateful - I do wonder what David Cameron would say!