Forum Moderators: buckworks
I have approached over 20 companies, starting with the usual suspects, like WorldPay, etc, down to whoever comes on the search engine when you type "high risk merchant account" but everyone said no.
Any suggestions will be appreciated!
Thanks in advance.
Why would hotel bookings be considered high risk?
it's high risk for booking agents / travel agents etc, but not so bad for hotels etc
people make bookings and never turn up, then just charge back - the booking agent has already paid the hotel - the booking agent suffers, not the hotel
people have bad holidays, sometimes caused by the hotel, sometimes by other factors like flights being delayed etc - quickest way to claim compensation is by chargeback - the booking agent suffers again
hotels get flooded / have fires / etc - quickest route to compensation is by chargeback - the booking agent suffers, not the hotel
same applies in any business where you take the payments for another company - think tickets for music / sports events, seminars, etc etc etc
booking agents etc always get hit the hardest - by the time the chargebacks come through, the booking agent has the money and may have already paid the hotel etc - and if they don't have the money to repay the chargebacks etc, the merchant provider is left to pick up the bill - hence their reluctance to deal with booking agents - some booking agents simply give up when the first chargebacks come in .......
if you own the hotel etc, it's not so much of a problem - you're only responsible for hotel problems, not for the flights etc, so the risk of chargebacks is lower - also, you're not going to close down because of 2 or 3 chargebacks ............
most agents have cancellation charges for no-shows, usually in TOS and legitimate.
"the booking agent has already paid the hotel"
Very often the booking agent has only collected a deposit"
"people have bad holidays, sometimes caused by the hotel .."
Are you saying that if John Doe's expectations were not met by the hotel's service he is going to give himself a refund?
He has already checked in, signature on file .. he's going to claim someone else used his card or .. you're joking, right?
most businesses have all sorts of terms and policies, but they are next to worthless when a chargeback comes in
>>Very often the booking agent has only collected a
>>deposit
then the agent will lose the deposit when the chargebacks come in ......... and get stung with chargeback fees .....
>>Are you saying that if John Doe's expectations were
>>not met by the hotel's service he is going to give
>>himself a refund?
more or less
goods or services not being as expected / as advertised etc is a legitimate reason for chargebacks and is abused by lots of people
>>He has already checked in, signature on file .. he's
>>going to claim someone else used his card or ..
>>you're joking, right?
"i didn't place that order" is not the only reason for chargebacks - look up a list of chargeback reasons .............
then the agent will lose the deposit when the chargebacks come in ......... and get stung with chargeback fees ..... "
I'm wondering if you really understand what goes on with hotel booking agents. Most will have a contract with each hotel to cover these situations.
About the only time a booking agent is on the hook for a deposit is if the user is a no-show, and then it's 1 day's rate.
too many people start in the travel game because it seems like a good idea at the time - then when the hassles start, it's too much hassle and they quit - the merchant provider picks up the tab
