With rising corporate profits approaching record highs and per capita household incomes increasing since 2012, demand for chartered, private air transportation services is also growing. In fact, the market currently generates revenues of $23 billion and has enjoyed annual growth rates of 2.3 percent since 2012, according to IBIS World.
With such high profits you would think charter jets and private airlines would be miles above other industries when it comes to security and low risk ventures. Unfortunately, this is not the case, leaving many private airlines and charter jet services identified as high risk merchants among many merchant services providers.
Why are Private Airline and Jet Charter Services Considered High Risk?
For most providers, it is solely a matter of risk. Private airlines and charter jets are bigger risks, in their eyes, for the following reasons:
- You conduct high value transactions
- Flights can be delayed, changed, or even cancelled for a variety of reasons
- There are no regular routes or schedules which increases risks for chargebacks
- Scheduling and reservations are made online and in advance, also increasing risks of fraudulent purchases
- Greater risks of chargebacks and cancellations throughout the airline and travel industry
Just think of all the reasons a single flight can be changed or cancelled. The following things can cause havoc resulting in refunds, confusion, and more:
- Weather on the flight path
- Hotels closing
- Conferences or events cancelling or rescheduling
- Business meetings postponed
- Logistics challenges
Any one of these things can result in a chargeback and the world is full of emergencies and other unexpected events that can have the same end results.
What Does it Mean to Be a High Risk Merchant?
- Some providers will refuse to work with you
- Higher setup fees for getting your account started
- Cash reserve requirements that can limit cash flow for your business
- Monthly transaction limits, curtailing the number of credit card transactions your business can process each month—or the dollar amount you can process through credit card processing each month
- Increased scrutiny for your business
The one that is truly troubling for private airlines and charter jet services is limiting transaction amounts since many of your services are high-dollar transactions. Which is why it’s important to work with a high risk credit card processing service that understands the unique challenges your industry experiences and is willing to work with you to help your business grow.
What to Look for in a Payment Processor
When choosing your payment processing partner from a sea of willing candidates, make sure you look for the following features and services:
- Chargeback mitigation programs
- Support for high-dollar transactions
- Flexibility to work with customers in case flights are delayed or cancelled
After all, some things are the nature of the business and no fault of the customer or the airline. Working with payment processors and merchant services providers that understand the intricacies of your industry can help you save money and more than a few headaches along the way.
BankCard Services is committed to helping you grow your business. As a payment processing partner, we offer honest, ethical billing with affordable payment processing rates and flexible terms on a month-to-month basis with no long-term commitments. This helps you meet the needs of your customers, so you can grow your business. Most importantly, we can scale up the level of services we provide to meet your changing needs as your business grows and prospers. Contact us today to learn more about our high risk credit card processing services and the many other services we provide.
Mickael is an entrepreneur and the Co-founder of Bankcard Services. He is a family man and loves technology, innovation, and soccer.