Credit card processing for timeshares, time share merchant accounts. The Transaction Group offers high risk credit card processing solutions for the time share industry. These include merchant accounts both for businesses that make time share reservations, as well as for those that advertise or sell time share opportunities.
If your business needs to accept credit cards, or you want to reduce your current credit card processing fees, you can get started quickly:
Your Business Model:
One of the many factors that determine the risk involved in processing credit cards for your business is your ‘business model’. What makes up your business model?
• the service you provide or products you sell
• how you advertise & market your business
• your product or service delivery method
• the customer support offered
• the price of your product or services
If your business model falls into one of the categories that credit card processors determine as high risk, you’ll have to set up a merchant account with a processing company that accepts merchants with high risk business types.
Other Risk Factors for Timeshare Businesses:
The potential of charge backs a business may create is arguably the most critical factor when it comes to determining the risk of a business. This is because if a credit card processor lets a merchant continue to process cards with a higher chargeback ratio than is approved by the card associations, it can incur heavy fines. Also, if a business generates a lot of charge backs and is unable to cover the debt, the processing bank is required to do so.
Other factors that may influence the determination of whether a timeshare business will be labeled as high risk are the business owner’s personal credit rating, sales methods, high average tickets, and whether the business is membership based or uses recurring billing methods. Businesses that make custom products or ship for future delivery can also be labeled as high risk.
Your businesses history can help you or hurt you:
Obviously if you have a good processing history, you’re going to have a lot more leverage when it comes to negotiating processing rates and fees with your merchant account provider. Even if your business type is determined to be high risk, you can get competitive rates, if your business has a good track record. Most processors are going to require, at a minimum, 3 months of previous credit card processing statements before they’ll negotiate a rate with you. The reason for this requirement is that they want to see if you’ve had a problem with chargebacks or other issues like higher than normal refunds.
If your time share business has a poor processing history, all is not lost, but it will be more of a challenge to get approved. And if you’re fortunate enough to get approved, you will likely pay for that opportunity with a higher processing rate.
Consequences if your business is high risk:
Because of the higher chance of fraudulent activity, many high risk merchant accounts come with extra stipulations such as increased funding delays, reserves, limits on volume and ticket size, and of course higher rates and fees.
Many high risk credit card processors provide tools to help a merchant cut down on potential fraud or charge backs. Take advantage of these services if available. Most reputable high risk processors can be very helpful when it comes to reducing losses associated with processing credit card payments.
Also, if the processor analyzes your risk factors and determines that they are just too significant, it can decline your application for a merchant account. This can be due to any of the issues discussed above. Also, external factors such as changes in the law can cause a business to get declined for processing services.
The Transaction Group understands the challenges that business owners face when it comes to finding reliable credit card processing for timeshares. One size doesn’t fit all in the high risk industry, so we have multiple relationships with processing companies to ensure we can find the right solution for your business.
To start accepting credit cards today, or for more information about getting a time share merchant account, please click on one of the links below.