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As companies in all sectors focus on preserving capital and de-risking their business, travel operators, in particular, must assess the impact of various payment methods. Payment options can impact both your bottom line and your customer experience, both positively and negatively.
When a customer requests a refund from their card issuer rather than directly from the merchant, the credit card company will reverse the initial payment in what is called a chargeback. Needless to say, chargebacks create a headache for travel operators and are a significant barrier to the ultimate goal of rebooked reservations.
According to Colin Smyth, Head of Travel at Flywire, chargebacks have become a significant issue during the COVID-19 pandemic. “Our travel operator clients have seen a notable increase in chargeback activity since travel bans and stay at home orders went into effect globally,” says Smyth. “Minimizing chargebacks is critical to financially weathering this storm.”
One of the best ways to protect your business financially, and still offer guests a simple and safe experience, is to temporarily encourage bank transfers as the preferred payment method. Bank transfers significantly decrease refund and chargeback risk. Bank transfers allow the merchant to get paid quickly and securely while not having to worry about a chargeback in the coming weeks or months.
Now is also a critical time to reevaluate payment solutions to ensure your business is retaining as much of every payment as possible. Flywire can help ATTA members lower merchant and wire fees, all while reducing back-office work. And the less time you’re spending on back-office work, the more time you can spend improving customer experience and doing the things you love.
To help navigate the intricacies of payments and the unique challenges posed by the COVID-19 pandemic, Flywire is offering ATTA members a free travel payments assessment. To minimize payment fees and reduce risks, request an assessment today.