For travel agencies, collecting payments is more than just collecting money. From collecting payments from travelers to paying suppliers, every step involves multi-currency, cross-border transactions, and risk management. This article will analyze why travel agencies are often rejected by payment service providers, the differences between traditional payment systems and travel payment systems, and share methods for screening qualified travel payment service providers.
Why are Travel Agencies often Rejected by Payment Service Providers?
The payment model of travel agencies is much more complex than that of typical e-commerce platforms, involving multiple parties, multiple currencies, and multiple processes. This creates high risks and operational difficulties. Many traditional payment service providers are reluctant to accept these services or only offer high-fee options. The main reasons include:
Complexity of Two-Way Payments
The tourism industry not only needs to collect payments from travelers but also pays them to partners such as airlines, hotels, and local tour operators. This model is more challenging than simply collecting payments, especially with the added complexity of cross-border and multi-currency transactions.
High Costs of Credit and Debit Cards
While Visa, Mastercard, and Amex remain mainstream, high fees, chargeback risks, and the need for high concurrent transaction capacity have deterred some payment providers from attracting travel agencies.
Mobile Payment and Security Needs
Digital wallets like Apple Pay and Google Pay have become standard, but they also require support such as tokenization and secure anti-fraud mechanisms, placing high technical demands on payment systems.
Complex Financial Reconciliation
Travel agencies not only collect payments from travelers but also pay multiple partners and handle commissions, refunds, and other matters. The cumbersome reconciliation process is prone to errors and increases operational complexity for payment providers.
Why do Travel Agencies Need to Upgrade their Payment Systems?
According to Grand View Research’s “Online Travel Agency Market Size, Share, and Trend Analysis Report,” the global market capitalization of online travel agencies (OTAs) reached US$6.1 trillion in 2024 and is expected to continue growing at an average annual rate of 8.6% through 2030. With the rapid development of the tourism market, payments are no longer simply about “collecting money”; they are now a critical component that impacts business efficiency, costs, and competitiveness.
This also means that travel payment systems have become essential infrastructure for both online travel agencies and traditional travel agencies.
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The Difference Between Traditional and Travel Payment Systems
Simply put, travel payment systems help tourism businesses complete the entire process from “collection to payment.” Through travel payment processing, transactions can be divided into two parts:
- Front-end collection: Traveler pays → Data transmitted via payment gateway → Acquiring bank validates → Issuing bank authorizes → Transaction completed.
- Back-end payment: OTAs then distribute a portion of revenue to suppliers (airlines, hotels, etc.), often involving cross-border, multi-currency settlements.
👉 The difference is that traditional payment systems focus solely on “collection,” while travel payment systems must handle both “collection and payment.” This is why peer-to-peer payment systems are so valuable in the tourism industry.
How to Select Qualified Travel Payment Service Providers?
OTAs and travel agencies face the challenges of cross-border, multi-currency, and high-concurrency payments and collections. When selecting a partner, pay particular attention to the following:
- Can the provider handle cross-border, multi-currency transactions, especially in the currencies of major travel destinations?
- Can it handle both collections and payments (i.e., a peer-to-peer payment and collection system)?
- Does it have built-in PCI-DSS certification, tokenization technology, and anti-fraud systems?
- Does it support credit cards, debit cards, and digital wallets (Apple Pay, Google Pay, etc.)?
- Can it detect and prevent high-risk transactions and chargebacks?
- Can it quickly integrate with the OTA platform, CRM system, or financial system?
- Does it provide a single platform for centralized payment and collection processes?
- Is the API developer-friendly?
- Are the fees, application fees, and annual fees reasonable and transparent?
- Can it handle complex scenarios such as refunds, commission sharing, and booking changes?
- Can it automatically generate cross-currency financial reports?
Recommended Travel Payment Service Provider: Travelconnect
In the fiercely competitive travel market, payment efficiency and cost control often determine a company’s ability to grow rapidly. Notably, Travelconnect offers a dedicated end-to-end payment solution specifically designed for growing travel businesses, helping you easily expand internationally.
Highlights:
- Global Presence: Accepts payments in over 180 countries and allows payments in 150 countries.
- Multi-Payment Options: Supports Visa, Mastercard, UnionPay, AlipayHK, WeChat Pay, and more.
- Multi-Currency Settlement: Transparent exchange rates and instant conversion reduce cross-border transaction costs.
- One-Stop Management: Accepts payments, disbursements, and financial reconciliations from a single platform.
- Flexible Integration: APIs seamlessly integrate with OTAs, CRMs, and other existing systems.
- High-Level Security: PCI-DSS compliant, with built-in anti-fraud and risk management features.
Apply now to enjoy 0 application fee, 0 annual fee, and support for multiple fast settlement options!
Fees and Settlement Plans:
| Payment Methods | Handling Fee | Fixed Fee | Settlement Time | |
| Online Payment | Visa / Master | 2% | HKD $1.5 | T+5 / T+10 |
| Overseas | 3.8% | HKD $1.5 | ||
| Alipay | 1.6% | Exempt | ||
| Offline Payment | Visa / Master / UnionPay | 1.5% | Exempt | T+2 |
| Alipay / WeChat Pay | 1.2% | |||
| Octopus | 1.5% | |||
| PayMe | 1.1% |
Travelconnect x eftPay Exclusive Offer
Notably, travel merchants who apply for eftPay through Travelconnect can enjoy a series of exclusive benefits:
- ✅ Zero application fee, zero annual fee, and waived POS terminal rental
- ✅ Handling fee as low as 1%
- ✅ Funds received in as fast as 1 day (varies depending on payment method)
Driven by globalization and digitalization, travel businesses need more than just a payment processing tool; they need a payment processing platform that can handle both payment collection and payment processing. A complete solution featuring payment, multi-currency settlement, and risk management. Choosing a professional travel payment provider and implementing a peer-to-peer payment system not only reduces costs but also improves operational efficiency, allowing your business to stand out in a competitive market. Applications are currently limited, so please contact us as soon as possible if you are interested!
