What a Travel Merchant Account Is
Visa has rules that touch travel merchants. Here is what Visa's own rules say about travel merchants and how to get ready to apply.
A travel merchant account is a card processing account. It is for a business that sells trips, bookings, or travel services. Airlines, travel agents, timeshare sellers, and train lines all fit.
Travel under Visa's rules
Visa's rules set extra steps for some travel merchants. For how banks oversee processors, read why banks watch payment processors.
How Visa classifies travel merchants
A Visa manual lists codes for travel businesses, called MCCs. Airlines and air carriers have their own codes. Passenger railway merchants have their own code too. Visa's manual says this may or may not include a place to sleep on long train trips.
Timeshares get a specific code. Visa's manual says merchants classified with MCC 7012 sell, lease, and rent timeshares and arrange timeshare condominium exchanges.
Location matters as well. Visa's manual says when a travel agent conducts the transaction, the travel agent's location determines the merchant outlet country. So where your agency sits sets the country of your sales.
Visa's marketplace guide also names travel agents. Visa has a risk guide for marketplaces. It says they include all high-brand risk merchant types, franchises, and travel agents.
What Visa requires when signing an airline
Visa's rules set extra steps for airlines. An acquirer that signs an airline must meet Visa's capital and reserve rules. It must also send Visa a business plan to approve.
Travel rewards programs
Visa also has rules on travel rewards tied to a card. Visa's rules say any travel rewards program offered to the Cardholder must be sponsored by Visa, the Issuer, or an Airline Affinity/Co-Brand program. Visa's rules also say the Issuer must not charge the Cardholder extra to join it.
What to prepare before you apply
If you run an airline, your acquirer must send Visa a business plan. Know your MCC and how your location affects your transactions. Be ready to explain your bookings, refunds, and complaints. Do you sell by phone? Get billing authorization first.
Related reading
Read why banks watch payment processors next.