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Travel Related Businesses
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The banking and credit card rules state that if you are a travel related business providing accommodation and / or flights as part of the product or service that you offer then you must either be ABTA or ATOL bonded (unless you own the hotel or airline). The main reason for the rule is that you may only take a payment for something for which the fulfillment is under your control... more >>>

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High-Risk Account + Gateway

However...

With our Merchant Account + Gateway we may possibly be able to set-up travel companies who have indemnity insurance (also known as bonding insurance) instead.

* Only offer accommodation and don't want to get indemnity insurance?

We may still be able to offer you a merchant account. However there are certain points that need to be met - Please click here

* What is indemnity?

An indemnity is a sum paid by A to B by way of compensation for a particular loss suffered by B. The indemnitor (A) may or may not be responsible for the loss suffered by the indemnitee (B). Forms of indemnity include cash payments, repairs, replacement, and reinstatement.

* I now have the insurance, I can apply right?

Yes, but please be aware that to enable us to provide a merchant account, even though the transaction rates and costs will remain the same, certain terms may need to change such as the settlement period i.e. paid weekly 14 days in arrears (or even after the holiday has taken place) instead of 7 days in arrears. Unfortunately we are unable to say what exactly the new terms would be (if any) until you apply.

There is also the risk that you may get the insurance but may still get turned down.

* Possible catch 22 situation

We are aware that certain indemnity insurance companies will only insure you if you have ABTA and / or ATOL bonding. However ABTA may stipulate (depending on your application) that you must have insurance already and also have been trading for at least two years.

* Learn about ATOL and apply

ATOL is a financial protection scheme for holidaymakers. If an ATOL tour operator fails, the ATOL scheme ensures customers contracted with the ATOL holder for an air package or a flight, do not lose the money paid over or are not stranded abroad - www.atol.org.uk

* Learn about ABTA and apply

ABTA - The Travel Association - now represents over 5,000 travel agencies and more than 900 tour operations, throughout the British Isles. ABTA’s main aims are to maintain high standards of trading practice for the benefit of its Members, the travel industry at large, and the consumers that they serve - www.abta.com


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