Updated September 19, 2024

A timeshare merchant account gives travel companies the ability to accept payments online. From a banking standpoint, companies that offer timeshare services are considered high-risk and require custom merchant accounts. Find out how you can apply and quickly get credit card processing for your timeshare business.

Timeshare Credit Card Processing

Many timeshare companies accept credit cards as their main way of receiving payments. As an online company, this is also the preferred payment method for customers. Having the ability to accept multiple forms of payment is key for online businesses. Within the travel sector, there are a number of types of payments buyers have used.

Historically, check and MOTO payments were mainstream for travel agencies. For example, many companies were set up to receive payments over the phone after multiple calls and shared information. As technology changed the payments world, check payments became e-checks which serve a similar purpose but are done through online channels much like a wire transfer.

Why is the Timeshare Industry Considered High-Risk?

If you run timeshare-related businesses, you may have experienced the frustration of a frozen merchant account or even an account shut-down. That's because most payment processing companies consider a timeshare merchant account high-risk. Many traditional financial institutions refuse to work with high-risk timeshare companies.

The following factors are the reasons the timeshare industry is labeled high-risk.

Recurring Billing

Timeshares are typically set up as a subscription model. The customers participating in the timeshare are charged for their share regularly. This means most transactions are on a card-not-present basis, increasing the risk of chargeback ratios. High chargeback ratios make timeshare merchant accounts high-risk.

High-Ticket Transactions

Timeshares are typically expensive purchases as places like beachfront resorts and condos in tourist destinations are not cheap. Most transactions made by timeshare companies are therefore large transactions. This means that if they are canceled, the merchant and merchant account provider lose a large amount of revenue. That's another reason why traditional banks hesitate to work with travel and timeshare businesses.

Multiple Owners/Customers

Each property in a timeshare is paid for by multiple people, rather than having a single timeshare owner. When merchant account providers process credit cards for timeshare monthly payments, they are reliant on multiple cards being approved. Timeshare merchants need all of these transactions to go through to be paid every month.

All of these issues are why merchant services and payment processing companies often choose not to work with the timeshare industry. However, the biggest issue may be chargeback ratios, something merchant accounts worry about with the entire travel industry.

Credit Card Payment Issues In Travel

One obstacle timeshare companies face with credit cards is a chargeback. Customers who aren't happy with their services have the ability to dispute a transaction directly with the bank. If they win, they can get their payment back entirely which causes reputational issues for businesses with merchant accounts.

Chargebacks for Timeshares

Timeshares have an interesting reputation when it comes to financial transactions. Some companies use unique sales tactics to bolster revenue and get more customers through the buying cycle. As a result, some people may decide they didn't want the service in the first place and if a refund isn't issued, they'll go directly through your banking channel with a dispute.

On the other hand, timeshares can offer a great way for people to explore vacation locations at a convenient time. Moreover, travel itself is based on long-term planning and elastic economic decisions. The unfortunate side is that some people cancel trips or flights are delayed. As a result, customers often want their money back for something they couldn't attend.

On the other hand, timeshares can offer a great way for people to explore vacation locations at a convenient time. Moreover, travel itself is based on long term planning and elastic economic decisions. The unfortunate side is that some people cancel trips or flights are delayed. As a result, customers often want their money back for something they couldn’t attend.

High-Risk Merchant Account for Timeshares

With high levels of chargebacks being an underlying characteristic in the industry, many standard banks refuse to take on travel merchant accounts. Not to worry, there are custom processors like Zen Payments that provide the resources you need to accept payments. Their team of experts and underwriters knows exactly what it takes to approve your account.

Low Rates for Travel Merchants

Getting low rates depends on a few key factors, but is achievable for larger long-term businesses. Follow these steps to get a reduction in your payment processing fees:

1. Generate History – The longer you are in business the lower risk you become and the more leverage you have to negotiate rates. Every six months, speak with your payment processor and ask them for a new rate quote while comparing quotes from other companies.
2. Grow Your Business – The more transactions you have and the more money you make, the lower your fees will be. Success begets success in the payment processing world so successful, high-volume businesses are rewarded with competitive rate decreases.

Reduce Chargebacks – Setting up the right chargeback reduction program can help you stop fraud in its tracks. Moreover, certain providers have predictive AI so you can see which customers have a higher likelihood of chargebacks.

Why Choose Zen Payments for Your Timeshare Merchant Account?

Zen Payments has over 15 years of experience setting up high-risk merchant accounts, including timeshare merchant accounts. We will work with you to create a customized payment processing solution for your timeshare business. Take advantage of our 98% approval rate to get set up with travel merchant accounts, credit card processing, a payment gateway, and other merchant services in one to two weeks.

If you run any sort of travel and timeshare businesses, Zen Payments is the best payment processing partner. Your timeshare business needs a credit card processor who understands the timeshare industry and can provide payment solutions that reduce chargeback ratio, protect customer information, and allow you to save money on fees. We offer amazing customer service; reach out anytime with questions about your travel or timeshare business, your retail merchant account, or payment gateways.

Talk to our merchant services specialists today to get started with a high-risk merchant account!