Introduction

Online travel agencies need real-time payment solutions to pay their hotel, airline, and car rental partners without tying up their operating capital. This highly competitive industry demands the lowest prices and error-free payments. Modern virtual cards and fintech solutions can make funds available for payments in real time as transactions are approved. This eliminates the need for prefunding cards and reduces the risk of error and fraud. Visibility into transaction data provides a better understanding of customer behavior for more effective actions.

What is travel payment processing

Travel payment processing is completed through payment gateways, interfaces that collect consumer payment information. Merchants use this technology to accept travel purchases from customers using a debit or credit card. The term payment gateway not only relates to the physical card-reading devices one sees in stores, but also the travel payment processing portals found in online stores. Travel payment processing can also involve the outbound payouts made by travel companies to their vendors and suppliers, such as tour providers, airlines and hotels. 

How does travel payment processing work?

Travel payment processing involves facilitating financial transactions between OTAs (Online travel agencies) and the travellers making bookings with them, as well as making payments to the OTA’s suppliers and vendors across the globe. 

Whether it’s a hotel, flight, rental car, tour or other travel-related booking, the traveller’s payment information is transmitted through a payment gateway to the OTA’s bank. The OTA’s acquiring bank will then forward the payment to the traveller’s issuing bank for authorisation. Once the funds have been verified and approved, the payment is processed and the OTA’s systems will usually issue a confirmation to the traveller that their booking is now complete. 

Travel payment processing is more complex than payments from other types of vendors. OTAs often deal with cross-border transactions, so currency conversion and fraud protection are especially important.

Although the travel industry’s growth is a win for OTAs, increases in cross-border transactions can complicate the payment lifecycle. For example, collecting payments from customers and paying suppliers globally can complicate financial reconciliation, leading to significant operating costs in extra fees and staff time. 

The challenges that come with growing OTAs and cross border transactions can be all combatted using Transfi’s product, Bizpay, which makes these transactions as easy as an on the go task for Travel agencies, their customers as well as their suppliers and vendors.

Multi-currency travel payments

Although OTAs will have slightly different needs for their travel payment processing solutions, there are a few core features that can transform the way businesses process their travel payments for the better. To deploy multi currency travel payments OTAs use fintech solutions (like Transfi) which provide multiple currency access to ease out operations. The benefits of multi currency solutions are as follows;

1. Provides direct connections to local banks in one platform

Multi Currency payment platforms bring together various local banks and banks of traveller’s preference in one place making the transactions non hectic for all parties involved.

2. Allows payment collection from international customers in their preferred currencies and methods

Different places in the world have a variety of preferred currencies and payment methods that work out the best for them. On a look out for a solution which would provide such a flexibility of currencies and methods, the traveller would opt for a solution that provides it all at one place.

3. Enables fast international transfers to suppliers and vendors that leverage local payment rails

The travel payment processing solutions provide transactions in minimal clicks making it instant hence providing quick services and no compromise with supply and operations.

4. Comes with built-in fraud detection and robust compliance frameworks

These solutions are verified and secured, safeguarding both users’ and business’s data leveraging the information cautiously for required purposes.

Travel payment processing with TransFi

Travel payment processing is made easier by Transfi’s Bizpay as it provides;

1. Multi Currency payment solutions

Transfi provides solutions where users have the flexibility of currency to make payments.

2. 24/7 technical support

Transfi comes with comprehensible documentation as well as all time customer support to combat any issues or fraudulent behaviors.

3. Multiple payment methods

Customers can pay in whichever method is comfortable for them, Transfi provides a bundle of payment methods and integrations for ease and flexibility for customers coming from various backgrounds of payment methods.

The challenges that come with growing OTAs and cross border transactions can be all combatted using Transfi’s product, Bizpay, which makes these transactions as easy as an on the go task for Travel agencies, their customers as well as their suppliers and vendors.

Conclusion

Transfi lets you manage all of your payments and payouts in a single platform, where you can manage your multi-currency balances and expenses. Our platform also offers competitive FX rates that also allows you to earn valuable interchange rebates.

This is something that would revolutionise the way your OTA manages travel payment processing, absolutely. With more than 100,000 companies around the world trusting Transfi’s software and APIs to simplify their financial operations, we want to help your travel business unlock new opportunities and grow in the entirety of the world.

Frequently asked questions (FAQs)

1. What is Travel payment processing?

Travel Payment processing is the sequence of steps that ensure the safe money transfer from a customer to a merchant during a purchase. For travel businesses, having a seamless payment process is crucial because it allows you to accept payments from customers worldwide for services like flights, hotel bookings, rental cars, tour packages, and more.

2. How does Transfi help OTAs manage travel payment processing?

• Multi Currency payment solutions
• API integrations
• 24/7 technical support
• Multiple payment methods
• Quick setup and no hidden costs

3. How are multi currency travel payments helpful for OTAs?

• Provides direct connections to local banks in one platform
• Allows payment collection from international customers in their preferred currencies and methods
• Enables fast international transfers to suppliers and vendors that leverage local payment rails
• Comes with built-in fraud detection and robust compliance frameworks

4. How does travel payment processing work?

Travel payment processing involves facilitating financial transactions between OTAs (Online travel agencies) and the travellers making bookings with them, as well as making payments to the OTA’s suppliers and vendors across the globe. While making bookings, reservations etc, the traveller’s payment information is transmitted through a payment gateway to the OTA’s bank. The OTA’s acquiring bank will then forward the payment to the traveller’s issuing bank for authorisation. Once the funds have been verified and approved, the payment is processed and the OTA’s systems will usually issue a confirmation to the traveller that their booking is now complete. 

5. How does Transfi provide simple integration and automation for travel payment processing?

• Customise the checkout and payout experience through flexible and simple integration options 
• Integrate with popular accounting systems for seamless data syncing, so you’ll be up and running faster
• Automate key processes for more accurate reconciliation, reporting, and compliance.