In the travel industry, payments are more than just transactions—they are a crucial touchpoint in the customer journey. Travellers expect speed, security, and convenience when booking flights, hotels, or experiences. At the same time, businesses must consider operational efficiency, cost control, and fraud prevention. To remain competitive, companies should adopt modern, cost-effective payment solutions that not only enhance the customer experience but also drive business performance.
Here’s a closer look at some of the biggest payment challenges in the travel industry and how businesses can overcome them.
Reducing failed transactions and payment friction
Few things frustrate customers more than a failed payment, especially when booking a trip. Payment failures can occur due to outdated infrastructure, authentication issues, or overly aggressive fraud prevention measures blocking legitimate purchases. Implementing more reliable payment methods—such as real-time bank transfers through Open Banking—helps reduce these failures, ensuring a smoother and more efficient checkout process. Atoa’s direct bank payment system minimises reliance on card networks, improving transaction success rates and boosting customer trust.
Handling refunds quickly and efficiently
Travel is unpredictable, and cancellations or changes are common. When customers request a refund, they expect it to be processed quickly. Traditional refund processes can be slow, taking days—or even weeks—to return money to a customer’s account. This delay can lead to frustration and negative reviews. By leveraging Open Banking technology, businesses can process refunds instantly, giving customers peace of mind and enhancing brand loyalty.
Combating chargeback fraud
Chargeback fraud, where customers dispute a legitimate transaction to reclaim funds, is a costly issue in the travel industry. Since travel bookings often involve high-value transactions, fraudulent disputes can significantly impact revenue. Unlike card payments, Open Banking transactions do not have a chargeback mechanism, significantly lowering the risk of fraudulent claims. Additionally, enhancing fraud detection with advanced analytics can help identify suspicious activity before it escalates, protecting the business in the long run.
Managing high transaction fees on expensive bookings
Travel purchases often involve large sums, making transaction fees a significant cost for businesses. Traditional payment processing methods, especially card payments, come with high fees that eat into profit margins. Open Banking payments, such as those enabled by Atoa, offer a more cost-effective alternative—helping travel companies save up to 60% on transaction fees. By adopting these solutions, businesses can reduce costs while providing a smoother and more secure payment experience.
Embracing innovation for a better payment experience
As the travel industry continues to evolve, so must its approach to payments. Businesses that adopt innovative solutions like Open Banking can provide a frictionless experience for customers while reducing costs and fraud risks. Atoa empowers travel companies with seamless, cost-effective payment solutions that streamline transactions, minimize fees, and enhance overall customer satisfaction.
Find out how your business can reduce costs and improve payment efficiency—Contact us today.
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