Global Credit Cards

For businesses selling online the acceptance of global scheme cards is central to the payments strategy. Linked to this are several key considerations:

• The processing of credit card transactions for bookings and ancillary products attracts a percentage charge from the financial institution that will settle these transactions. In negotiating this fee it's crucial to understanding the make up and some financial institutions may quote on an 'interchange plus' basis - this may suit an airline's needs.
• If an airline is selling into different regions - i.e. there are inter and intra region sales then the fee may vary depending on the source (origin) of the card. A blended rate may be on offer from the financial institution.
• The region in which the airline is based will also impact the fee - for example a US airline is likely to have higher interchange and hence fee rates than a European carrier.
• To manage the 'risk' associated with acquiring credit card transactions, financial institutions are commonly seeking deposits (equivalent to the revenue for the numbers of days bookings not flown) or alternatively seeking to release funds as the 'passenger flies'. Either way these approaches tie up valuable cash reserves.

Consider using more than one financial institution and spread your own costs and risks. By using a payment exchange (such as Realex Payments) you can gain easy access to multiple financial institutions and often create a more competitive situation