The Timeshare industry gets a pretty bad rap doesn’t it? I mean first of all, even though it’s a perfectly legal business it is often viewed by many as some sort of scam. Then doing business is made immensely more difficult due to being shunned by domestic banks who view Timeshare companies as high risk and refuse to give them a merchant account forcing them to go to high risk offshore banks just so they can accept payments.
The travel sector in general has a high risk reputation but timeshare sales take it to the next level. Why? Because unfortunately, it is seen as an industry where people make impulse purchases and end up feeling buyers remorse. Timeshares are also difficult to sell when the owner no longer wants the product. Domestic banks tend to shy away leaving offshore high risk bansk the only options.
Going with offshore payment processing brings with it it’s own whole set of challenges that make doing business more difficult. Cash flow being one of the worst. High risk merchant accounts are costly and usually only fund about once a week. Dependability is another challenge, there’s a risk that the bank shuts down your account leaving you with a huge interruption to business while you try to get approved for a new merchant account and sometimes the bank itself goes out of business leaving you high and dry while you look for a new one. And then there’s customer service, offshore accounts often just don’t have the reliable customer service that we have come to expect.
The reality is that Timeshare is a pretty brilliant real estate ownership opportunity that allows people the types of vacations they may not have thought they could afford. But there are a ton of happy owners who are benefitting wonderfully from this type of shared ownership. People who, once they have decided this is how they would like to spend their hard earned money, need to find a way to pay for this ownership. Timeshare companies must be able to accept credit cards and other forms of payments to be able to complete these sales with their customers. While that does mean going to a high risk merchant account offshore, it doesn’t have to be the way we talked about above. Bankcard Brokers specializes in high risk processing and we have worked very hard to partner with reputable and reliable acquiring banks. Banks that offer the most fair prices in the industry, reliability and attentive customer service to go with it. But it is also important to have multiple payment options both for customer satisfaction and for business security. Having an ACH merchant account fulfills both requirements.
ACH payments is a reliable merchant account option for Timeshare companies.
So we’ve covered that in order to process credit cards in the Timeshare industry you must go to a “high risk” processorwhose offshore acquiring bank is friendly to the travel industry. Which is fine, except they generally do not allow you to process ACH transactions. That leaves a huge hole in your payment options for both the business and the client.
An ACH merchant account is a perfect companion to your merchant account for accepting credit cards.
First of all the fees for processing ACH transactions is generally quite a bit more affordable when compared to credit card transactions. Lower costs means less overhead for the business. Your ACH merchant account will also provide you with quick dependable funding, no more waiting a whole week for access to your funds! This type of transfer is also more convenient than writing checks for both the business and the client. No waiting for the check to clear and access to the funds to be granted. ACH transfers also come with low or no chargebacks meaning less profits out of pocket and less chance that your merchant account will be flagged and shut down. ACH is the perfect option for recurring payments such as quarterly dues and other ownership fees. When you can accept ACH payments for these types of fees it allows the owner to pay online or over the phone using just their routing number and bank account information. It also allows the owner to set up their dues payment one time and pay their quarterlies on time every time. Another bonus for your business cash flow.
One of the biggest arguments for having an ACH merchant account to accompany your credit card account is reliability.
Even more than offering more payment options for your customers, lower costs and quicker funding, and caring customer service is the peace of mind you get knowing you have a reliable way to keep getting paid. If, in the unfortunate event that your credit card merchant account gets shut down you still have a way to sell your product and take payments from your customers. It can be absolutely crippling to a business to not be able to take payments and have to halt business until they qualify for a new merchant account. In the timeshare industry cash is just not an option. Sending your customers down the street to take out thousands of dollars in cash or buy a cashier’s check usually means lost sales. Having a way to set up an ACH transfer means sales can go on uninterrupted and business can go on as usual. It is the perfect complement to your credit card merchant account and the perfect back up plan.
Bankcard Brokers has years of experience in the high risk industry and with it the experience and connections needed to navigate the unique needs and challenges of the timeshare industry. Bankcard Brokers is proud to offer you a quick application process and fast approvals to go along with our competitive rates and world class service. Bankcard Brokers is here to earn your business for life!
Give us a call today to learn more about how setting up your own ACH merchant account can boost your profits and help protect your business.