Embedded Payments for Travel Agencies: Key Advantages

When you’re shopping for a product, it’s annoying when an entirely new tab pops open each time you click on an item. By the time you finish shopping, you can easily have a dozen tabs running.

Worse still, many companies deliberately have their systems set up so that a new tab appears when it is time to pay. Each time a client is sent to an additional tab, it creates another opportunity for the customer to lose interest. Plus, any delay increases the chances that they get bored and disappear. 

As a travel agency, you need to speed up your transaction processing as much as possible. Through an embedded payment, a travel agency can keep customers on its website, avoid abandoned carts, and speed up the transaction process.

TL;DR

• Embedded payments keep customers on your website, reducing your bounce rate and increasing the rate of sales that go through.
• With this payment type, you can give customers a seamless, branded experience instead of sending them away through a third-party link.
• Travel agencies can take advantage of the faster supplier payouts and easy integration with their booking system.
• For the best results, you should find a payment processor that has experience working with the travel industry. Prioritize providers that have transparent fees, fast settlements, top security measures, and global support.

Embedded payments are a faster, easier way for your company to receive payments from customers.

What Are Embedded Payments?

An embedded payment is essentially when the checkout process is embedded into your website. They are an effective way to enhance your revenue strategy because customers are more likely to make a purchase when they can stay on your company’s page. Instead of sending a customer to a payment link on a different site, you can get them to immediately make a purchase from your company.

Plus, you can enhance the payment process by customizing your checkout experience. You can match the design and layout so that it is consistent with the rest of your branding.

How Embedded Payments Work

The embedded payment process unfolds through a few key steps.

1. You integrate the embedded payment system with your existing app or website.
2. The user enters their information into the system.
3. Sensitive data is encrypted, tokenized, and relayed to the payment processor.
4. Next, the payment processor verifies payment details and fund availability.
5. The payment processor sends the approval back to the platform. The customer’s funds are debited and then sent to the merchant account.
6. Finally, the merchant fulfills the order. The client receives a receipt and their completed order.

What Are the Benefits of Embedded Payments for Travel Agencies? 

Considering the bounce rate is normally around 50% in the travel industry, it’s important to do everything possible to keep clients on your site. By adopting embedded payments, a travel agency can decrease abandoned carts, increase conversion rates, simplify reconciliation, and ensure timely supplier payouts.

How to Select the Right Embedded Payment Provider

As a travel agency, there are a few things you should look for in an embedded payment provider.

• Cross-Border Support: If you receive payments from customers abroad or in different currencies, you’ll need to find a payment processor that can accommodate these needs.
• Experience With the Travel Industry: A good payment processor should have specific experience with travel agencies. Because travel is considered a high-risk industry, many mainstream merchants do not work with this industry, or they have added restrictions. You need a payment processor that understands no-shows, disputes, chargeback prevention, and other travel-specific issues.
• Easy Integration: Before you sign up with a payment processor, you need to make sure that you can integrate their systems with your current tech stack. In particular, make sure they offer embedded payments.
• Fast Settlement Times: To ensure your money is ready when you need it, you should find a provider that offers fast settlement times. 
• Excellent Data Security: Data security, fraud prevention tools, and high-level encryption can shield you and your client from potential risks.
• Transparent Fees: Hidden fees can quickly add up, so you need to look for a payment processor that is upfront about the fees they charge.

Top Tips for Implementing Embedded Payments at Your Travel Agency

If you’re thinking about getting embedded payments at your travel agency, reach out to PayCompass. We can walk you through what it’s like to set up embedded payments. As you make the switch, keep the following tips in mind.

Pick Someone Who Knows Your Industry

Each industry has unique needs. In the travel industry, you deal with many customers who are no-shows or who dispute travel charges. Even though people reserve vacations and flights in advance, there is a high rate of chargebacks for this industry. Because of this, you need a provider who understands exactly what you’re going through.

Integrate Payments Into Your Booking Process

When a customer is signing up for a vacation with your agency, you don’t want them to exit out of the website page without paying. The sooner you can show them the payment screen, the better. For the best results, you need to integrate the embedded payment into your booking process.

Decide on the Payment Types You Need 

While 71% of spending in the United States is through cards, this isn’t the only payment option out there. For example, 15% of Americans used buy-now-pay-later (BNPL) methods during the preceding year.

As a travel agency, you will likely want a provider that can handle many different payment types. Additionally, you may want to incorporate installment payments and deposits. Because of the high rate of chargebacks, you should also adopt a straightforward refund policy or offer travel vouchers for cancellations.

Opt for Smarter Analytics

Whenever possible, incorporate tools that allow you to track your sales. Pay attention to chargeback trends, the payment card type, and other details. Over time, you can use payment analytics to optimize your company’s processes.

What Are the Alternatives to Embedded Payments? 

The type of alternatives you can use depends on where you are charging your customer and the payment processing method you prefer. For example, in-person agencies may use a simple point-of-sale (POS) system. Traditionally, old-school agencies would take payments through checks, ACH transfers, wire deposits, and phone calls. 

For digital payments, modern travel agencies typically use an embedded payment or a link. If you use a link, it will take the client to a different tab where the payment is processed. While this is still a viable way to accept payments, there are some drawbacks as well. Customers are more likely to abandon links, so there is a risk that you will lose these sales.

Final Thoughts

With embedded payments, a travel agency can easily process payments from customers. This style of payment is faster, easier, and less likely to cause cart abandonment. Additionally, it speeds up reconciliation so that you can receive funds sooner. 

In order to enjoy the many benefits of embedded payments, it’s essential to find the right payment processor to work with. For this payment style to be effective, it must be effectively integrated into your system. You need a provider that has transparent fees, excellent data security, and multiple payment options. 
For more information on how we can help your travel agency’s long-term growth, reach out to our payment processing experts today.