Payment Processing for the Travel Industry

Travel is a multi-billion-dollar, global enterprise comprised of multiple industries, including transportation, hospitality and tourism services. Increasing affordability of mass transportation, lodging and logistics has opened remote destinations to millions of people worldwide, creating new forms of travel, including participatory, educational and eco-tourism categories.

DigiPay Solutions has created a “Travel Industry Primer” with important information about setting up a merchant account, controlling chargebacks, managing risk and keeping merchant accounts in good standing.

Who is DigiPay Solutions?

DigiPay Solutions is a recognized payment processing brand among travel service providers. The company’s extensive network of partner banks, payment experts and elite portfolio of tailored solutions has helped launch entrepreneurial start-ups and take enterprise organizations to the next level of corporate growth.

Thousands of merchants, from start-ups to enterprise-scale organizations, leverage DigiPay’s curated knowledge of high-risk payments to securely process hundreds of millions across an array of vertical industries. DigiPay works closely with national and regional travel industry vendors and service providers, providing tailored solutions and timely advice, while helping clients maintain the highest standards of banking and payment card industry compliance.

DigiPay’s team of experts, combined with our partners’ proven record of successful travel industry products and services, can facilitate successful new company launches and help existing businesses grow and scale.

A Travel Industry Payment Processing Primer

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A Brief Guide to the Travel Industry

The Travel Industry: An Economic Overview

U.S. and international tourists spent $990.3 billion in the United States in 2016, according to the U.S. Travel Association, a 2.1 percent increase compared to the same period of the previous year. U.S. travel spending produced $248 billion in payroll income and $158 billion in federal, state, and local tax revenues. Domestic travelers spent $837 billion (a 2.9 percent increase over 2015); international travelers spent $153.7 billion (a 2.1 percent decline over 2015).

In the transportation sector, international travelers paid a total of $39.1 billion to U.S. air carriers, a 6.1 percent decline from 2015. Economists say the weak global economy and strong U.S. dollar were contributing factors to the decline in international travelers’ spending, but note that U.S. residents spent $110.5 billion travel abroad in 2016, which contributed to a nearly $43.2 billion surplus in 2016 international spending. The Travel Price Index, which measures the cost of inflation in travel products and services, was stable (0.3%) in 2016.


Travel agents, consultants and service providers are categorized by SIC Code, NAICS Code and Visa Merchant Category Code (MCC) to comply with payment card industry requirements.

Proper classification is vitally important to prevent funds from being held in reserve for misrepresentation. SIC, NAICS and MCC codes can be found under different general industry codes, depending on the nature and focus of services. Following are some examples:

SIC Codes:
472401: Tourist Information
472402: Travel Agencies and Bureaus
472403: Travel Consultants
472404: Trains, Ticket Agencies
472405: Golf Vacation Packages
472406: Cruises
472407: Destination Management
472408: Tours-sound Tape Systems
472410: Wedding Honeymoon Planners

561510: Travel Agencies

MCC Codes
4722: Travel Agencies, Tour Operators

Leaders and Rising Stars

The diversified travel industry provides tourists and travelers of all ages and nationalities with an abundance of destinations, travel packages and modes transportation. Here are some examples of leading companies in the space:

  1. Expedia Inc.:

    Expedia, Inc. (NASDAQ: EXPE), an online travel company with annual revenues of $60.8 billion, has a portfolio of online travel brands, including,, Expedia Affiliate Network, Trivago, HomeAway, Egencia, Orbitz, CheapTickets, Travelocity, Hotwire, Wotif Group,, Classic Vacations, Expedia Local Expert, Expedia CruiseShipCenters and SilverRail Technologies Inc.

  2. The Priceline Group Inc.:

    (NASDAQ: PCLN) with $55.5 billion per year in online and travel-related service revenues, serves customers and partners in over 225 countries through six primary brands –,, KAYAK,,, and OpenTable. The Priceline Group‘s mission is to help people experience the world.

  3. American Express Global Business Travel:

    (GBT), a joint venture that is not wholly-owned by American Express Co. or any of its subsidiaries, provides travel insights, tools, services and expertise to companies to keep traveling employees informed, focused and productive. The company employs approximately 12,000 representatives in nearly 120 countries and generates $30 billion in annual revenue. Additional information can be found at

  4. Carlson Wagonlit Travel:

    This corporate travel service uses innovative technology and experienced specialists to provide premier travel services. The company employs more than 18,000 people in approximately 150 countries, and posted total transaction volume of $23 billion in 2016.

  5. Your Name Here:

    With your great brand story and DigiPay Solutions as your processing partner, there’s no limit to how far you can scale your company. DigiPay’s diverse, extended family of travel professionals process anywhere from $20,000 to millions in monthly revenue.

Interested in learning more about Publicly Traded Travel Company on Major U.S. Exchanges? Use this link to view by Large-Cap Stocks, Mid-Cap Stocks and Small-Cap Stocks.

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Travel Industry Programs and Services

The travel industry encompasses numerous industries and modes of travel, including these examples:

Maritime travel: is a popular method of transportation, both for short-duration trips and commuting via small boats and ferries, and leisure cruises to popular destinations, including the Caribbean, Europe, and North and South America.

Air travel: The speed and efficiency of air travel has made it the most prevalent form of international travel. The world’s busiest airports are the U.S. Los Angeles International Airport, the U.K. Heathrow Airport and Germany’s Frankfurt International Airport.

Terrestrial travel: Domestic rail travel ranges from inter-city trains methods of rapid transit to high-speed long distance trains. International rail travel is popular in some regions of Europe and Asia. Countries with the highest percentages of rail travel are China, India, Russia and Japan. Road travel, the most affordable of all transportation methods, includes personal autos, buses, limousines and taxis. The world’s busiest roadway is Highway 401 in Ontario, Canada.

Travel Industry Segments:

Tourism: This segment has experienced rapid, sustainable growth and accounts for approximately ten percent of the world’s GDP.

Hospitality: Tourism, hotels, entertainment and food sectors are considered part of the hospitality industry, which has been characterized by economic fluctuations. Lodging and food services are the top domestic and international spending categories.

Aviation: Global aviation is a multi-billion-dollar industry serving millions of passengers. In 2016, U.S. airlines carried 823.0 million passengers, 719.0 million domestic and 103.9 million international, surpassing the previous highs reported in 2015, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS).

Shipping and Logistics: The transportation of cargo through designated sea routes is regulated by the International Maritime Organization (IMO) and accounts for 90 percent of world trade. Logistics, involving freight delivery, uses advanced technologies and reporting and is subject global regulatory authorities and oversight.

Shipbuilding: Shipyards where seaworthy vessels are constructed and maintained support international trade, employment and a range of ancillary services.

Opportunities and Challenges

The U.S. Travel Association reported that U.S. residents took 1.7 billion leisure trips in 2016, which included visiting relatives, shopping, visiting friends, fine dining and rural sightseeing.
Business travel in 2016 was equally robust, including expenditures on meetings, events and incentive programs totaling $307.2 billion. The association noted that every dollar invested in business travel benefited firms increased revenues an average of $9.50 and profits by $2.90.

Due to the highly competitive nature of the travel industry, companies that specialize in a vertical industry or niche have been shown to outperform generalist travel product and service providers. Among the challenges facing the industry are global economic conditions, labor strikes, volatile pricing models and the long wait periods between time of booking and actual travel packages. Consumers who book cruises ahead are at risk of defaulting or cancelling their plans, even when the contracts clearly stipulate cancellation terms.

Enabling Travel Commerce

How do I create an eCommerce merchant account?

Establishing a merchant account to process payments is the first step in enabling commerce. The travel industry is classified as a high-risk business, which means industry service providers are ineligible to apply for merchant accounts at numerous sponsoring banks. DigiPay’s expanded network of banking relationships accepts the travel business category and provides competitive rates, terms and conditions.

Travel product and service providers find it advantageous to work with processing partners who are familiar with their industry, jargon and common business practices. Payment processing sales representatives who are not familiar with travel industry customs and terminology may be less effective at managing relationships, due to their learning curves. When travel-related companies work with knowledgeable processing partners, they can save time and money, improve efficiencies and attract and retain more customers and followers.

Why is Travel considered High-Risk?

Many banks will not process for travel merchants due to the industry’s higher-than-average ticket size and potential for chargebacks. Travel companies, especially entrepreneurial start-ups, may be unfamiliar with related risks of working with consumers who pay in advance for future services, increasing the chance that they may later opt out or cancel a planned trip.

Here are some risks commonly associated with travel service customers:

  1. Recurring Payment Default:

    Consumers who pay in installments for future travel may dispute a charge that appears on their credit card statement. Many card issuing banks require consumers to contact the merchant before they process a chargeback request.

  2. Exaggerated Claims:

    Consumers may pay in advance for a trip, then become disappointed when the experience does not meet their expectations. This may result in a chargeback. They do not even have to prove the company made an exaggerated claim. They only need to demonstrate that a travel company misrepresented a trip or service. Travel companies must comply with truth-in-advertising laws.

  3. Lack of Infrastructure:

    Travel start-up companies may not have appropriate levels of customer support to deal with consumer complaints and inquiries. Consumers who are unable to voice concerns to merchants may turn to payment card issuers for refunds and chargebacks.

Can DigiPay Acquire Travel Industry Merchants?

Yes, at DigiPay, travel is in our DNA. As financial services specialists, we are familiar with the travel industry’s unique framework and diversity of categories, business models, SIC and NAIC and VISA MCC codes. We underwrite our merchants before sending their applications to our sponsor bank.

Once new merchants establish credibility and trust with DigiPay banking partners, they receive personalized attention and ongoing risk management from DigiPay’s team of payment specialists. This personalized service, coupled with the sheer volume of transactions we process through multiple banks, ensures our merchants receive the highest level of service and support.

Choosing the right payment processing partner is critical, because without the ability to accept payments, merchants are out of business. DigiPay’s merchant onboarding process combines sophisticated technology with human oversight. Experienced underwriters who understand the travel service industry, and have expertise in payment card brand and banking industry compliance, bring a refreshingly holistic approach to new account set-ups.

Whether travel-related businesses specialize in short excursions or exotic destinations, DigiPay Solutions will give travel merchants the attention and resources they deserve and a one-stop shop for processing solutions. The travel industry is growing and DigiPay can accelerate that growth. The first order of business is eliminating any barriers to progress. Look no further than DigiPay Solutions, where getting a merchant account will open doors to a bright and prosperous future.

Why is so much information required for a travel merchant account?

Due to the higher risk associated with the travel industry, more due diligence is required during the new merchant onboarding process. This means underwriters need to review a range of documents to assure the business is compliant, financially sound, and a good credit risk. DigiPay is unique because we underwrite merchants in-house before we submit their applications to the bank. Because our team of underwriters is experienced in high-risk, your business is presented to the bank with all required documents and full disclosure, to engender trust and stability.

Presenting your business in the best possible light from point of first contact is important because merchant accounts are essentially a line of credit from a processor. Because high-risk merchants have higher chargeback ratios and regulatory exposure, financial institutions are concerned they may violate card brand rules, laws and regulations. Complaints to the FDA and the FTC against a merchant create liability not only for merchants, but can also hold processors accountable under Know Your Customer (KYC) regulations.

DigiPay’s in-house team of underwriters and risk managers have curated knowledge in all areas of high risk. We are best qualified to guide you through the process efficiently and painlessly while helping to present your business to increase approval and gain credibility.

How do I increase my processing limits?

Once a high-risk travel industry merchant account is approved, payment processors set monthly processing limits, typically between $10,000 and $30,000 per month, for the first three-to-six-months. This gives processors time to develop a customer risk profile by evaluating payment flows, average ticket sizes, processing levels and chargeback ratios.

Travel industry companies that maintain a stable, consistent performance throughout initial trial periods can usually increase their processing limits. DigiPay’s risk management team works with merchants and sponsoring banks to shorten trial periods and raise processing limits.

Managing Alerts, Refunds and Chargebacks

Maintaining a low chargeback ratio is key to maintaining a healthy merchant account. When chargebacks exceed card brand maximums, your merchant account is at risk of being shut down. If a merchant category has consistently excessive chargebacks, banks will sometimes shut down an entire vertical industry. For this reason, it is critical for high risk verticals to self-regulate and work collaboratively to establish industry best practices.

How can I track my chargeback and refund ratios?

Keeping track of your Transaction Chargeback Ratio as well as your Volume Chargeback Ratio is critical because this is what Visa, Mastercard and payment processors monitor. Payment processors with high chargeback ratios in their merchant portfolios can trigger unannounced audits by Visa or Mastercard. For this reason, DigiPay, powered by TranZlytics, closely monitors chargeback and refund ratios, reacting quickly to spikes in activity. Excessive refunds, frequently the result of alerts, can be a sign of fraud or poor business practices, information the card brands and banks may consider when assessing risk.

The formulas shown below use simple math to derive Transaction Chargeback, Volume Chargeback and Refund Ratios:

  1. Transaction Chargeback Ratio:

    Add total monthly number of chargebacks and divide by total monthly number of transaction. For example – if during a month you processed 500 sales, and there were 10 chargebacks, your chargeback ratio would equal 10/500, or 2.00%.

  2. Volume Chargeback Ratio:

    Add total monthly dollar amount of all chargebacks and divide by the total monthly sales volume.
    For example – if during a month, you processed 500k in sales, and your chargebacks were 10k, your chargeback ratio would equal 10/500, or 2.00%.

  3. Transaction Refund Ratio:

    Add total monthly number of refunds and divide by total monthly number of transactions.
    For example – if during a month you processed 500 sales, and there were 10 refunds, your refund ratio would equal 10/500, or 2.00%.

  4. Volume Refund Ratio:

    Add total monthly dollar amount of all refunds and divide by the total monthly sales volume.
    For example – if during a month, you processed 500k in sales, and your refunds were 10k, your refund ratio would equal 10/500, or 2.00%.

How do I Maintain Low Chargeback and Refund Ratios?

It is important not to ignore chargebacks, because win/loss ratios matter. Visa and Mastercard can impose penalties and fines in the tens of thousands on payment processors and their sponsoring banks for continuing to process transactions for merchants that exceed the permissible 2 percent chargeback ratio. Non-compliant processors and banks may also be subjected to further scrutiny and potential shut-down by card brands and regulators.

Here are some recommended ways to maintain low chargeback and refund volume ratios:

  • Stop fraud before it happens:

    Proactively identify fraudulent and stolen cards and suspicious behavior when possible. Having items like an SSL certificate, additional billing details, and other fraud detection tools.

  • Be accessible to customers:

    Dissatisfied customers who have access to live support will frequently be satisfied that they had the opportunity to air their grievances. They may be satisfied with a simple return or refund and find it unnecessary or initiate a dispute or chargeback.

  • Maintain a high transaction count:

    Companies with high levels of credit card transactions are in a better position to absorb chargebacks. Low-volume merchants can find themselves in the dubious position of having a high chargeback ratio with just a few chargebacks.

  • Maintain excellent logistics and fulfillment:

    In the always-on, always-connected world, customers expect immediate confirmations and emailed receipts when they place orders online. A good CRM program can automate this process. The DigiPay TranZlytics Gateway is preconfigured to display a merchant’s contact information and customer service number to ensure that travel merchants are locatable, and include tracking information with each shipment notification.

  • Use email marketing:

    Follow product orders and shipments with a simple survey or thank you email. This simple gesture will improve brand recognition when customers receive their credit card statements and make it easy for them to contact your company to complain or request a refund.

  • Initiate pre-chargeback and refund alerts:

    Create instant notifications of incoming requests for refunds, chargebacks and assorted customer inquiries. These services can be implemented in-house or outsourced to third-party providers. Merchants have a small window to react to customer disputes before card brands rule in favor of consumers. Automated chargeback and refund alert systems help merchants mitigate risk.

  • Implement a billing support hotline:

    Providing customers with a dedicated, toll-free number and email address will alleviate their concerns and build good will. Travel businesses that are highly accessible to customers have been shown to increase customer loyalty and decrease chargeback and refund ratios.

  • Create an easy refund process:

    Refunds are a reality of life and a cost of doing business in the travel industry. By accounting and budgeting for refunds, travel merchants can accommodate dissatisfied customers, avoid chargebacks and improve transaction flows.

Chargeback Mitigation Companies for Travel related Businesses

Merchants can handle chargebacks in-house or outsource to a Chargeback Mitigation Specialist. The following companies are experienced in identifying all forms of fraud, including friendly fraud. They will investigate chargeback claims and retrieval requests on behalf of merchants:

Chargeback Mitigation Companies:

  • MIDigator
  • Chargeback Guru
  • Chargebacks 911
  • Chargeback 360


How do I choose an eCommerce gateway?

Travel companies rely on eCommerce and Mail Order/Telephone Order (MOTO) sales to scale their businesses. Credit card payments transacted online or by phone are called Card Not Present (CNP) transactions. Online CNP transactions involve credit card gateways that transmit payments from merchants to their payment processors.

Following is a list of recommended attributes of payment gateways that address the unique requirements of travel companies:

Support multiple merchant account IDs (MIDs):

Many travel companies need multiple merchant accounts to support their diversified array of training programs. Gateways should ideally be able to manage multiple merchant I.D.s organized under one master MID relationship.

Simple integration:

Payment gateways need to seamlessly integrate into CRMs, POS systems, third-party software, and eCommerce shopping carts to facilitate all forms of online, MOTO and in-store commerce.

Enhanced reporting tools:

Travel service providers rely on a variety of real-time reports and transaction data to grow and scale their businesses and manage chargebacks and refunds.

Merchant Dashboard, with permission levels:

In addition to enhanced reporting, travel merchants need to securely access transaction data from anywhere they happen to be working, with built-in permission levels that facilitate all levels of employees and management.

Payment gateways must comply with the Payment Card Industry Data Security Standard (PCI DSS). Ask your gateway provider if they are PCI DSS compliant and verify their certificate annually. Travel merchants also need a gateway with a data vault for tokenization of credit card numbers and encryption of customer personally identifiable information (PII).

Tokenization replaces a Primary Account Number (PAN) with a randomly generated set of numbers and records this in the data vault. This is to prevent hackers from accessing customer data. By storing PII and PAN in a highly secure, offsite location merchants shift their liability to the gateway provider. Encryption and tokenization keep your customer’s information safe while allowing merchants access to the data for future transactions.

TranZlytics Gateway:
Choosing the right gateway provider is critical for high-risk merchants and their processors. DigiPay’s chosen gateway is TranZlytics. TranZlytics offers high risk merchants a Gateway and HUB built from the ground up for high-risk and CNP merchants. The solution includes transaction analytics and fraud prevention and built-in advanced chargeback management.

TranZlytics also offers advanced real-time reporting for faster and better use of CRM data.
Payment descriptors are registered with a Chargeback Alerts program; re-presentments are pre-integrated with the gateway.

With a single HUB for transaction management and an expert risk management team to monitor your data, you can focus on what you do best, growing your business. Think of Tranzlytics as a Travel Industry HUB with the IQ of Einstein and the memory of an elephant.

CRMs for Travel Businesses

Customer Relations Management (CRM) software is a basic requirement, both for large enterprises and small companies that want to scale and grow their businesses. These systems are designed to automate the lifecycle of product offerings and to facilitate payments. As with payment gateways, it is vitally important to validate the CRM is PCI DSS compliant if it is touching customer information. Unlike payment gateways, CRMs are not rigorously monitored for PCI DSS compliance; a security breach can devastate your business and erode customer trust.

Below are examples of CRMs used by professional travel industry entrepreneurs and enterprise-level service providers:

  • Konnetive CRM:

    Konnektive is CRM of choice for a diversified array of travel companies. The CRM’s expanded solution suite shopping cart technology, logistics and fulfillment and call center integration. The platform also provides advanced reporting and analytics and PCI certification. Subscription prices vary.

  • Zoho CRM:

    Zoho, a generic and inexpensive CRM program provides tools for recurring billing, customer tracking, customer satisfaction emails and a customizable database. While the service is not specifically designed for the travel industry, it is affordable and supports multiple MIDs.

  • Limelight CRM:

    Limelight is the go-to CRM created “For Marketers, By Marketers”, for a travel businesses. The reason it’s so popular is its integration with NMI and some robust call center integration. The biggest downside to LimeLight is that they’re expensive. Everything is done via a custom quote, but a travel business can expect to pay at least $500 per month, plus a one-time setup fee. Whether or not that fits within your budget is obviously up to you, but it is probably worth doing an intro call just to see why so many travel businesses end up choosing them

  • Google Sheets:

    Google Sheets is a free service that provides a basic spreadsheet for start-ups. Its biggest asset is that it is free.

Growing and Scaling Your Travel Business

It’s a Great Time to be in Travel

Travel is a highly competitive growth industry, and DigiPay is excited to be part of it. Our extended family of travel service provider merchants, with vastly different models and product sets, are equally committed to optimal results, performance metrics and profitability. While products and services vary, all travel industry clients want affordable and easy high-risk payment card processing, which is our specialty.

Mike Ackerman
Co-Founder, CEO, DigiPay Solutions

Affiliate Marketing

What is affiliate marketing? Affiliate marketing is a partnership between merchants and affiliated individuals and companies that sell for them on the internet. Companies of all sizes, from leading global brands to start-up entrepreneurs, use the affiliate marketing model to great advantage, finding it an effective and lucrative ecommerce strategy. For example, thousands of affiliates promote products on their websites, redirecting buyers to Amazon’s site where they can check out and complete the sale. These sales are tracked by unique URLs that enable affiliates to earn commissions.

Creating an effective affiliate marketing plan begins with identifying trusted and reputable affiliates with extensive networks and followers, retail analysts have noted. These sources can help introduce products and services to markets outside a company’s traditional marketing footprint. Some examples might be a blogger with thousands of followers, or an e-zine with a strong vertical industry focus.

Because affiliate marketers are ideally an extension of a company’s brand and salesforce, it is crucial for organizations to create an affiliate program with clearly articulated terms and conditions, leaving nothing to chance. Some companies may outsource most of their promotional efforts to affiliate marketers. Others may supplement their traditional salesforce with a few affiliate partners.

Companies need to consider their primary objectives and corporate culture when creating an affiliate marketing program. Companies that manage more than one sales force, such as telemarketers and outside sales, have learned to structure sales programs to ensure that different teams are not competing against each other. This principle is equally relevant when working with affiliate marketers, who have proven to be most effective when they are not in direct competition with internal sales teams.

What are Five Essential Components of an Affiliate Marketing Plan?

Payment acceptance: Affiliate marketing takes place on the internet, where payment methods vary. Merchants that only accept traditional credit cards will miss the opportunity to scale their businesses globally, by not accepting the most popular payment methods of other countries. Partnering with a company that specializes in cross-border payments and understands the unique regulatory environments of different countries around the world, will solve this issue.

Establish dedicated URL links: Targeted, accurate URLs are directly tied to affiliate marketers’ commissions and need to directly link to landing pages and product codes. Companies need to work with IT specialists to accurately track and promptly commission affiliate sales.

Create a coupon program: Considering how many consumers search for coupons and offers online, doesn’t it make sense to create coupon programs that help affiliate partners attract prospective buyers? Discount codes are one of the biggest growth hacks on the internet and show no sign of slowing down.

Stay in touch with affiliate partners: Establishing deep ties with affiliate partners means notifying them in real-time of any changes in inventory, pricing models and promotions. No company can afford the embarrassment of having an affiliate learn of a discontinued item or clearance sale through a third party. As sales representatives on the front lines of selling a company’s products, affiliate marketers deserve real-time alerts to keep them agile and motivated.

KPIs, banners: Affiliate marketers, like any sales professionals, need to know their key performance indicators, not only to track their closing rates but to be inspired to reach even greater heights. While there are multiple ways to do this, establishing a secure portal where they can log in and view their activity, commission status and current promotions will help them stay on track and cut down on customer service calls.

How can Merchants Prevent Affiliate Fraud?

  • Know Your Affiliate (KYA):

    Before you approve a new affiliate, your first step in preventing fraud is to fully vet them. Ask them about their current brand relationships and how they promote their products. Their responses will help you evaluate if their values and culture are consistent with your company’s image and brand. Ask how the affiliate will drive traffic & sales to your offer. Check to see if the affiliate has behaved fraudulently in other programs

  • Review the Affiliate Site to See:

    • Is their website(s) compatible with your brand standards?
    • What visual impression are they creating?
    • Is the copy written in a way that will enhance or cheapen your brand?
    • Are the product descriptions accurate?
    • How well are they promoting their site?
    • How well do they integrate with social sharing options?

  • Enforce Affiliate T&C and keep them updated:

    To stay apace with ever-changing rules and regulations, it is necessary to periodically update your affiliate terms and conditions. Let your affiliates know how these updates will be broadcast and request confirmation. Be sure to include a due date for compliance to the new terms as well as an enforcement strategy.

  • What is the best way to enforce Affiliate Terms?

    Monitor for violations using technology and human intelligence. Consider contracting with third-party service providers that use technology to monitor websites, or build those capabilities in-house. Ideally, machine learning coupled with human intelligence is the best way to ensure compliance.

  • Can Enforcement Be Outsourced?

    Yes, DigiPay powered by Tranzlytics provides high-risk merchants with Pro Managed Services to ensure compliance and to detect and prevent fraud. Tranzlytics fraud detection includes daily screen shots that identify changes to a website. In addition to monitoring for key word violations, Tranzlytics can monitor affiliates and sub-affiliates traffic to ensure compliance.

What is the best way to spot affiliate fraud?

The adage, trust but verify, applies when monitoring affiliates. The following guidelines can help identify potential fraud:

  • URLS’s with multiple redirects: It is important to know if the affiliate is using an approved site for your offer or unapproved sites to send fraudulent traffic.
  • Look at referring URL’s for the original source of leads and sales. Check for trends to identify sub-affiliates associated with fraud and high chargeback ratios.
  • Multiple transactions from a single IP address. This could indicate an affiliate or sub-affiliate is running stolen credit cards to place multiple orders.
  • Use transaction history and trends to Investigate spikes in leads or sales.

What are common affiliate marketing words, expressions and phrases?

Affiliate software: Unique applications developed by companies to track and manage their affiliate marketing programs.

Affiliate link: This distinct URL, created for each affiliate marketer, enables companies to recognize, track and pay commissions to affiliates.

Affiliate ID: These unique IDs are sometimes used in addition to unique URLs on websites to identify affiliate marketers and ensure that they are compensated for sales.

Payment Mode: Pertains to the method of payment used by a consumer to complete an affiliate-referred sale. Most affiliate programs offer payment methods beyond traditional credit cards to appeal to global consumers.

Affiliate Manager/OPM: Affiliate managers, who specialize in all aspects of affiliate marketing, provide expert guidance on establishing and maintaining affiliate programs.

Commission percentage/amount: This refers to the percentage of each sale that companies provide in commissions to their affiliate marketers.

2-tier, or multi-tier, affiliate marketing: Like multi-level marketing schemes, this method rewards affiliate partners for referrals and recommendations, creating a second tier of sub-affiliates who can also earn sub-affiliate commissions.

Landing pages: This web page is used to promote a specific product and is frequently used to test a market’s receptivity to a product or service.

Custom affiliate income/account: Some companies reward top-producing affiliates by creating an elite sales program with higher-tiered commissions.

Link clocking: Link clocking shortens affiliate-identifying links, keeping them short and easy on the eyes.

Custom coupons: Custom coupon programs, directly linked to specific affiliates, help companies track and analyze affiliate sales.

A growing number of companies are working with DigiPay and TranZlytics to optimize and grow their affiliate programs. Contact us today for a no-obligation review.

Industry Associations

The following membership organizations and trade associations represent the interests of the travel industry:

U.S. Travel Association: The U.S. Travel Association is a national, non-profit organization representing travel industry members that generates $2.3 trillion in economic output and supports 15.3 million jobs. The association’s mission is to increase travel to and within the United States.

Global Business Travel Association: Wash., D.C.-based Global Business Travel Association (GBTA) is a business travel and meetings trade organization with operations on six continents. Its 9,000-plus members manage more than $345 billion in global business meeting expenditures annually and provide travel professionals and contacts with world-class education, events, research, advocacy and media.

Global Business Travel Association Foundation: The GBTA Foundation is the education and research foundation of the Global Business Travel Association, established in 1997 to support GBTA’s members and the industry as a whole. As the leading education and research foundation in the business travel industry, the foundation is a 501(c)(3) nonprofit organization. For more information, visit the GBTA.

Annual Events and Conferences

Annual conferences and events provide travel industry professionals with networking and educational opportunities. Here are some examples:

Future Travel Experience Global: Las Vegas, NV (September 6-8 2017)
The 12th annual Future Travel Experience Global will the newest trends in travel and futuristic, end-to-end passenger experience. The three tracks will include ‘Up In The Air’, ‘Terminal Design & Delivery’, and ‘Labs and Start-up Symposium.’ Past keynote speakers have featured executives from Uber, Jet Blue, and Microsoft.

No Vacancy: Sydney, Australia (October 2017)
No Vacancy is a one-day event focused on all aspects of booking and guest experience. The format will combine presentations, data, debates, panels, and small-group discussions on topics like online reputation management and customer loyalty in the age of social media, automation and machine learning.

Phocuswright Conference: Hollywood, Florida (November 6-9 2017)
Over the last 20 years, Phocuswright Conference has combined top names in travel, hospitality, transportation and technology. Past speakers have included senior executives from Kayak, Lyft and Airbnb. Phocuswright also features an innovation competition with live demonstrations and judging panels.

USTOA Annual Conference & Marketplace: Hollywood, FL (November 28-December 2 2017) The USTOA Annual Conference and Marketplace offers “Active Member” and “Associate Member” programs for tour operators. The interactive venue includes presentations, case studies and tools of the trade. The conference is geared to travel companies with combined annual sales volumes of over $11 billion.

Join the growing community of travel companies that process with DigiPay Solutions

Thank you for taking the time to review this compendium to learn about available opportunities and solutions in the travel industry. We look forward to welcoming you to our growing merchant community.

Our online application takes minutes to complete. Once approved, our relationship managers will help you personalize your business management portal and leverage our full complement of secure payment gateway and chargeback management tools. They’ll help provision your processing account, eCommerce website and POS systems in brick-and-mortar stores.

DigiPay will also make it easy for your customers to find you, by helping you create an engaging online and in-store presence and seamless customer checkout experience. Take your travel business to the next level today at

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