An issuer refers to a financial institution, usually a bank, that offers credit or debit cards to consumers and oversees the authorisation of transactions for the cardholder. In the travel sector, issuers are vital for facilitating seamless bookings and transactions, including flights, hotel stays, and packages. When a traveler uses their card for a purchase, the issuer confirms the cardholder's identity, verifies the availability of sufficient funds or credit, and approves the transaction if all conditions are satisfied. In addition to authorisation, issuers handle card-related matters such as disputes, chargebacks, and loyalty programs, which are crucial for fostering trust and ensuring satisfaction in significant travel expenditures.
For travel companies, issuers play a crucial role in the payment process, ensuring that transactions are secure and smooth for customers. Given that travel bookings frequently involve significant amounts or international payments, issuers evaluate the risk of each transaction and confirm its authenticity to safeguard against fraud. The responsibilities of an issuer go beyond merely approving transactions; they also manage chargebacks and disputes when cardholders express concerns. For instance, if a traveler disputes a hotel charge due to a service issue, the issuer oversees the dispute resolution process to ascertain if the cardholder is eligible for a refund. Furthermore, many issuers provide rewards programs that foster customer loyalty, which can impact booking decisions, especially for frequent travellers who may earn points or cashback on travel-related purchases.
Issuers encounter distinct challenges in the travel sector due to the substantial transaction amounts and the global nature of many purchases. Ensuring security is paramount for issuers, particularly with the increase in online travel bookings, which are more susceptible to fraudulent activities. High-value or international transactions often prompt security checks or declines as issuers strive to reduce fraud risk, potentially disrupting the customer experience when legitimate transactions are mistakenly flagged. Striking a balance between robust security and a seamless customer journey is a significant challenge for issuers; unwarranted declines can lead to lost bookings and customer dissatisfaction, while inadequate security measures may put both the issuer and the travel business at financial risk.
Additionally, issuers must navigate disputes and chargebacks, which are prevalent in the travel industry. Issues such as cancellations, no-show policies, and service inconsistencies can result in chargeback requests, necessitating issuers to investigate and resolve these disputes. Efficiently managing these cases is crucial to ensure fairness and uphold positive relationships between cardholders and travel providers.
Felloh’s payment platform is designed to assist travel businesses in their dealings with issuers, enhancing transaction authorisation and elevating the overall customer payment experience. By connecting with various issuing banks, Felloh empowers travel companies to manage cross-border transactions more efficiently, boosting approval rates and reducing declines for international bookings. This is especially beneficial for travel businesses catering to a global customer base, as Felloh’s platform minimises unnecessary obstacles that can hinder the booking process.
With access to real-time insights on issuer performance, Felloh allows travel companies to track approval and decline patterns, enabling them to swiftly identify and resolve issues. This data-driven strategy facilitates collaboration with issuers, ensuring smoother transaction processing for high-value bookings and decreasing the chances of transaction rejections. Additionally, Felloh’s platform simplifies chargeback management, aiding travel companies in navigating the dispute resolution process effectively, which helps mitigate revenue loss and safeguard customer relationships.
By collaborating with Felloh, travel companies acquire a dependable, issuer-compatible solution that boosts payment authorisation rates, upholds transaction security, and offers transparency in payment operations. This enhanced payment infrastructure enables travel companies to deliver a seamless booking experience for customers using a diverse array of cards, ensuring smooth payment processing and allowing customers to book their travel plans with confidence.
Felloh can process transactions across multiple merchant acquirers for a single business. With deep integrations across several providers, Felloh offers consistent data output and manages all front-end payment logic, allowing you to integrate once while gaining access to multiple acquirers.
