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5 signs to evaluate your OTA payment processing for better efficiency

November 21, 2023

For online travel agencies (OTAs), the choice of a payment provider is critical, influencing aspects from cash flow to reliability, acceptance, and profitability. In this article, we explore key signs that indicate it’s time for OTAs to assess their payment processing solutions, focusing on optimizing for “OTA payments.”

Challenge 1: Cash flow

Online travel agencies, with suppliers globally, often face challenges in payment delays. Recent Phocuswright research reveals that 38% of travel suppliers experience delays in receiving payments from OTAs. To enhance relationships and maintain cash flow, consider a solution that enables real-time payments. Integration of Virtual Card Numbers (VCNs) with a line of credit allows for streamlined processes, benefiting both OTAs and their partners.

Challenge 2: Payment fraud

Fraud in payment processing is a growing concern, with 56% of travel suppliers worried about fraudulent transactions. WEX VCNs, as single-use cards, significantly reduce the risk of fraud by allowing users to set precise transaction amounts and control Merchant Category Codes (MCC) and charge effective periods. Additionally, VCNs come with built-in chargeback protection, offering peace of mind in handling fraud or payment disputes.

Challenge 3: Lack of support, guidance, and innovation

Choosing a payments provider should be more than a transaction; it should be a partnership. Look for a provider with deep knowledge of the travel industry, offering support, guidance, and innovation. Ensure that a dedicated relationship resource is provided for implementation, troubleshooting, and continuous innovation tailored to your business needs.

Challenge 4: Outsourced card processors

Avoid the frustration of unexpected card declines by selecting a payment provider with its own processor. Many providers use outsourced processors vulnerable to maintenance outages. WEX, as a payments provider with an in-house processor, guarantees rock-solid payment processing with 99.99% uptime, avoiding disruptions caused by external updates.

Challenge 5: Paying travel suppliers in foreign currencies

Global partnerships in the travel industry introduce complexities in payments, including exchange rates and foreign exchange fees. Partner with a payments provider equipped to issue payments in multiple currencies. WEX, for example, facilitates virtual card issuance in 22 different currencies worldwide, reducing cross-border fees and currency exchange risks, potentially saving up to 3% on foreign payments.

In conclusion, your payments processing solution can either hinder or help your business. Explore various options and choose a solution that offers expertise, innovation, and a commitment to collaborative partnership.

To learn more about the WEX Virtual Card, email, or learn more here.

This blog post was originally published in 2020 and was most recently updated in November 2023.

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