Timeshare Merchant Account

Timeshare companies need to accept credit card payments from customers, which requires a merchant account.

Because timeshare businesses fall into the high risk category, it may be hard for them to find merchant services that will work with them.

Easy Pay Direct offers timeshare merchant accounts. We are a premier credit card processing solution for high risk businesses.

WHAT IS A TIMESHARE?

For half a century, timeshares have been an integral part of the travel industry.

Timeshares are a popular way for people to take advantage of vacation properties. Each party owns a share and has access to the property on specific dates. This is where the name timeshare comes from.

Properties may have up to 52 owners, each of whom can use the timeshare for one predetermined week a year. This means each party owns 1/52 of the timeshare. Owners that want to stay at the property for more than one week have to purchase additional time from another owner.

Some timeshares operate on a more flexible floating week system, but reservations need to be made well in advance.

WHAT IS THE ADVANTAGE OF PURCHASING A TIMESHARE?

Purchasing a timeshare can save money versus renting a similar property at a resort or other popular vacation destination.

Customers who might otherwise pay for a vacation getaway find they save money because they are only paying for the services they use.

WHAT IS THE DOWNSIDE?

Many timeshare owners find it difficult to commit to spending one particular week every year at the same vacation site. They may grow tired of it more quickly than expected.

Unlike other forms of real estate, most timeshares are not considered good investments. Owners may enjoy their timeshare but are not likely to make money on it when selling.

Depending on the contract, the owner may not be able to rent out the property if they cannot use it.

The weather has a huge effect on a travel or timeshare business. For example, a hurricane the week of an owner’s annual trip can be very problematic.

Excessive chargebacks are common in the timeshare industry, which affects how much these businesses must pay for credit card processing.

WHAT TYPES OF FEES DOES THE TIMESHARE INDUSTRY CHARGE CUSTOMERS?

Timeshare businesses must charge owners maintenance fees, which cover the costs of maintaining vacation resort facilities, utilities, and insurance. Some timeshare-related businesses may charge homeowners’ association fees.

Companies bill for these fees are billed annually, quarterly or monthly. Yearly vacation dues or those associated with travel clubs may make up additional fees.

WHY IS THE TIMESHARE INDUSTRY CONSIDERED HIGH RISK?

The timeshare industry tends toward high chargeback ratios, making it high risk. If a timeshare owner cannot make their scheduled vacation, they may try to dispute the charge on their credit card even though they have a contract with the timeshare business.

Buyers often purchase timeshares after attending a presentation touting the benefits of this type of vacation and taking advantage of special promotions. Buyer’s remorse may set in, and the purchaser wants their down payment money back.

Those are among the reasons excessive chargebacks for timeshare companies are common.

Because the timeshare industry is high risk, traditional banks do not offer merchant accounts to these businesses.

Instead, the industry must seek merchant services from payment processors who will charge higher rates.

HOW DO THIRD PARTIES AFFECT TIMESHARE RELATED BUSINESSES?

There are various players within the timeshare industry, including:

• • Timeshare brokers
  • Timeshare litigators
  • Resorts selling timeshares

When rentals or resales are available, contracted third party companies may expect the timeshare company to take care of credit card processing.

While brokers and resorts buy and sell timeshares, litigators specialize in getting timeshare owners out of their contracts.

Because timeshare litigators may offer customers a guarantee of getting their money back – a guarantee that doesn’t always come to pass – high chargeback ratios are likely.

HOW DOES A CREDIT CARD PROCESSOR DETERMINE RISK?

Every payment processor determines whether a business is high risk, and the chargeback ratio is among the top criteria.

Timeshare-related businesses virtually all fall into the category of high risk businesses. Since many banks do not offer merchant accounts to such businesses, the only options for timeshare owners are high risk merchant accounts.

WHAT ARE TIMESHARE MERCHANT ACCOUNTS?

A timeshare merchant account is a retail merchant account that allows timeshare companies to process credit card payments.

Timeshare businesses may have difficulty getting merchant accounts for payment processing because of their business model. That includes the monthly mortgage payments and annual dues associated with the timeshare industry.

Businesses operating in the travel industry will need high risk merchant accounts. Should such a business somehow get approved for a standard merchant account, a chargeback could trigger a review that results in the account getting closed.

For that reason, businesses in need of a timeshare merchant account should never try to take advantage of the low rates available from standard merchant service providers. The danger of suddenly no longer having the ability to accept payments is too great.

WHAT HAPPENS WHEN AN OWNER STOPS MAKING TIMESHARE PAYMENTS?

Getting rid of an unwanted timeshare is not easy. Even though the process harms their credit score, some customers who no longer want to make timeshare payments just stop paying their bills.

If the owner stops paying timeshare fees, a judicial foreclosure process starts, as with any real estate purchase.

WHAT IS A PAYMENT GATEWAY FOR A TIMESHARE COMPANY?

Merchant services providers offer payment gateways, which are tools for approving or declining payments. The payment gateway integrates with the shopping cart on the business website.

ONLINE PAYMENT PROCESSING

While some customers still purchase timeshares after attending sales events, many look for these properties online.

That’s why online payment processing is a must for all aspects of timeshare businesses.

ON-SITE PAYMENT PROCESSING

On-site payment processing allows businesses to accept customer payments at sales events. Many use credit cards to make down payments on timeshare properties.

Options for on-site payment processing include:

• • Card terminals -Traditional countertop terminals are still among the most common form of on-site payment processing. They accept various payment types, including gift cards.
  • POS systems – These systems involve the Point of Sale, or where the customer makes their payment. They are physical pieces of hardware that typically include EMV chip readers and an option to swipe cards.
  • Mobile card readers – These devices function as a mobile POS system. While basic mobile card readers permit swiping, more sophisticated readers accept chip and contactless payments.
  • Virtual terminals – A virtual terminal is a website that business owners can use to accept many forms of payment.

WHY DO TIMESHARE BUSINESSES EXPERIENCE CHARGEBACKS?

Timeshare businesses experience chargebacks because the timeshare owner cancels the vacation or simply changes their mind.

A timeshare is a long-term financial commitment. The owner’s personal or financial situation may change, making the timeshare no longer affordable.

Unfortunately, selling a timeshare is not always easy. The owner may come up with excuses for the credit card company to avoid paying fees for a timeshare they no longer want.

WHAT IS A LOW CHARGEBACK RATIO?

Standard risk businesses have an average chargeback ratio of 0.60%, or six out of every 1,000 transactions.

Merchant accounts provided by traditional banks often impose a chargeback ratio limit of 1%. Businesses exceeding that limit are considered high risk.

In 2019, before the pandemic, the travel industry accounted for a whopping one out of eight chargebacks. Since then, chargeback ratios for the travel industry have risen.

A high chargeback ratio affects the business’ ability to accept credit card payments. Without a high risk merchant account, these companies might cease to exist.

HOW CAN TIMESHARE COMPANIES AVOID CHARGEBACKS?

High chargeback ratios are the reason the timeshare industry is in the high risk category.

There are ways for timeshare companies to keep chargeback ratios low.

Putting a chargeback mitigation plan in place by working with a company specializing in this service can lower chargeback ratios. Chargeback mitigation companies notify the travel or timeshare businesses when detecting potential chargebacks.

These companies contact the timeshare company if a customer starts a dispute. If the travel or timeshare business issues a prompt refund, no actual chargeback occurs.

HOW ARE TIMESHARE MERCHANT ACCOUNTS DIFFERENT FROM TRAVEL MERCHANT ACCOUNTS?

There is a great deal of overlap between travel businesses and timeshare industries. Timeshares make up a significant part of the travel industry.

Travel businesses all fall into the high risk category. However, travel businesses are more vulnerable to fraudulent transactions than timeshare businesses.

That doesn’t mean fraud can’t occur within the timeshare industry.

It’s possible that someone with a stolen credit card may buy a timeshare with the intention of quickly selling it to another party. Timeshare scams are quite common.

Of course, once the owner of the credit card discovers the fraud, a chargeback results.

Travel businesses are high risk because of the high value nature of their services. Credit card fraud just takes on a different dimension in timeshare businesses.

A travel or timeshare business can both benefit from the payment solutions offered by Easy Pay Direct. We provide merchant accounts for every aspect of the travel industry.

WHAT IS A ROLLING RESERVE FOR A TIMESHARE MERCHANT ACCOUNT?

Businesses with a high chargeback history may find that the banks working with high risk merchant account providers will require a rolling reserve.

That means the payment processor holds back a small percentage of money for a predetermined time in case of a chargeback or refund.

The merchant account provider releases funds to the business bank account on a rolling basis.

WHAT ARE PAYMENT PROCESSING FEES FOR TIMESHARE MERCHANT ACCOUNTS?

Payment processing fees for a timeshare merchant account may include:

• • One-time setup fee
  • Transaction fees – The actual fee depends upon the credit card type, with American Express on the higher end. Overall, this fee ranges between 1.5% to 3.5% per transaction.
  • Monthly subscription fee – For businesses offering recurring billing and other services.

Payment processing fees will vary depending on the amount of money processed monthly. The average transaction amount and the total sum of monthly payments received may play a role in what business owners may expect to pay payment processors.

Some payment processors may charge a monthly fee, while others do not.

Expect any chargebacks to incur an additional fee from credit card processors.

WHAT SHOULD TIMESHARE COMPANIES LOOK FOR IN A MERCHANT ACCOUNT PROVIDER?

It is critical to work with a company that understands the travel or timeshare business.

Timeshare businesses need a merchant services provider who can provide them with recurring billing for their customers’ maintenance fees.

You also want a merchant account provider who does not charge excessive fees.

Easy Pay Direct meets all the requirements for timeshare companies seeking high risk merchant accounts.

WHAT DO MERCHANT ACCOUNT PROVIDERS LOOK FOR DURING THE APPROVAL PROCESS?

The approval process for timeshare merchant accounts differs somewhat from traditional merchant accounts.

Merchant account providers look at the applicant’s credit history, both personal and business, and the company’s business model.

Other criteria vary according to the high risk merchant account provider.

At Easy Pay Direct, we approve high risk accounts promptly, so you can accept payments via credit card in a matter of days.

HOW EASY PAY DIRECT CAN HELP

We specialize in high risk merchant accounts. We provide merchant accounts for travel or timeshare-related businesses.

We customize our payment processing solutions according to your needs.

With our fast approvals, we can have your timeshare merchant account up and running in just a few business days. We also provide excellent customer support.

Here’s our guarantee: If you don’t love the system for any reason within 30 days of your account setup, Easy Pay Direct will refund your setup fee AND your first month’s payment of $29.97.

Over 60,000 businesses have worked with Easy Pay Direct. For more information, please contact us at 800.805.4949 or get started here.

Timeshare companies need to accept credit card payments from customers, which requires a merchant account.

Because timeshare businesses fall into the high risk category, it may be hard for them to find merchant services that will work with them.

Easy Pay Direct offers timeshare merchant accounts. We are a premier credit card processing solution for high risk businesses.

WHAT IS A TIMESHARE?

For half a century, timeshares have been an integral part of the travel industry.

Timeshares are a popular way for people to take advantage of vacation properties. Each party owns a share and has access to the property on specific dates. This is where the name timeshare comes from.

Properties may have up to 52 owners, each of whom can use the timeshare for one predetermined week a year. This means each party owns 1/52 of the timeshare. Owners that want to stay at the property for more than one week have to purchase additional time from another owner.

Some timeshares operate on a more flexible floating week system, but reservations need to be made well in advance.

WHAT IS THE ADVANTAGE OF PURCHASING A TIMESHARE?

Purchasing a timeshare can save money versus renting a similar property at a resort or other popular vacation destination.

Customers who might otherwise pay for a vacation getaway find they save money because they are only paying for the services they use.

WHAT IS THE DOWNSIDE?

Many timeshare owners find it difficult to commit to spending one particular week every year at the same vacation site. They may grow tired of it more quickly than expected.

Unlike other forms of real estate, most timeshares are not considered good investments. Owners may enjoy their timeshare but are not likely to make money on it when selling.

Depending on the contract, the owner may not be able to rent out the property if they cannot use it.

The weather has a huge effect on a travel or timeshare business. For example, a hurricane the week of an owner’s annual trip can be very problematic.

Excessive chargebacks are common in the timeshare industry, which affects how much these businesses must pay for credit card processing.

WHAT TYPES OF FEES DOES THE TIMESHARE INDUSTRY CHARGE CUSTOMERS?

Timeshare businesses must charge owners maintenance fees, which cover the costs of maintaining vacation resort facilities, utilities, and insurance. Some timeshare-related businesses may charge homeowners’ association fees.

Companies bill for these fees are billed annually, quarterly or monthly. Yearly vacation dues or those associated with travel clubs may make up additional fees.

WHY IS THE TIMESHARE INDUSTRY CONSIDERED HIGH RISK?

The timeshare industry tends toward high chargeback ratios, making it high risk. If a timeshare owner cannot make their scheduled vacation, they may try to dispute the charge on their credit card even though they have a contract with the timeshare business.

Buyers often purchase timeshares after attending a presentation touting the benefits of this type of vacation and taking advantage of special promotions. Buyer’s remorse may set in, and the purchaser wants their down payment money back.

Those are among the reasons excessive chargebacks for timeshare companies are common.

Because the timeshare industry is high risk, traditional banks do not offer merchant accounts to these businesses.

Instead, the industry must seek merchant services from payment processors who will charge higher rates.

HOW DO THIRD PARTIES AFFECT TIMESHARE RELATED BUSINESSES?

There are various players within the timeshare industry, including:

• Timeshare brokers
• Timeshare litigators
• Resorts selling timeshares

When rentals or resales are available, contracted third party companies may expect the timeshare company to take care of credit card processing.

While brokers and resorts buy and sell timeshares, litigators specialize in getting timeshare owners out of their contracts.

Because timeshare litigators may offer customers a guarantee of getting their money back – a guarantee that doesn’t always come to pass – high chargeback ratios are likely.

HOW DOES A CREDIT CARD PROCESSOR DETERMINE RISK?

Every payment processor determines whether a business is high risk, and the chargeback ratio is among the top criteria.

Timeshare-related businesses virtually all fall into the category of high risk businesses. Since many banks do not offer merchant accounts to such businesses, the only options for timeshare owners are high risk merchant accounts.

WHAT ARE TIMESHARE MERCHANT ACCOUNTS?

A timeshare merchant account is a retail merchant account that allows timeshare companies to process credit card payments.

Timeshare businesses may have difficulty getting merchant accounts for payment processing because of their business model. That includes the monthly mortgage payments and annual dues associated with the timeshare industry.

Businesses operating in the travel industry will need high risk merchant accounts. Should such a business somehow get approved for a standard merchant account, a chargeback could trigger a review that results in the account getting closed.

For that reason, businesses in need of a timeshare merchant account should never try to take advantage of the low rates available from standard merchant service providers. The danger of suddenly no longer having the ability to accept payments is too great.

WHAT HAPPENS WHEN AN OWNER STOPS MAKING TIMESHARE PAYMENTS?

Getting rid of an unwanted timeshare is not easy. Even though the process harms their credit score, some customers who no longer want to make timeshare payments just stop paying their bills.

If the owner stops paying timeshare fees, a judicial foreclosure process starts, as with any real estate purchase.

WHAT IS A PAYMENT GATEWAY FOR A TIMESHARE COMPANY?

Merchant services providers offer payment gateways, which are tools for approving or declining payments. The payment gateway integrates with the shopping cart on the business website.

ONLINE PAYMENT PROCESSING

While some customers still purchase timeshares after attending sales events, many look for these properties online.

That’s why online payment processing is a must for all aspects of timeshare businesses.

ON-SITE PAYMENT PROCESSING

On-site payment processing allows businesses to accept customer payments at sales events. Many use credit cards to make down payments on timeshare properties.

Options for on-site payment processing include:

• Card terminals -Traditional countertop terminals are still among the most common form of on-site payment processing. They accept various payment types, including gift cards.
• POS systems – These systems involve the Point of Sale, or where the customer makes their payment. They are physical pieces of hardware that typically include EMV chip readers and an option to swipe cards.
• Mobile card readers – These devices function as a mobile POS system. While basic mobile card readers permit swiping, more sophisticated readers accept chip and contactless payments.
• Virtual terminals – A virtual terminal is a website that business owners can use to accept many forms of payment.

WHY DO TIMESHARE BUSINESSES EXPERIENCE CHARGEBACKS?

Timeshare businesses experience chargebacks because the timeshare owner cancels the vacation or simply changes their mind.

A timeshare is a long-term financial commitment. The owner’s personal or financial situation may change, making the timeshare no longer affordable.

Unfortunately, selling a timeshare is not always easy. The owner may come up with excuses for the credit card company to avoid paying fees for a timeshare they no longer want.

WHAT IS A LOW CHARGEBACK RATIO?

Standard risk businesses have an average chargeback ratio of 0.60%, or six out of every 1,000 transactions.

Merchant accounts provided by traditional banks often impose a chargeback ratio limit of 1%. Businesses exceeding that limit are considered high risk.

In 2019, before the pandemic, the travel industry accounted for a whopping one out of eight chargebacks. Since then, chargeback ratios for the travel industry have risen.

A high chargeback ratio affects the business’ ability to accept credit card payments. Without a high risk merchant account, these companies might cease to exist.

HOW CAN TIMESHARE COMPANIES AVOID CHARGEBACKS?

High chargeback ratios are the reason the timeshare industry is in the high risk category.

There are ways for timeshare companies to keep chargeback ratios low.

Putting a chargeback mitigation plan in place by working with a company specializing in this service can lower chargeback ratios. Chargeback mitigation companies notify the travel or timeshare businesses when detecting potential chargebacks.

These companies contact the timeshare company if a customer starts a dispute. If the travel or timeshare business issues a prompt refund, no actual chargeback occurs.

HOW ARE TIMESHARE MERCHANT ACCOUNTS DIFFERENT FROM TRAVEL MERCHANT ACCOUNTS?

There is a great deal of overlap between travel businesses and timeshare industries. Timeshares make up a significant part of the travel industry.

Travel businesses all fall into the high risk category. However, travel businesses are more vulnerable to fraudulent transactions than timeshare businesses.

That doesn’t mean fraud can’t occur within the timeshare industry.

It’s possible that someone with a stolen credit card may buy a timeshare with the intention of quickly selling it to another party. Timeshare scams are quite common.

Of course, once the owner of the credit card discovers the fraud, a chargeback results.

Travel businesses are high risk because of the high value nature of their services. Credit card fraud just takes on a different dimension in timeshare businesses.

A travel or timeshare business can both benefit from the payment solutions offered by Easy Pay Direct. We provide merchant accounts for every aspect of the travel industry.

WHAT IS A ROLLING RESERVE FOR A TIMESHARE MERCHANT ACCOUNT?

Businesses with a high chargeback history may find that the banks working with high risk merchant account providers will require a rolling reserve.

That means the payment processor holds back a small percentage of money for a predetermined time in case of a chargeback or refund.

The merchant account provider releases funds to the business bank account on a rolling basis.

WHAT ARE PAYMENT PROCESSING FEES FOR TIMESHARE MERCHANT ACCOUNTS?

Payment processing fees for a timeshare merchant account may include:

• One-time setup fee
• Transaction fees – The actual fee depends upon the credit card type, with American Express on the higher end. Overall, this fee ranges between 1.5% to 3.5% per transaction.
• Monthly subscription fee – For businesses offering recurring billing and other services.

Payment processing fees will vary depending on the amount of money processed monthly. The average transaction amount and the total sum of monthly payments received may play a role in what business owners may expect to pay payment processors.

Some payment processors may charge a monthly fee, while others do not.

Expect any chargebacks to incur an additional fee from credit card processors.

WHAT SHOULD TIMESHARE COMPANIES LOOK FOR IN A MERCHANT ACCOUNT PROVIDER?

It is critical to work with a company that understands the travel or timeshare business.

Timeshare businesses need a merchant services provider who can provide them with recurring billing for their customers’ maintenance fees.

You also want a merchant account provider who does not charge excessive fees.

Easy Pay Direct meets all the requirements for timeshare companies seeking high risk merchant accounts.

WHAT DO MERCHANT ACCOUNT PROVIDERS LOOK FOR DURING THE APPROVAL PROCESS?

The approval process for timeshare merchant accounts differs somewhat from traditional merchant accounts.

Merchant account providers look at the applicant’s credit history, both personal and business, and the company’s business model.

Other criteria vary according to the high risk merchant account provider.

At Easy Pay Direct, we approve high risk accounts promptly, so you can accept payments via credit card in a matter of days.

HOW EASY PAY DIRECT CAN HELP

We specialize in high risk merchant accounts. We provide merchant accounts for travel or timeshare-related businesses.

We customize our payment processing solutions according to your needs.

With our fast approvals, we can have your timeshare merchant account up and running in just a few business days. We also provide excellent customer support.

Here’s our guarantee: If you don’t love the system for any reason within 30 days of your account setup, Easy Pay Direct will refund your setup fee AND your first month’s payment of $29.97.

Over 60,000 businesses have worked with Easy Pay Direct. For more information, please contact us at 800.805.4949 or get started here.