Timeshare Company Credit Card Merchant Services

Financing For The Timeshares, Advertising & Resale And Timeshare Cancellation Companies

Traveling was something that was meant only for a few some decades back. However, that is no more the case now. Today, travelling has become a hobby for more and more people and from various income, strata are travelling. Traveling means a lot for spending especially on accommodation. And this is what gave rise to the concept of timeshare.

Timeshare is a method of vacation sharing. This has made it affordable to stay in property during a vacation. Here, a resort or a holiday home is being owned jointly by many. You thus buy a holiday home and you get to use it for some particular time period in a year. When you are not using the property, the other owners can use it. This concept is easy on the pocket and is beneficial for those who love to vacation frequently.

Why is there a need for an online merchant account for the Timeshare business?

Today many people are opting to use the benefits of timeshare and this has given rise to buying and selling of timeshare. The timeshare merchants advertise, sell and resell the timeshare in a similar manner like the other products. To buy a timeshare property one just needs to go online and buy it. Selling too can be done online through a timeshare merchant.

The transactions in the timeshare are done by the merchant account. This is a temporary account and here the money goes through before it gets deposited into your account. It is thus very similar to the online merchants that let the customers pay for products using their credit and debit cards through any payment gateway setup.

The merchant account is necessary because the payment processing that comes in for a stay through a client gets parked into the temporary account. This is the merchant account or the POS terminal and then the money gets credited to the timeshare property owners bank. For this intermediary service, the merchant account provider charges a minimum fee.

This means that one needs an online merchant account to carry out the transactions. It also helps to advertise the service and reach out to many clients spread across the globe. A merchant account provider for timeshare is a payment or a bank processor who accepts the timeshare business.

Timeshare merchant account denied by the other credit card processors


credit card processing companies like First Data, Paypal have denied offering a payment gateway to the timeshare business. This is because the timeshare business is considered to be a high-risk business.

When applying for a merchant account the business will be checked to see if it falls under the category of high-risk business. The business could be considered high-risk based on its:

  • chargebacks level

  • Refunds and returns

  • Bad credit history

  • In case of a new business that has no or very little history of credit card processing

  • Products that involve transactions of a very high amount

  • The account being terminated in the past because of huge cash backs

The customers today shy away from companies that do not give them the option to make online payments through the IPhone and Android apps. Thus without an online payment gateway, the high-risk businesses could lose out on customers which is unfair. The conventional merchant account providers do not allow the high-risk business a virtual terminal.

The timeshare business falls under the high -risk category because of the following reasons:

  • High-value transactions

  • These use Card Not Present transactions where the transaction gets completed on the internet or phone

  • Customer disputes are high in this industry

  • The advance bookings lead to a lot of time difference between when the sale was completed an when the product was delivered

  • Cancellations and refunds are high

Online merchant accounts for timeshare startup and new companies

If you are a new or a startup timeshare business then there is a high probability that you may find it difficult to get an online merchant account. The merchant account providers do not want to deal with the new business companies because the startup companies do not have a credit card processing history.

The high-risk online merchants would be ready to offer you a merchant account but be ready to pay extra. In such cases, you need to look for merchants that accept high-risk companies and who have experience in managing the merchant accounts for startups.

Domestic or offshore online merchant account options for the timeshare business

Domestic banking is preferred by many businesses because these are better in terms of security and also offer lower rates. However, that is not a reason to reject offshore banking companies.

The offshore merchant account providers are beneficial if you plan to have an international presence. It is important that you understand the options and then choose the one that fits your clients, your business model, and your operations.

Issues faced with a domestic merchant account

  • Low volume for processing

  • High costs of incorporation

  • Limited merchant providers

  • Corporate tax applicable

  • Tax liability

  • Requirements for annual accounting

  • Transaction possible only in the local currency

Pros of the offshore merchant accounts

  • Processing volume is high

  • Low costs of incorporation

  • Corporate tax is not applicable

  • The number of offshore merchant providers is many

  • Annual accounting not required

  • Very little or no tax

  • Transactions accepted in various currencies

The timeshare business could opt for either a domestic or an offshore banking option. However, first understand the pros and cons of each type.

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