The jet charter industry took a beating during the pandemic. But the industry is set to rebound with a vengeance. From $24.21 billion in 2020, the jet charter market is expected to reach $36.94 billion in 2028. As soaring corporate profits and household incomes increase demand for luxury services, operating a private jet company can help you build great wealth.
Although a very lucrative business, it’s not easy to turn a profit in this industry. Since most reservations are made on the internet or over the phone, you need a merchant account to process electronic payments. Traditional banks and payment processors often deny merchant accounts to jet charter companies because they regard them as high-risk businesses.
Despite being established businesses, most jet charter companies struggle to access the payments system. Financial institutions avoid these businesses because the industry is exposed to many risks. The few banks and processors that offer high-risk jet charter merchant accounts often impose monthly transaction limits, which can severely restrict your sales.
Why do jet charter companies have to go through so much hassle to get payment processing? Here are some reasons why you need specialized high-risk jet charter payment gateways:
The jet charter industry provides high-value services. A one-way charter flight from Los Angeles to New York City can cost $21,000-$24,000 on a piston-powered aircraft. High-value transactions are more prone to buyer’s remorse ⏤ and therefore, higher rates of friendly fraud.
Another reason why jet charter merchant accounts are high-risk is because of the prevalence of CNP payments in the industry. Most flight bookings are conducted online or over the phone using CNP transactions. These transactions experience more fraud than in-person payments.
From unexpected events to last-minute changes of mind, there are plenty of reasons why people cancel flights. Many cancellations happen beyond the allowable period, which results in no or partial refunds. It’s common for people to file chargebacks to get all their money back.
Although a lucrative industry, it’s also very expensive to operate a jet charter business. The steep operating costs expose jet charter companies to a greater risk of bankruptcy. Banks stay away from these businesses to avoid paying for chargebacks if the company goes broke.
Seamless Chex has over a decade of experience providing high-risk jet charter merchant accounts. Leveraging our close partnership with 25+ banks, we’ll find you an accommodating institution to underwrite your business. After setting up your merchant account, you can use our high-risk jet charter payment gateways to process credit card and ACH payments.
Establishing a merchant account is only half the trouble. In an industry fraught with high rates of chargebacks and payment fraud, keeping your merchant account will be tremendously challenging. Seamless Chex also offers cutting-edge dispute management solutions and chargeback reduction technologies to protect your account from the risk of termination.
Seamless Chex high-risk jet charter merchant account services:
Are you having a hard time finding a favorable high-risk jet charter merchant account? Is your current account provider devouring your profits with excessive fees? Whether you’re a new or established jet charter business, Seamless Chex can handle all your payment needs. Sign up for our free trial or contact us to learn how we can help you reach new heights of success.
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