Related Credit Card Article

"Credit card firms clamp down on travel agents"

By admin | June 28th, 2009 | General

Over recent months, with the recession setting in, financial conditions becoming increasingly difficult and unemployment levels rising, the travel business has been viewed as a far higher risk than before by lenders.

This has been reflected in a clampdown by the credit card industry, which has been allegedly threatening smaller travel businesses with closure of merchant services or dramatic changes to the terms and conditions of the merchant services provided.

Many banks are said to be looking more closely at the travel companies that they work with following the collapse of a number of travel and travel related smaller companies over recent months.

This has resulted as the travel business, in particular smaller travel companies, being viewed as a far higher risk by lenders, and this has resulted in credit card companies and banks making this threat to some travel agents and companies.

Some travel agents are faced with having merchant services removed by banks and this would make it pretty much impossible for them to continue operating their businesses.

One travel agent said that his relationship with his bank, Barclays, had been going downhill of late, and some weeks ago the bank informed him that his merchant services were being withdrawn. He tried to go to alternative banks only to be told that they would not take on new business from travel companies.

He stated: “Three or four said they had a bar on taking on travel agents, as we are perceived as a bad risk. It was frustrating. They are nervous because there have been collapses in the industry, but there should not be a blanket ban on travel.”

He added: “They have absolutely no understanding of the travel industry. They need to be educated about where the risks are.”

Tags: barclays merchant services, credit card merchant, travel industry credit card merchants

Related Articles:

• More people taking up card from Provident Financial

  Over recent years the lender Provident Financial has become a well known name in the world of doorstep lending, and the firm has also now acquired a credit card division, Vanquis, which is know to cater for those with damaged credit who are looking for credit card facilities. Since the onset of the global credit...

• Effects of the credit crunch set to get worse

  The global credit crunch is something that most of us are sick of hearing about, most probably because the term sends shivers down the spines of anyone that doesn’t want to see the housing market or the economy go down the pan! The credit crunch has resulted in chaos on the financial markets, and the...

• Central bank deputy wants credit card firms to keep lending

  The deputy governor of the Bank of England has said that it is important for credit card firms to continue lending in order to help pull the UK out of the ongoing recession. Paul Tucker, the deputy governor of the central bank, was giving a speech the Association of British Insurers when he stressed the...

• Majority of borrowers receive full rate cut

  According to recent reports the majority of borrowers are to benefit from the recent Bank of England interest rate cut, with most lenders deciding to pass on the full 0.25% cut to customers. Although several major banks passed on the interest rate cut after the Bank of England’s decision, there were concerns that some lenders...

• Loss of Credit Card Perks

  If you have taken out a credit card and have used some of the little perks that the credit card companies gave you to entice you to join up with their card, is set for change. Instead of having your purchases protected with insurance and some offered cover for your car in case of a...

Other Recent Articles

Improvements to credit card lending

According to recent reports July saw improvements when it came to credit card lending in the UK, which many believe...

By Reno | September 2, 2010 | Read More

AA credit card makes changes in consumers’ favour

Changes have been made to AA credit cards that are designed to help consumers to save money on interest. In...

By Reno | September 2, 2010 | Read More

Good deals being limited by credit card providers

It has been claimed that good deals on credit cards are being limited by credit card providers, and although many...

By Reno | August 30, 2010 | Read More

Don’t lose your interest free facility on your credit card

Many people these days have interest free credit cards, and this is because these cards can offer great value for...

By Reno | August 27, 2010 | Read More

Default on credit card debt still big risk

It has been reported that banks and credit card providers are still viewing the possibility of defaults on credit card...

By Reno | August 27, 2010 | Read More