When a customer makes a purchase on a credit card for more than £100, the merchant services provider providing the credit facility is obliged by law to guarantee that purchase (ie if it is sub-standard or doesn’t comply with its description, or if the if the company who sold the arrangements to the customer becomes insolvent, the credit card company has to refund the customer the money it has paid for those arrangements).
Having consumer funds held on trust in a travel trust account means that merchant services suppliers can be confident that any money they do pay out under these guarantees is available to be reclaimed from the account holder via the trust account.
With merchant facilities notoriously difficult for travel companies (particularly new start up travel companies) to get, having a travel trust account in place will help to persuade a merchant services provider to grant a facility on reasonable terms and without the need for expensive ABTA protection, ATOL bond or rolling reserve.
We have spent literally years educating the travel merchant facilities sector in the risk-minimising benefits associated with Serenity’s unique travel trust accounting structures. We have our rewards though: we now have well-established relationships with the main merchant facility providers in the industry such that we are able to negotiate favourable rates, terms and streamlined application processes for our account holders via a number of different routes.