How has the Covid-19 pandemic affected travel payments?

The Covid-19 pandemic has had a significant impact on travel payments, with numerous changes occurring due to travel restrictions, cancellations, and changes in consumer behaviour. Here are a few of the ways in which the pandemic has affected travel payments, and how Axcess Merchant Services can help you keep your payments in check in a post-Covid world.

Increase in chargebacks.

Chargebacks occur when customers dispute a payment with their credit card issuer, usually due to a problem with the product or service they received. With the pandemic, there has been an increase in chargebacks related to travel cancellations and refunds. Axcess Merchant Services offers complete chargeback administration, making it easier than ever to resolve chargebacks quickly and efficiently.


With widespread cancellations of travel plans due to lockdowns and border restrictions, there has been an increase in refund requests. Many airlines, hotels, and travel companies have had to issue refunds, resulting in a surge in payment reversals and an overall decrease in cashflow.

Bank perception of travel risk.

The pandemic has made banks more cautious about travel-related payments due to the uncertainty and volatility of the travel industry. Banks are now more likely to flag transactions related to travel as high-risk, which may lead to more rigorous scrutiny and delay in processing.


The Covid-19 pandemic has had several impacts on payment security, with new risks emerging and existing risks becoming more pronounced. The pandemic has led to an increase in travel-related fraud, as fraudsters take advantage of the uncertainty and chaos in the travel industry. Phishing scams, fake travel websites, and fraudulent travel bookings have become more prevalent, making it harder for travellers to distinguish between legitimate and fraudulent offers. At Axcess, we provide you with key fraud prevention tools to minimise security risks, keeping your business secure and profitable.

Customer perceptions.

The Covid-19 pandemic has led to changes in customer perceptions of travel payments, with more focus on safety, flexibility, and risk mitigation. The pandemic has led to changes in travel booking behaviour, with many customers now opting for more flexible booking policies and payment terms. Customers now prefer travel providers that offer flexible cancellation policies and payment options, as the pandemic has increased uncertainty and the risk of cancellations and changes in travel plans.

Acquirers exiting travel.

The Covid-19 pandemic has led to financial challenges for travel acquirers, and some have exited the industry due to the uncertainty and risks associated with supporting travel merchants. Of course, the pandemic caused significant uncertainty in the travel industry, with many travel providers struggling to survive. Acquirers may have found it challenging to predict the future of the industry and the potential risks associated with continuing to support travel merchants.

Increasing collateral terms.

Travel payment providers may increase their collateral requirements to mitigate the risks associated with travel merchants. This may involve requiring travel merchants to provide more collateral, such as cash reserves, to ensure that they can meet their financial obligations. At Axcess, we work with acquirers that have tools to mitigate risk ensuring you can operate with the most competitive settlement and collateral terms on the market.

Overall, the Covid-19 pandemic has had a profound impact on the travel industry, with significant changes in payment patterns, customer behaviour, and payment terms. Here at Axcess Merchant Services, we have decades of experience providing merchant services and merchant accounts for travel companies, we understand the complexities of the travel supply chain. Find out more about our travel payment processing today.

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