ASTA: Approval for merchant status now easier to come by

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ASTA Marketing Services Inc. believes it has finally solved a problem that bedeviled ASTA members in the last few years: Gaining approval when they apply for status as a credit card merchant.

In October, AMSI tapped a new vendor that gives members a good chance of obtaining merchant status.

According to Bob Kern, a Los Angeles travel agent and president of AMSI, in its first six months as an AMSI supplier, National Transaction Corp. of Coral Springs, Fla., approved 91.5% of ASTA applicants.

So far, the numbers are small (71 applicants, 65 approvals), but Kern said the goal was to get to a point where agents could get approvals, not to get big numbers. We needed to solve the problem first.

The initial successes should help bring in the numbers, too, he said.

AMSI previously had vendors for merchant programs, but the approval rates were too low, Kern said, and retailers need to become merchants has grown.

For one thing, he said, merchant status becomes more of an issue when agents sell an increasing amount of noncommissionable products. By taking plastic, he said, agents can sell net-priced products with mark-ups that are hidden from the customer.

Way bigger than service fees

He said, This is way bigger than service fees, the initial reason -- after airlines began cutting commissions -- that many agents began to shop for some ability to accept credit cards.

Credit card processors have often been wary of the travel business, figuring the risks are too high in businesses that sell services to be delivered at a later date.

Meanwhile, with NTC, the ASTA subsidiary offers Society members a program that provides for a $99 set-up and discount rates on cards not swiped, as follows: American Express, 2.75%; Discover, 2.25%; MasterCard and Visa, 2.39%, all plus 25 cents per transaction.

Rates for swiped cards are lower. In the case of MasterCard and Visa, the rate is 1.89% (plus 25 cents per transaction), Kern said.

To contact the reporter who wrote this article, send e-mail to Nadine Godwin at [email protected].

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