Contributed by Briana Bonfiglio, Travel Market Report
No travel advisor wants to receive a chargeback on one of their bookings. They can be a headache to fight, whether it’s an unsatisfied client or family who takes a vacation they can’t afford.
But when a bad actor steals a credit card or commits identity theft to pay for travel, that’s when the situation rises to the level of fraud. In these cases, actual cardholders file a chargeback that cannot be recouped.
Although many suppliers’ booking platforms have technology in place to detect and halt these transactions, fraud still remains quite common in the travel industry. Cyberattacks on banks or credit unions have recently led to credit card information falling into the wrong hands. So, what’s a travel advisor to do?
All travel advisors should keep up to date with fraud education through their host agencies or frequent supplier partners. As our technological world rapidly changes, so do the fraudsters’ scamming tricks.
Here are five red flags that advisors should be aware of, especially when booking air and hotels for clients you don’t know featured recently by Travel Market Report.
1. Do you know the person? Always be on high alert when doing business with someone you don’t know. Getting to know the client better, and learning why they’re taking the trip, can help either put your mind at ease – or be on the lookout for more red flags. One of these red flags alone may not be cause for concern, but it’s important to watch out for them in case they pile up.
2. Did the card get declined? Cards can get declined for various reasons. Once you know you’ve entered the correct information, check in with the client. You can ask for a different payment method, a form of identification, or a signed credit card authorization to cover yourself.
3. Are they traveling close in? If a client is booking a hotel or flight for travel that’s only a month or less away, that’s a red flag, and you should be asking that client questions to make sure they’re sincere. You can also consider sending over a terms and conditions form for signature.
4. Does the name or address on the credit card not match the traveler’s? There are many times when different family members pay for a trip, and that’s OK. But this is yet another red flag to keep in mind and a conversation to be had with the client.
5. Is it air only, land only, or both, with a very high air cost? Fraudsters will sometimes book a high-priced air ticket for a few months out, then exchange it for a flight the next day – before the true cardholder realizes what’s happened. So always be wary of air-only bookings. Scammers may also book land with the air to throw you off the scent, though, so any expensive air tickets paired with lower-cost vacations are a red flag.
If you are looking for more information on accepting and processing payments related to travel bookings, consider enrolling in The Travel Institute’s Certified Travel Associate (CTA) program. You will learn tips on how to understand the payment process, accept payment when a client is not or is present, and much more.
