Do the costs for the MasterCard Global Wholesale Travel Program apply to your business?

Since 2015, MasterCard has had a fee for transactions with the virtual credit card.

What is the Global Wholesale Travel Transactions Program from MasterCard?

The Global Wholesale Travel Transactions Program from MasterCard was introduced in April 2015 by MasterCard to make business-to-business transactions simpler, quicker and safer. This program enables agents, booking offices and booking sites in the travel and entertainment sectors to acquire a virtual business MasterCard which can then be used to make payments to the relevant party (could be an airline or hotel) when a consumer makes a booking.  More information can be found on the Mastercard website.

How does the Global Wholesale Travel Transactions Program from MasterCard work?

A consumer or user of your service can make a payment in two ways:

  • Directly; 
  • Indirectly; An indirect payment runs via an intermediary such as a travel agent, booking office, booking site or agency. The consumer completes a transaction with an agent (initial transaction), then the agent pays an amount to you (secondary transaction). During the secondary transaction, the agent has the option (alongside paying via invoice or digital bank transfer) to provide a virtual business card to make the payment. This virtual card differs from a regular business card as it is digital, and a unique credit card number is created for every payment.

 

What are the advantages of me accepting this card?

Acceptance of this digital MasterCard offers several benefits:

  • Secure payment methodWhen the virtual card is offered by you, the MasterCard system generates a unique, virtual card number. This reduces the risk of fraud and increases the safety of card usage;

  • Limited riskWhen paying by invoice, there is a chance that a payment could be late or not received at all. This card allows the transaction amount to be charged to the card holder immediately and the risk of non-payment or late payment is significantly reduced;

  • Lower risk or errorsThere is a risk of human error in relation to regular bank transfers. This could include incorrect entry of the amount or payment to the wrong account number. The chance of errors is substantially reduced by credit card transactions;

  • Accelerated paymentThe payment term for a credit card transaction is usually much shorter than for payment of paper invoices with a payment term;

  • Global program. The card can be used for incoming bookings from around the world. Card holders from Europe, but also outside Europe, can make bookings with the travel agent, booking agent or on the booking site with which you collaborate. The agent can then use the virtual, business card for all of these transactions so that you can be paid quickly;

 
Why do I have to pay an extra fee for MasterCard's virtual card?

Since the introduction of the Global Wholesale Travel program in 2015, MasterCard has been charging costs to European Merchant Services. The fact that these costs are part of the overall costs/commission for each transaction processed means we pass them on. We have been passing these costs on since April 2016.

What can I do to stop accepting this card?

You are advised to contact the travel agent, booking office or booking site with which you collaborate. You can decide, with them, which payment method you prefer.

What are the costs for accepting this virtual MasterCard?

When this card is used, a charge of 0.60% of the transaction amount will be charged. This amount is in addition to the agreed commission percentage.

Do I get an overview of the transactions completed using this virtual card?

Each month you receive a statement of the completed transactions for the previous month.  The costs amount to 0.60% of the transaction amount on top of the agreed commission percentage. Your specification shows the calculation of these costs for all connections.

 

Do you have any further questions? Please contact customer service. We are glad to help.