Bank card security clampdown threatens travel business future
August 10, 2009
A new policy change at HSBC is said to be putting many travel businesses at risk in the current economic climate.
The bank is now requiring that companies come up with as much as tens of thousands of pounds in “security” or lose the facility for processing credit cards.
In many cases, operators are being given 60 days to pay the security amount, and have been informed that their contracts will be terminated if they do not.
HSBC’s move has come after its re-classification of the travel industry to the “high risk” category, due to a number of high-profile company failures.
The bank is currently reviewing all of its clients in the travel industry, individually.
Other banks have been introducing more stringent policies in the card-processing area as well.
Michael Threlfall, the ABTA marketing manager, said that his organization had been contacted by members concerned over this change in banking policy.
He noted that Barclays Merchant Services and Streamline, the credit card market’s two largest players, have tightened their criteria recently as well, although to a lesser degree than HSBC.
Threlfall commented: “HSBC seems to be by far the most punitive and has obviously decided to take a step back from the industry.”
He went on to say: “After the banking crisis, they are imposing very punitive terms, presumably knowing that their customers will not be able to meet them.”
Thanks to www.travelmole.com for the above quotes, for more information on this article please visit their website.
Related Posts
Comments
Advertisement
