Changes to the ATOL scheme next year could reduce the cost of security with merchant acquirers if more holiday types are included, one company has said. The growth of dynamic packaging has caused acquirers to increase the security needed from travel companies in the last few years as it bypassed ATOL and meant several debit card transactions needed to be covered.
Nearly half (48%) of ABTA Travel Convention delegates told First Data Merchant Solutions it had seen security, and therefore cost, from acquirers increase on top of more than half of travel companies stating they had cash flow issues.
Although credit card transactions will still not be included in ATOL bonds, the inclusion of dynamic packaging will cover more debit card payments,particularly those online, and therefore level out the risks across holiday types. According to First Data’s research, 64% of travel companies have seen arise in online payments, particularly those with turnover between