February 3 , 2016
Payment fraud remains top concern for Canadian travel agents
Vancouver--Payment fraud remains the top concern for travel agents, exclusive research commissioned by eNett International reveals today. World leading market research company, Euromonitor, interviewed leading travel agencies across Canada and found fraud prevention remains the key priority when it comes to supplier payments.
Designed to gain an insight into Canada's current supplier payments landscape, the study showed current industry trends are forcing agents to reassess their payment methods. For example, Canadians continue to make more international trips, and to more exotic destinations. In 2013 alone, over CA$30 billion was spent overseas. Consequently, agencies need to make more payments to previously unknown suppliers, in riskier locations.
Traditionally a market where checks have been prevalent, there's now a shift toward online payments, bringing a reliance on credit cards which are inherent with misuse and data theft. It is also leading agencies to reassess pass-through as the primary method of paying suppliers. The research found that 90% of all hotel bookings made by travel agencies were passing through the customer credit card. However, the responsibility for protecting the customer's details, and the loss of goodwill and money if details are used fraudulently, means agencies reported a growing reluctance amongst travel buyers and individuals to share card details.
eNett Managing Director and CEO, Anthony Hynes, said, "The research has shown how growing international and online payments are increasing the risk of fraud. Agencies are being driven to find alternative payment options that will enable them to keep up with industry trends, while protecting them and their customers from fraudulent transactions. Innovative technologies such as Virtual Account Numbers (VANs) already tackle these issues, enabling agencies to minimize fraud risks and remain competitive."
A VAN is an automatically generated 16-digit number used for supplier payments and can include payment parameters such as amount, currency, date and merchant, making it a more secure way to pay or be paid. It delivers reduced risk from fraud and supplier default, automated payments and reconciliation, and value back through rebates.