As an independent contractor, you must collect and apply all payments from your clients to their travel reservation. Due to Xstream Travel’s policy, and staying compliant with Seller of Travel Laws, independent contractors cannot process client credit cards directly (via Square, PayPal or other method) or collect monies into their own bank account and make payment with their business or personal credit cards.
Credit cards are the best way to take payment from your client, as you can process their payment directly on the supplier’s booking site. This way, there is no doubt that money has been applied, and the client may be entitled to additional insurance benefits (have your client check his/her cardholder benefits for automatic and/or added travel insurance protection). In addition, it makes operating your business much simpler. Make sure you always have your clients fill out a Credit Card Authorization Form, located in Forms & Documents or they may complete the secure form that you can put on your personal business website.
Differences of using a credit vs debit card
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Greater Fraud Protection; You can’t exceed $50 and the client is obligated to pay after the problem is resolved. |
Fraudulent activity you can be liable for $500 or more, depending how fast you report the transaction. |
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An effective way to build a good credit record. |
Substitute for paying by check, this has no impact on your credit score. |
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Bookings hotels or renting a car may only accept credit cards. |
When booking with a supplier your bank may place a hold of several hundred dollars, which freezes funds in your bank account, which can cause an inaccurate balance. |
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Credit cards have a credit limit. |
Debit cards have daily limits for the amounts charged, normally less than $2500 so sometimes a card will decline for payment. Even if the client has the money in the bank; that client needs to contact their bank to see if they can up their daily limit. |
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Credit card users are responsible to pay their balance and can occur an interest fee. |
Payment is immediately taken from your bank account |