Standing in long queues to get hold of the ticket to your favourite show or event is now a thing of the past. In this day and age, most individuals are able to access products and services at the click of a button with their internet-enabled smartphone or tablet. Keeping up with the current trends, services providers continue to compete to develop user-friendly apps for Android and iOS to facilitate hassle-free ticket purchases.
According to GlobeNewswire, the total online event ticketing market was valued at US$49.2 billion in the year 2020 and is expected to reach $61.7 Billion by 2027
With the advent of innovations like digital tracking, mobile wallets and fingerprint scanning coupled with other technological advancements, it is likely that online ticket sellers will remain the primary source of tickets for years to come.
Types of online ticketing merchants accepted by CutPay
- Sporting events (football, baseball, basketball, soccer, etc.)
- Children’s and family-themed performances
- Theatrical performances: Plays, Dance and Opera
- Music concerts
- Public appearances
- Fairs and festivals
- Other amusement and recreation services
Why the online ticketing industry is considered high-risk?
Online ticketing brokers are considered high-risk merchants by most banks and financial institutions due to a number of reasons.
1. High Ticket Items
Products or services are classified high-risk items when they carry a large cost or value. This contributes to the overall risk when the business is being assessed by an acquiring bank. Expensive items increase the likelihood of liability, especially in the case of credit card payments. Further, high-value items like online tickets are usually a source of attraction for fraudsters and scammers.
2. Huge Demands for Tickets At the Last Minute
Online ticket sales are more prone to fraudulent activity as the day of the event comes closer. Demand for tickets is high and this gives merchants the prerogative to sell them at a higher price. However, fraudsters will try to take advantage of the opportunity when the demand for tickets is at its peak. These scammers (or ‘scalpers as they are called) buy the tickets at the last minute through stolen credit cards. As soon as the ticket is delivered electronically, they re-sell them online at a higher price.
3. High chargeback turnover
Online ticketing merchant accounts are prone to high refunds or chargeback rates. These merchants are usually ‘future fulfilment’ businesses. This means that there’s a long window between when the customer makes the payment and when the product is delivered, even 6 months!
A lot can happen over this span of time: order adjustments, new bookings, or just outright cancellations occurring on a rolling basis. This uncertainty can cause confusion which can ultimately lead to errors. It is not uncommon for customers to change their mind or make other plans which results in the buyer requesting for a refund from the ticket broker or even claim a chargeback from the bank.
‘Friendly-fraud’ is another problem that is rampant in the online ticket industry. There will always be people who would like to get a ‘free’ ticket to a very sought-after event or concert. Customers may call their credit card provider and deny their purchase. They may even claim that the transaction was due to a fraudulent activity. Hence, a lot of online ticket brokers now have controls in place to fight fraudulent chargeback claims, including CCTV footage, records of entrance, seating, etc.
Chargebacks can also occur due to customer confusion. Customers might forget and not recognize such a transaction in their bank statement.
Why Choose CutPay?
CutPay specializes in processing payments for online ticketing industry. We are one of the best merchant service providers for online ticket brokers in Europe and the UK.
With our extensive network of various acquiring banks, we can help you diversify the processing of your payments among multiple banks to mitigate risk as well as expand your business globally.
CutPay offers high-risk businesses a host of fraud and chargeback protection features as well as a secure payment gateway that provides adult businesses with long-term, reliable payment processing solutions.
|Industry Account Experts|
|Fast Account Approval|
|Medium/High Risk Accounts|
|Relationships with Leading Acquiring Banks|
|Large Merchant Case Studies|
|E-Commerce and Retail Options|
|B2B Vendors Supported|
|Multiple Payment Solutions|
|Multiple E-Commerce Gateway (Mobile apps or website)|
|B2B-Level II/III Data Discounts|
|3D Secure Frictionless Checkout|
|Level 1 PCI-DSS Merchant Gateway|
|Support & Guidance|
|International Merchant Accounts|
|Gateway Recurring Billing|
|E-Commerce Cart Plugins|
|Developer API /SDK/ Docs|
|POS/Terminals (Virtual or MOTO)|
|Dedicated Account Managers|
|Superior Customer Service|
Terms & ConditionsPlease click here to view the eligibility criteria, restrictions and requirements for an online ticket brokers to open a merchant account with us.
Ready to Get Started?
So are you an online ticket business that wants to open a high-risk merchant account? Don’t know where to start? Fear not – CutPay is here to solve all your problems!