Moneydirect, a multi-channel payment processing solution for the global travel and tourism industry, is rolling out a new payment solution using virtual credit cards to simplify the payment and reconciliation process for travel providers.
The virtual credit card is processed like a regular credit card and is available in several different currencies. It can reduce travel suppliers' invoice processing costs by more than 90 percent and improves their cash flow through quicker payment. It also offers customers a highly secured environment with built-in limitation settings for usage dates and payment amounts, as well a providing detailed reconciliation information.
The roll out of the virtual credit card follows Moneydirect's recent software developments, including enhancements to its cross-border, multi-currency payment and collection capabilities.
"Since entering the market in 2008, we have grown to more than 2,000 customers in North America, spurred by the need for travel companies to adopt online payment solutions as a way of reducing their costs," Moneydirect CEO Hans Olav Hagen said. "We have been particularly successful with solutions for mid-size companies, and will extend our payment solutions across the travel industry. We anticipate rapidly increasing transaction volume this year as we add new services and expand our customer base."
A primary application for the virtual credit is settlement of hotel transactions. For example, a travel supplier with yearly volume of $50 million paid to suppliers would typically incur costs of more than $225,000 for processing and reconciling transactions. These costs include labor, along with associated fees for wire transfers, currency conversion fees and lost interest on the float. The virtual credit card's simplified electronic reconciliation and elimination or reduction of many fees can save users more than $200,000.
In addition, the virtual credit card captures and tracks important booking details, including the reservation code, requester identifier, traveller name, hotel chain code/name, room type, rate code, hotel confirmation number and check-in/check-out dates.
"Virtual credit cards not only benefit the agencies booking travel, but many suppliers have been pushing for this solution because it streamlines their transactions with credit card settlement," explained Hagen. "They receive payment right after a guest receives service, reduce labor and material costs for invoice production, and cut down on payment disputes."
The virtual credit cards are part of the Moneydirect Supplier Payments solution, one of six main services the company offers. The others are:
* Moneydirect Easy Collect, which automates collection of funds from travel industry partners.
* Moneydirect Central Settlement, which automates collections and disbursements of funds in a single process.
* Moneydirect Traveler Payments, which enables the processing of credit cards on a secure platform.
* Moneydirect Direct Billing, which simplifies the billing and collection of corporate direct bill transactions.
* Moneydirect Commissions, which allows for efficient commission payment processing globally in a transparent bank-to-bank platform.
These enhanced payment solutions are being supported by the installation of a new technology platform at Moneydirect's global data center in Australia. The new hardware, which includes state-of-the-art blade servers, is already delivering faster processing and enhanced security for customers.
"We've seen growth in travel transactions during the first quarter and anticipate better overall industry performance during 2010," said Hagen. "As a market leader, Moneydirect is well-positioned to contribute to the success of our travel partners by providing them with creative, cost-effective payment solutions."