Private aviation businesses can have a more complex payment profile than many conventional merchants.
Bookings may involve high-value transactions, international customers, corporate and commercial cards, deposits paid well before travel, telephone payments, payment links and multiple currencies.
This does not mean every private aviation company is automatically treated the same way by payment providers. An aircraft operator, charter broker, aviation marketplace and corporate travel business can each have a different acquiring profile.
Payment providers may assess average and maximum transaction values, how far in advance customers pay, who provides the flight, customer location, refunds, chargebacks, processing history, financial strength and the total value of bookings that have been paid for but not yet flown.
Private aviation businesses should therefore compare acquiring and gateway providers on their ability to support the complete payment model rather than simply comparing the headline transaction rate.
Which private aviation businesses need payment processing?
The term private aviation can describe several different business models.
These may include:
- private jet operators;
- air charter operators;
- charter brokers;
- business aviation companies;
- helicopter charter businesses;
- aviation marketplaces;
- aircraft management businesses;
- corporate travel providers; and
- businesses arranging specialist or luxury air travel.
The payment provider needs to understand which role the merchant actually performs.
For example, an aircraft operator selling its own flight may present a different contractual and payment structure from a broker collecting money before paying an operator.
That distinction can affect underwriting, settlement and the information a payment provider requests.
Why can private aviation payment processing be more complex?
Several features of the private aviation model can affect acquiring risk.
These commonly include:
- high-value transactions;
- payments received before the date of travel;
- international customers;
- commercial or corporate cards;
- card-not-present payments;
- large individual refunds;
- flight cancellations or changes;
- low transaction volumes combined with very high transaction values;
- cross-border acquiring requirements;
- multiple currencies; and
- potential exposure if a paid-for flight has not yet taken place.
An established operator with substantial processing history and short booking lead times may present a very different profile from a new broker accepting large advance payments several months before travel.
This is why provider appetite should be assessed against the actual business rather than the industry label alone.
For a wider explanation of provider appetite, visit our High-Risk Merchant Accounts guide.
Future-delivery risk in private aviation
Future-delivery risk is particularly important where a customer pays before the flight takes place.
Imagine a private aviation company processing £500,000 of card payments during a month.
If £1.5 million of previous customer payments also relate to flights that have not yet taken place, the payment provider may consider that outstanding exposure alongside monthly turnover.
The provider may want to understand:
- how far in advance customers normally book;
- the average period between payment and flight;
- the longest booking lead time;
- the total value of future bookings;
- how much is taken as a deposit;
- when final balances are collected;
- the cancellation policy;
- historic refunds;
- historic chargebacks; and
- what happens to customer money if a flight cannot operate.
Our Future-Delivery Risk guide explains this type of acquiring exposure in more detail.
High-value private jet transactions
Private aviation can involve individual card transactions substantially larger than those processed by a typical merchant.
A payment provider will usually want realistic information about:
- average transaction value;
- maximum transaction value;
- monthly processing volume;
- number of transactions;
- largest historic transactions; and
- the reason customers use cards for larger bookings.
Average and maximum transaction values should not be confused.
A business might normally process £5,000 card payments but occasionally accept a £40,000 booking.
If the provider has underwritten the merchant on the basis of much smaller transactions, a large unexpected payment may trigger additional review.
The business should therefore disclose realistic maximum transaction values during the application.
Read our High-Ticket Merchant Services guide for more information.
How do private aviation companies take card payments?
Payments may be collected through several different channels.
Pay by Link
Payment links can work particularly well for private aviation because bookings are often agreed through a sales team rather than a traditional ecommerce checkout.
The business can agree the itinerary and price with the customer and then send a secure payment link by email, message or invoice.
This can be used for:
- deposits;
- full flight payments;
- outstanding balances;
- additional services; or
- amendments to an existing booking.
Our Pay by Link guide explains this payment method in more detail.
MOTO and telephone payments
Some private aviation businesses take card details over the telephone using a MOTO-enabled virtual terminal.
MOTO payments are card-not-present transactions and providers may assess them differently from customer-initiated online payments.
The business should understand:
- MOTO transaction pricing;
- fraud controls;
- maximum transaction values;
- staff access to the virtual terminal;
- PCI DSS responsibilities;
- refund processes; and
- how evidence is retained if a transaction is later disputed.
Read our MOTO Merchant Accounts guide for more information.
Online bookings
Some operators or charter platforms allow customers to request, quote or pay for flights through a website or application.
This can require a payment gateway that connects the customer-facing booking system with the merchant acquiring relationship.
The integration may also need to connect:
- booking references;
- customer records;
- flight details;
- payment status;
- refunds;
- accounting software; and
- CRM or reservation systems.
Visit our Payment Gateways guide for more information about online payment infrastructure.
Find Suitable Payment Providers
Corporate and commercial card payments
Private aviation businesses may receive a significant proportion of payments from corporate or commercial cards.
This matters when comparing processing costs because different types of card can produce different acquiring costs.
A business with a large percentage of commercial-card transactions should therefore provide potential payment providers with an accurate card mix where possible.
Existing merchants can use processing statements to identify:
- consumer versus commercial cards;
- debit versus credit cards;
- domestic versus international cards;
- Visa and Mastercard volumes;
- American Express where applicable;
- average transaction value; and
- total card-processing cost.
For higher-volume aviation businesses, comparing pricing on the basis of actual processing data is more useful than relying on a single advertised percentage.
International card payments in private aviation
Private aviation is inherently international for many businesses.
A UK company might:
- operate flights between several countries;
- accept payments from customers around the world;
- quote flights in several currencies;
- use operators in different jurisdictions;
- have corporate customers based overseas; and
- settle funds into a UK or international bank account.
Simply being able to accept an overseas-issued card does not necessarily mean the business has the right international acquiring structure.
The payment provider should understand:
- where the merchant is incorporated;
- where the business is managed;
- where customers are based;
- where transactions are acquired;
- which entity signs the merchant agreement;
- which entity receives settlement;
- which currencies are accepted; and
- which countries need to be supported.
Our International Merchant Accounts guide covers this in more detail.
Multi-currency payments and settlement
A private aviation business may quote a flight in pounds, euros, dollars or another currency depending on the itinerary and customer.
The payment setup should therefore distinguish between:
- the currency displayed to the customer;
- the currency in which the card is charged;
- the acquiring currency;
- the settlement currency received by the merchant; and
- any currency conversion that takes place.
Businesses should understand where foreign-exchange charges arise rather than simply assuming that accepting multiple currencies means funds will also settle in those currencies.
Private aviation deposits and staged payments
Not every booking needs to follow the same payment structure.
A private aviation company might:
- take full payment when the booking is confirmed;
- take an initial deposit;
- collect a balance closer to departure;
- take several staged payments; or
- operate different terms for corporate account customers.
The payment structure can affect both cash flow and the acquiring risk profile.
The provider may want to know:
- how much is normally collected upfront;
- when the balance is taken;
- how far in advance customers pay;
- whether payments are refundable;
- how cancellations are handled; and
- the total value of bookings awaiting travel.
Refunds, cancellations and flight changes
Private aviation bookings can change after payment has been collected.
Examples include:
- customer cancellation;
- operator cancellation;
- aircraft substitution;
- schedule changes;
- weather disruption;
- airport changes;
- additional passenger requirements; and
- changes to the original itinerary.
The payment process should make it clear how any resulting refund, additional charge or partial refund is handled.
For larger transactions, businesses should also consider whether the provider places limits or additional checks on unusually large refunds.
Chargebacks in private aviation
A chargeback can be particularly significant when the original transaction is worth several thousand pounds.
Possible disputes might relate to:
- services not provided;
- cancellation disagreements;
- refund disputes;
- transactions the cardholder does not recognise;
- changes to the itinerary;
- fraudulent card use; or
- disagreement about the service provided.
Businesses should maintain appropriate evidence relating to each booking.
This can include:
- signed or accepted booking terms;
- itinerary;
- customer communications;
- payment confirmation;
- passenger details where appropriate;
- flight documentation;
- evidence the flight took place;
- cancellation records;
- refund records; and
- any agreed amendments.
Our Chargeback guide covers the wider dispute process.
Can private aviation businesses be asked for a rolling reserve?
Potentially.
A provider may use a reserve, delayed settlement or another risk-control arrangement where it believes there is significant outstanding exposure.
This is not automatic and terms vary between providers.
If a reserve is proposed, ask:
- what percentage or amount will be retained;
- how long funds will be held;
- whether there is a maximum reserve;
- when funds will be released;
- what could cause the reserve to change;
- whether the arrangement can be reviewed; and
- how the reserve interacts with settlement.
For a high-value aviation business, liquidity can be as important as headline processing cost, so reserve and settlement terms should form part of the commercial comparison.
Settlement timing for private aviation
Settlement requirements can differ depending on the acquiring relationship and merchant profile.
Some providers may offer standard settlement while others may apply delayed settlement, reserves or individual transaction review.
The aviation business should establish:
- normal settlement time;
- whether large transactions are treated differently;
- whether settlement is linked to travel dates;
- whether individual transactions can be held;
- what supporting evidence may be requested;
- how international settlements work; and
- how weekends and bank holidays affect settlement.
These terms should be understood before processing begins rather than after the first large booking is accepted.
ATOL and private aviation businesses
ATOL requirements depend on what the business is selling and the role it performs.
A private aviation business should not assume that every charter transaction requires ATOL protection, or that private aviation is automatically outside the ATOL regime.
The Civil Aviation Authority distinguishes between businesses such as aircraft operators, ATOL holders and businesses operating under specific exemptions when air travel is sold to UK consumers.
There are also specific rules and exemptions relating to areas such as:
- airline ticket agents;
- flight-only sales;
- flight-inclusive packages;
- general business travel agreements; and
- other exempt arrangements.
Private jet operators and charter brokers should establish which aviation and consumer-protection requirements apply to their own sales model rather than relying on the payment provider to determine this for them.
An acquirer may ask for evidence of relevant licences, permissions, agency arrangements or exemptions as part of underwriting.
Aircraft operator versus charter broker
This distinction can be particularly important during payment underwriting.
An operator may contract directly with the passenger and operate the aircraft.
A charter broker may instead arrange the flight with a separate operator.
Where a broker collects payment, the acquirer may want to understand:
- who contracts with the customer;
- who provides the flight;
- when the operator is paid;
- whether customer funds are held before the operator is paid;
- who is responsible for refunds;
- who carries the contractual obligation if the flight cannot operate;
- which jurisdictions are involved; and
- whether any regulatory permissions or exemptions apply.
This is another reason to describe the business model accurately when approaching payment providers.
What will an underwriter ask a private aviation business?
Requirements vary between payment providers, but the application may include:
- company and ownership information;
- business location;
- operator or broker status;
- website;
- licences or permissions where applicable;
- ATOL status or relevant exemption where applicable;
- processing statements;
- average monthly card turnover;
- average transaction value;
- maximum transaction value;
- customer countries;
- currencies;
- percentage of MOTO transactions;
- percentage of online or payment-link transactions;
- consumer versus corporate customers;
- booking lead times;
- value of future bookings;
- refund history;
- chargeback history;
- financial information; and
- details of previous declines or account termination.
An application that clearly explains these points gives the provider a much better basis for assessing the business.
What if a private aviation merchant account has been declined?
A decline from one provider does not mean every provider will reach the same decision.
Different acquirers have different sector appetites and risk policies.
Possible reasons for a decline may include:
- transaction values outside the provider's appetite;
- future-delivery exposure;
- long booking lead times;
- the broker or operator model;
- international customer exposure;
- MOTO volumes;
- chargeback history;
- financial information;
- licensing or regulatory concerns;
- previous processing history; or
- an incomplete application.
Before submitting further applications, try to establish why the original provider declined the business.
Our High-Risk Merchant Account Applications guide explains how complex applications can be prepared.
What should private aviation businesses compare between payment providers?
Processing price is only one part of the comparison.
Private aviation businesses should consider:
- provider appetite for aviation and travel;
- maximum transaction values;
- future-delivery tolerance;
- MOTO support;
- payment-link functionality;
- online gateway capability;
- commercial-card pricing;
- international card support;
- multi-currency capability;
- cross-border acquiring;
- settlement currencies;
- settlement periods;
- reserve requirements;
- fraud controls;
- refund processes;
- chargeback support;
- CRM or booking-system integration;
- reporting;
- contract terms; and
- the complete cost of processing.
The provider needs to support the actual aviation payment model, not simply accept a broad travel MCC.
Find Suitable Payment Providers
Choosing payment processing for a private aviation business
Start by mapping the complete booking and payment journey.
For example:
customer requests flight → quote agreed → booking confirmed → deposit or full payment collected → operator arranged → flight takes place → final payment and reconciliation completed
Then document:
- who contracts with the customer;
- who operates the aircraft;
- how far in advance payment is taken;
- average and maximum transaction values;
- how customers pay;
- customer countries;
- currencies required;
- how operators or suppliers are paid;
- how cancellations are handled;
- how refunds are processed;
- the maximum outstanding future-booking exposure; and
- which systems need to integrate with the payment provider.
This creates a much clearer payment specification and makes it easier to identify providers whose acquiring appetite and technology fit the business.
Merchant Advice Service helps businesses understand their payment requirements before introducing them to payment providers that may be suitable.
Sources & References
About Merchant Advice Service
Merchant Advice Service (MAS) provides independent information, comparison and provider-matching support for UK businesses looking for payment services.
We help businesses understand their payment requirements before introducing them to providers that may be suitable. MAS does not provide payment processing services directly.
Disclosure: Merchant Advice Service may receive commission from payment providers following a successful introduction. This does not increase the price paid by the merchant and does not determine which providers are included in our editorial guidance.
