How to eliminate cross-border fees and FX fees in travel payments

It’s no secret that travel companies operate in a fiercely competitive environment with thin profit margins. To cut into those margins even further, making international supplier payments adds additional costs due to fees like cross-border and foreign exchange (FX) charges.

However, there is a solution that allows travel companies of all sizes to eliminate cross-border and FX fees on international payments made to suppliers.

What Are Cross-Border Fees?

A cross-border fee is a card processing fee incurred when a merchant in one country (e.g., Italy) accepts payment from someone whose card originates in another country (e.g., the United States).

What Are Foreign Exchange (FX) Fees?

An FX fee is a surcharge split between the card network and the card issuer when:

• A transaction passes through a foreign bank, or
• A transaction is made in a foreign currency

How Can I Avoid Cross-Border and FX Fees?

ConnexPay’s Global Travel Virtual Credit Card (VCC) program is designed to benefit both travel companies and their international suppliers.

When you make virtual card payments to your travel suppliers using Global Travel VCC, you’ll gain several benefits:

• ❌ No cross-border or FX fees
• 💳 Improved card rebates
• 💲 Lower cost of supplier acceptance
• 🚫 No cost or minimum volume requirement
• 🌍 Settlement in local currency, anywhere Mastercard or Visa is accepted

Travel companies issuing virtual cards with Global Travel VCC earn a net rebate that is approximately 1.00% higher than they would otherwise earn.

Suppliers benefit too—the net cost of accepting payments through Global Travel VCC is 0.75% lower than standard acceptance costs.

What Are the Accepted Merchant Category Codes (MCCs)?

To qualify for the Global Travel VCC program, travel suppliers must be configured under one of the following MCCs:

Airlines:
3000–3350, 4511

Automobile/Vehicle Rental:
3351–3500, 7512, 7513, 7519

Cruise/Steamship:
4411

Global Wholesale Travel / Other:
4131, 4582, 4722, 5962, 6513, 7012, 7032, 7033, 7298, 7991, 7997, 7999

Lodging:
3501–3999, 7011

Railways:
4112

How Can I Start Using Global Travel VCC and Eliminate Fees?

ConnexPay’s all-in-one payments platform was purpose-built for the travel industry. It provides immediate access to incoming funds, which can then be used for outgoing supplier payments.

With:

• One contract
• One platform
• One reconciliation
• Rapid implementation
• No setup fees

…it takes just a few minutes to start accessing all the benefits ConnexPay provides—including Global Travel VCC.