Managing international payments is a frequent task for many travel operators, especially those who operate across numerous global markets. But as cross-border transactions rise, so does the risk of being exposed to payment fraud and currency risk.
Research by Equals Money shows that managing international payments is among the biggest operational challenges faced by 35 per cent of UK travel businesses. While many of these challenges are due to issues such as dealing with multiple currencies and staying on top of local payment regulations, the increased threat of fraudulent bookings and chargebacks can add to the potential stress of cross-border payments.
By harnessing AI, travel companies can safeguard payments and help stop fraud in its tracks, while making the process quicker and simpler.
Tackling fraud in real time
Authorised Push Payment (APP) is one of the fastest growing fraud types in the UK, with both individuals and businesses falling victim. For anyone unfamiliar with the term, APP scams occur when a fraudster poses as a genuine payee to persuade you to transfer money, such as pretending to be a supplier and claiming their bank details have changed.
AI-powered fraud detection can stop suspicious transactions in real time, preventing threats before they happen.
Digital tools are also able to monitor payment patterns, flagging any unusual activity across different regions, plus generate alerts so that travel companies can act quickly. Each of these steps can help reduce the occurrence of chargebacks and avoid financial losses.
Supporting faster payments
As well as providing increased security protection, there are the efficiency benefits that come with increased automation.
Further research by Equals Money reveals that UK employees spend an average of 65 minutes a day on automatable, routine tasks – adding up to a staggering 38 days a year. Financial processes were shown to be a key area for automation, including receiving and issuing payments.
Managing different currencies and forms of payment have typically involved complex processes, but harnessing AI can allow a travel firm’s finance team to make things far easier and quicker.
With prompt payments key to building good supplier relationships, the benefits of having a swift, automated payment system in place brings benefits that go far beyond time saving.
Focusing on growth
Even amidst the current challenging global climate, UK travel businesses are confident about their potential for growth, both at home and abroad. In fact, the research by Equals Money found that 68 per cent are optimistic about future travel growth opportunities – with 35 per cent viewing it as critical for their survival.
By using AI to automate time-consuming payment processes, while making the most of digital tools to help prevent fraud, travel firms have more time to focus on the priorities they need to achieve their ambitions.
Recognising limitations
Despite the wide-ranging capabilities of AI, it’s also important to remember that human interpretation remains vital. Plus, when setting up an automated process, it’s crucial to put procedures and checks in place to ensure accuracy and consistency.
AI can help make a good business better and the biggest impact it can have is when it’s leveraged on top of a solid foundation. Working with the right partners can help travel businesses get the most value from automating more of their financial processes.
Many businesses are nervous about being among the first movers when it comes to adopting AI, but when approached in the right way they can gain a competitive edge that enhances decision-making and efficiency.
As well as its capacity to free up time by optimising appropriate tasks, AI can work as a powerful digital bodyguard. Fraudulent bookings and chargebacks are rising fast in the travel sector, but AI-driven fraud tools can prevent threats before they happen, giving travel operators peace of mind while keeping payments secure.
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