Payment Gateway for Travel Agency: How to Choose the Best Solution for Your Travel Business

The UK travel agency market is worth nearly £30 billion. That’s a lot of money changing hands, and your payment system needs to help you earn your share, not slow you down.

For travel businesses, a great payment system means fast, secure payments, more ways for customers to pay, and a setup that builds trust. It protects your business from chargebacks, maintains cash flow, and helps you handle the ups and downs of a seasonal industry where plans can change in an instant.

In this guide, we’ll show you how to choose the best payment gateway for your travel website, what features you need, and how to stay ahead of the competition, with Noda as one of the most advantageous solutions to consider.

What is a Payment Gateway (and How Does It Work)

When a customer makes a booking on your website, there’s a moment when they need to pay. A payment gateway is the tool that connects your website to the wider banking network. It authorises the payment, securely transfers the money, and confirms the booking. It works behind the scenes to make sure your customers’ payments reach your account safely.

Here’s how it typically works:

1. Your customer makes a booking and enters their payment details.
2. The payment gateway encrypts and securely sends this information to the relevant bank or card network.
3. The bank approves or declines the transaction (usually within seconds).
4. The money is transferred to your account, and your customer gets a booking confirmation.

For a travel agency, this system needs to handle:

• Multiple currencies and payment methods (cards, bank transfers, open banking)
• Secure travel transactions
• Fast payment approvals
• Protection from fraud and chargeback

The Challenges of Payment Processing in the Travel Industry

Bad news first: when you’re choosing a payment gateway for your travel agency, you’ll quickly notice that travel businesses often pay more in fees than most other industries.

Why? Because travel is unpredictable.

Customers book trips months in advance, then change plans at the last minute. Weather, politics, family emergencies, anything can happen. Cancellations, refunds, and chargebacks are part of the game.

Payment processors know this, which is why travel businesses are often labelled as "medium-risk", translating directly into higher processing fees, especially for certain cards or payment methods.

And that’s just the start.

If you run a local agency that helps customers travel abroad, you’ll probably accept payments in GBP. But if you also want to take international bookings, you’ll need to handle multiple currencies, international cards, and higher fees.

Let’s not forget the seasonality of the travel industry. Peak season can bring a rush of bookings, followed by quieter months. Managing cash flow is key here, you need a payment system that helps you get paid quickly, so you can book flights, hotels, and suppliers without delays.

Best Payment Gateways for Travel Agencies: Top Providers

Let’s take a look at some payment gateway options that could work for your travel agency:

Noda

Noda uses Open Banking technology to let your customers pay you directly from their bank accounts, without relying on card networks. This can mean lower transaction fees and faster access to funds, which is helpful for travel businesses managing deposits, last-minute bookings, or changes in travel plans.

Noda also supports payments from over 2,000 banks across the UK and EU, which is ideal for local travel agencies that serve international customers. You can also send customers a payment link for upfront deposits or final balances for an easy way to confirm bookings and start arranging travel details like flights and accommodation.

More on payment links here: Email Payment Link: Guide for Merchants

Since Noda works directly with banks, it can also help reduce the risk of chargebacks, which is a common concern in the travel industry. Plus, by using Open Banking, Noda provides a secure, compliant way to accept payments without the need for a merchant account or complex technical setup.

Stripe

Stripe is a popular choice, especially for larger businesses or online platforms that have a technical team. It’s known for flexibility and works with over 135 currencies. However, Stripe isn’t the cheapest option, particularly for travel businesses that are seen as higher risk. UK card payments come with a fee of 1.5% plus 20p per transaction, while international card payments can cost up to 3.25% plus 20p and 2% when currency conversion is required, which can add up fast for agencies handling global bookings.

Adyen

Adyen is designed for big travel platforms that need advanced payment systems to manage both pay-ins from customers and payouts to suppliers. It’s used by some of the world’s largest travel companies. While Adyen is powerful, its pricing is less straightforward. The base fee is around $0.11 per transaction, but for travel businesses, fees can go as high as 3%, mainly because the travel sector is seen as a bit riskier. On top of that, Adyen has a minimum monthly invoice requirement—if your processing fees don’t hit their threshold, you’ll still be charged the minimum amount. This makes Adyen less suited to smaller or lower-volume businesses that want to keep costs predictable and low.

PayPal

PayPal is widely recognised and trusted by customers. It’s easy to set up and works globally, which makes it an appealing option for smaller agencies. But PayPal’s fees aren’t the most competitive—expect fees up to 2.9% plus a fixed fee for domestic transactions, and up to 4.89% plus a fixed fee for international payments. If you’re taking a lot of international bookings, those charges can really eat into your profits.

How to Choose a Payment Gateway for Your Travel Agency 

Some payment gateways are packed with advanced features, while others focus on the basics, just helping you accept payments and move on. It’s worth thinking about how much you actually need. If you’re running a smaller agency, you probably don’t need everything that a global company would look for.

It’s also smart to look at what payment methods your customers prefer. Do most of them pay by card? Or would they rather just transfer directly from their bank account? The more traveller payment options you can offer, the better your chances of making the sale. And if you can add new methods later, that’s even better because the payments world changes fast.

Security and compliance

When you’re handling customer payments, you’re also handling their personal data, and that’s a big responsibility. Your payment gateway should meet PCI DSS standards, which are the global security standard for handling card details. You’ll also want to know what kind of fraud protection they offer, especially since travel is seen as a higher-risk industry. With cancellations, refunds, and chargebacks being more common in travel than in other sectors, having strong security tools it’s a must.

Ease of use

The last thing you want is a system that takes a week of coding just to get started. Your payment gateway should be easy to set up and even easier to use, both for you and your customers. If it’s clunky or confusing, you risk losing bookings at the checkout page.

Can it be integrated?

Your booking process should feel seamless. A payment gateway that works smoothly with your existing website, booking system, or even your CRM means less stress for you and a better experience for your customers. If you’re running a smaller agency that relies on email or phone bookings, it’s worth looking for a gateway that lets you send instant payment links. This is great for collecting deposits, especially if you’re a local agency taking bookings for holidays abroad, where you often need to secure payments before you start arranging hotels, flights, and tours.

Will the customer like it?

Customer experience is everything in travel. If your payment process feels slow, confusing, or a bit sketchy, people will think twice before completing their booking. The payment gateway you choose should make life easy for your customers, without long forms, confusing redirects, or worrying if their payment went through.

What fees are involved?

Fees can add up, especially in travel. Some gateways charge more for international card payments, and others see travel as a higher-risk industry, so they’ll add extra fees. It’s a good idea to run some numbers based on your average booking value, customer locations, and the currencies you accept—whether that’s GBP, EUR, or others, such as RON. If you’re mainly taking deposits and want to keep costs low, a solution like Noda, which offers low fees for direct bank payments across the UK and EU, could help you save on payment processing costs.

Are all payment methods accepted?

If you’re working with customers from all over the world, your gateway needs to keep up. Some customers will want to pay by card, others by bank transfer, and some may even prefer digital wallets. It’s important to check that your gateway supports the payment methods your customers expect, and that it can handle multiple currencies without adding huge fees or delays.

Is the system future-proof?

Payments change quickly. Open Banking, instant bank transfers, and new payment methods are becoming the norm. It’s worth asking whether your chosen gateway is ready for these changes, or if it might hold you back in a year or two.

How much customer support is available?

Things go wrong sometimes—a payment gateway with responsive, helpful customer support can save you hours of stress when something unexpected happens, like a payment not going through or a chargeback popping up.

Cut costs and get paid faster with Noda

By connecting directly to your customers’ bank accounts, Open Banking lets you accept payments without going through card networks. That means lower fees, faster payments, and less time spent waiting for funds to clear.

Noda helps travel agencies use Open Banking to take payments securely, with fees starting from just 0.01%. You can send a payment link to customers, and they can pay instantly—perfect for deposits or final payments. This is especially useful for agencies that need to collect payments up front before booking hotels, flights, or tours. Noda also offers integration via API and ready-made plugins, so you can connect it with your existing systems and start taking payments quickly. Plus, you also get a dedicated account manager who understands how travel businesses work and can help you get set up and make the most of the system.

Want to see how it works?