Reducing Cross-Border Declines in the Travel Checkout Flow

For travel merchants, every confirmed booking represents the end of a long journey, not for the traveller but for the business. You’ve invested in marketing, optimised your site and guided the customer through searching, comparing and choosing. 

But what happens if, at the final step, their payment fails?

In travel, a cross-border payment decline is more than a missed transaction. It’s a lost booking, a frustrated customer and potentially a competitor’s gain. So, the question is: how many sales are you losing without even realising it and what can you do about it?

If you are an online travel agency (OTA), airline or hotel chain, reducing cross-border declines in the travel checkout flow is essential to maximising conversion rates and building customer loyalty.

Why Cross-Border Payment Declines Are So Common in Travel

Travel is inherently global. Customers often book flights, accommodation and activities in foreign markets using cards issued in their home country. This introduces multiple risk triggers for issuing banks and payment processors.

Common causes of cross-border payment declines include:

• Issuer suspicion: A booking in a different country, especially for high-value travel purchases, can trigger fraud alerts.
• FX conversion and currency mismatches: Transactions in a currency different from the cardholder’s default can cause failures or prompt cardholder re-authentication.
• Local acceptance gaps: Not all acquirers process all international card types or alternative payment methods (APMs).
• Regulatory and authentication requirements: PSD2 and other regional rules can add friction in the checkout flow if not implemented properly.

In travel, these issues are amplified by high-ticket amounts, the urgency of booking and the prevalence of first-time transactions, all of which make issuers more cautious.

The Real Cost of Payment Declines in Travel

The real cost of payment declines in the travel checkout flow goes far beyond a single failed transaction. When a payment fails, the immediate loss is booking revenue, as customers, especially those searching for time-sensitive fares, are likely to abandon the purchase altogether. 

Over time, repeated declines can erode trust, damaging the brand and making travellers view the platform as unreliable. The ripple effect extends to operations, as customer service teams face an increased volume of payment-related complaints, diverting resources from other priorities. On top of this, every abandoned transaction represents wasted marketing spend, turning the cost of acquiring that customer into a complete loss. Ultimately, payment declines not only cost travel merchants the current sale but also jeopardise long-term customer loyalty and repeat bookings.

Strategies to Reduce Cross-Border Declines in the Travel Checkout Flow

1. Localise Payment Processing

Where possible, process transactions through a domestic acquirer in the customer’s region. Local acquiring reduces cross-border markers that issuers use to flag potential fraud, increasing the likelihood of approval.

For example, a European customer booking a hotel in Asia may still see higher approval rates if their payment is processed via an EU-based acquirer rather than an overseas one.

2. Support Preferred Local Payment Methods

Relying solely on international card schemes limits acceptance. Many travellers prefer or trust local APMs such as BLIK in Poland, iDEAL in the Netherlands or GCash in the Philippines.

Adding these methods not only improves approval rates but also builds trust with customers booking in unfamiliar markets. A travel merchant offering these options is more likely to retain international customers who encounter card friction.

3. Implement Smart Routing with Payment Orchestration

Smart routing automatically directs each transaction to the optimal acquirer or payment provider based on location, card type and past performance data.

For example, if historical analytics reveal that Acquirer A consistently achieves higher approval rates for cards from a certain region when handling Asia-Pacific transactions, the payment orchestration layer will automatically route those payments through that acquirer. This targeted routing can significantly improve approval rates for cross-border travel bookings.

4. Manage FX and Currency Options Carefully

Allowing customers to pay in their local currency can reduce declines by removing FX conversion surprises at the issuer level. Multi-currency pricing also improves transparency and trust at checkout.

If you do offer dynamic currency conversion, ensure it is clearly presented and doesn’t add unexpected fees, which can trigger cardholder disputes or cancellations.

5. Optimise Authentication Flows

For regions covered by PSD2 and similar frameworks, use 3D Secure 2 (3DS2) to enable frictionless authentication where possible. Poorly implemented authentication, especially redirect-heavy flows, can frustrate customers and increase abandonment.

Travel merchants should also adopt exemptions strategically, such as low-risk transaction scoring, to avoid unnecessary authentication steps that slow down checkout.

6. Monitor Decline Patterns and Act on Data

Declines are not random. Monitoring data by region, issuer, payment method and transaction amount can reveal patterns.

A payment orchestration platform with built-in analytics makes it easier to spot that, for example, a specific acquirer underperforms with a certain card type or that a decline spike occurs for certain currencies. Acting on these insights allows merchants to adjust routing, add local APMs or adapt authentication flows quickly.

The Role of Payment Orchestration in Cross-Border Travel Payments

Payment orchestration brings all of the above strategies together under one platform. For travel merchants, the benefits include:

• Single API access to multiple PSPs, acquirers, and APMs.
• Smart routing to boost approval rates.
• Faster onboarding of new payment methods without heavy engineering work.
• Multi-currency support for transparent, customer-friendly pricing.
• Centralised reporting for better operational oversight.

Travel companies can address cross-border challenges with greater agility and data-driven decisions by replacing a fragmented payment system with a unified orchestration approach.

Reducing Payment Friction for International Travellers

A smooth payment experience is critical in the travel industry. Customers expect fast, secure and trusted checkout flows, especially when booking from abroad.

Reducing cross-border declines is not just about technology but about customer psychology. A declined transaction during booking often leads customers to choose a competitor with a smoother checkout.

By combining local acquiring, preferred APMs, multi-currency pricing, and payment orchestration, travel merchants can dramatically improve cross-border approval rates and reduce abandonment.

Turning Declines into Approvals

Cross-border payment declines in travel are not inevitable. With the right combination of local market expertise, payment orchestration and data-driven optimisation, merchants can significantly reduce failures in the checkout flow.

The travel booking process should be seamless from search to confirmation. To protect revenue, enhance customer satisfaction and secure a competitive edge in the expanding global market, travel businesses should prioritise payment acceptance strategically.

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Frequently Asked Questions

Why are payment declines more common in cross-border travel bookings?

‍Cross-border travel transactions often face higher decline rates due to issuer risk assessments, currency conversion issues and fraud prevention triggers when a card is used outside its home market.

How can smart routing improve approval rates?

‍By analysing historical performance and routing transactions to the acquirer most likely to approve them, smart routing can significantly reduce declines without adding friction to the checkout flow.

Is local acquiring important for international travel sales?

‍Yes. Partnering with local acquirers in the traveller’s home country or region increases the likelihood of approvals, as issuers are more familiar with local payment flows and regulations.

Does adding more payment methods help reduce declines?

‍Offering a mix of local and global payment methods gives customers alternatives if their preferred method is declined, helping to save the sale.