Companies including travel agencies, airlines, car rental agencies, hotels, ticket brokers, insurance brokers and marketplaces have similar business models in that they receive payment up front but provide their goods or services subsequently. In addition, they must both accept card payments from consumers and/or businesses and make card payments to suppliers and/or employees.

These “future delivery” companies are viewed as risky by traditional banks in the merchant acquiring business because they can use card payments they receive up front to fund ...