Accepting Diners Club cards can attract high-spending business professionals and frequent travelers. While its global acceptance can be more limited compared to the universal reach of Visa and Mastercard, its exclusive nature often results in higher average transaction values for the business. Companies should also be aware of the transaction fees associated with accepting these cards, which can differ from those of other credit card networks.

Below, we’ll discuss what businesses should know about accepting Diners Club as a payment method, including where and how it’s used and the associated costs and fees.

What’s in this article?

• What is the history of Diners Club?
  
• Accepting Diners Club as a payment method
  
• Where is Diners Club used?
  
• Diners Club market trends and growth drivers
  
• Who uses Diners Club?
  
• How does Diners Club work?
  
• Benefits of accepting Diners Club
  
• Diners Club’s costs and fees
  
• Diners Club’s security measures
  
• Alternatives to Diners Club
  
• How to pay your Diners Club bill
  
• How Stripe Payments can help
  

What is the history of Diners Club?

Diners Club International is a charge card business originally founded in 1950 as Diners Club. It was the first independent payment card business in the world and is known for creating the concept of a stand-alone credit card business.

Unlike traditional credit cards, Diners Club often operates as a charge card. It requires cardholders to pay off the full balance each month instead of carrying a balance with interest. While cardholders are granted a line of credit to use at various businesses, the account architecture is designed for high-liquidity users who prioritize monthly settlement over revolving debt.

In 2008, Discover Financial Services purchased Diners Club International from Citibank for $165 million, merging the Discover and Diners Club networks to create a global payment processing system. While Diners Club was historically associated with travel and dining, it has expanded its services over time to accommodate a broader range of expenses.

Accepting Diners Club as a payment method

Here’s how businesses can start accepting Diners Club as a payment method.

Application process

There are two main options for connecting with Diners Club: via its sales team or a payment processor. Here’s how the process works:

• Contact the sales team: Contact Diners Club’s sales team directly to discuss your business and explore custom solutions.

• Integrate with a payment processor: Partner with a payment processor that offers Diners Club integration. This partner can help simplify the application process and provide ongoing support.

• Prepare your documentation: Be prepared to submit your business license and registration, financial statements, bank references, and tax returns.

• Review the merchant agreement: Carefully review the terms and conditions outlined in the merchant agreement. These include merchant fees, settlement cycles, and chargeback procedures.

Eligibility criteria for accepting Diners Club

Diners Club prioritizes specific industries that align with the cardholder base and its spending habits. These include businesses in target industries, such as the following:

• Travel: Airlines, hotels, car rentals, travel agencies, and tour operators benefit from attracting Diners Club cardholders who frequently travel and look for high-end experiences.

• Hospitality: Restaurants, bars, night clubs, and entertainment venues can tap into a high-spending clientele.

• Entertainment: Event organizers, movie theaters, and theme parks can draw in customers who use Diners Club cards for entertainment purchases.

Additionally, there are approval requirements for accepting Diners Club:

• Financial health: Diners Club works with financially stable businesses that have clean credit histories. It conducts credit checks to assess the risk of accepting a new business. Factors such as annual revenue, profitability, and debt levels can influence the approval decision.

• Restrictions on business type: Certain business types might be ineligible or require additional scrutiny due to higher risk factors. Financial institutions (e.g., banks, credit unions) might be subject to stricter regulations and compliance requirements. Higher-risk industries (e.g., gambling, adult entertainment) might face additional scrutiny due to the potential for fraud or chargebacks.

Technical requirements

• Payment gateway compatibility: Ensure your existing payment gateway or point-of-sale system can integrate with Diners Club’s network for easy transaction processing.

• PCI DSS compliance: Adhere to the PCI DSS to safeguard sensitive cardholder data and minimize security risks.

• Fraud prevention measures: Implement extensive fraud prevention measures such as tokenization, multifactor authentication, and real-time transaction monitoring to protect your business and customers.

How to accept Diners Club payments with Stripe

If your business uses Stripe to accept payments, you don’t need to apply with Diners Club directly to start accepting Diners Club cards. Stripe handles the integration and authorization process on behalf of businesses.

Diners Club availability through Stripe depends on the business’s Stripe account country. Diners Club isn’t supported in all countries where Stripe operates. Stripe might have additional eligibility requirements for accepting Diners Club based on the company’s industry and business type. Additionally, some Stripe plans might not offer Diners Club as a supported payment method. Check your specific plan details or contact Stripe support for more information.

Here’s the general process for accepting Diners Club with Stripe:

• Business checks Stripe’s documentation: The company should review Stripe’s documentation to confirm Diners Club is available in its specific account country and for its type of business.

• Business enables Diners Club in Stripe: If eligible, the company can activate Diners Club as a supported payment method in its Stripe settings.

• Stripe handles authorization: Once it’s activated, Stripe handles the authorization process for Diners Club transactions. Businesses don’t need to submit a separate application with Diners Club.

Where is Diners Club used?

Diners Club is a nimble, adaptive player in the global credit card market, with offerings that align with regional trends and customer behavior. Diners Club’s acceptance has expanded to more than 185 countries and territories.

Here’s an overview of the different markets where Diners Club is accepted.

North America

In the United States, a significant portion of Diners Club transactions are made on corporate cards, thereby tapping into the robust business travel industry. Diners Club faces intense competition in North America, especially from Visa and Mastercard. To remain relevant, it partners with high-end travel brands and offers exclusive airport lounge access, with the goal of providing value-added services that distinguish it from its larger competitors.

Europe

In certain cities of Europe, only about 5.0% of customers have Diners Club cards. However, the network has a meaningful market share in Germany, France, and Italy with a focus on small and medium-sized businesses. This highlights how the company targets a customer segment that might be underserved by larger credit card networks. But in Eastern Europe, the presence of local card networks and developing regulations present significant challenges for Diners Club.

Asia

In China, where travel and luxury spending is booming, Diners Club has expanded by partnering with the payment provider Allinpay. This collaboration helps Diners Club tap into China’s vast, growing card market. In Japan, where customers show a strong preference for contactless payments, Diners Club focuses on mobile solutions.

Latin America

Diners Club attempts to adapt to the region’s economic realities. It’s been present in Brazil for more than 50 years, and a 2015 partnership with local payment brand Elo has helped broaden its reach. Ongoing economic challenges in Argentina have caused card usage to fluctuate. Diners Club offers flexible payment options and local partnerships to maintain its market presence in the country.

Other markets

In the United Arab Emirates, Diners Club caters to high-spending customers with its focus on premium travel and hospitality. In Africa, mobile payment partnerships are important for growing Diners Club’s presence.

Diners Club market trends and growth drivers

These are some major trends to watch when it comes to Diners Club:

• Rise of business travel: The global business travel market is projected to increase from about $690 billion in 2021 to over $2 trillion by 2031, and Diners Club is well positioned to benefit from this boom.

• Shift to contactless payments: The global contactless payment industry is expected to generate more than $12 trillion by 2032. Diners Club has successfully adapted to this global trend in contactless payments.

• Importance of local partnerships: By acquiring new businesses through local partnerships in countries such as China and Brazil, Diners Club demonstrates how a local approach can expand its global footprint.

• Prevalence of digital commerce: The card’s acceptance at online retailers and ecommerce platforms is also growing, attracting customers who prefer online shopping.

Who uses Diners Club?

While it’s not the dominant player in global payments, Diners Club does have a fairly diverse customer base. Diners Club cards are accepted at more than 110 million business locations and more than 1 million global ATMs. Here are the types of businesses and customer segments that use Diners Club:

• Travel and hospitality: Diners Club transactions are popular in the travel and hospitality industry. Airlines, hotels, car rentals, and airport lounges often partner with Diners Club to offer exclusive benefits such as points and discounts to attract frequent business travelers and leisure guests.

• Frequent business travelers: Many Diners Club cardholders travel for business multiple times a year. These individuals enjoy the card’s global acceptance, airport lounge access, and travel insurance options.

• Medium-sized and large businesses: For the most part, Diners Club issues its cards to medium-sized and large companies. These businesses find Diners Club’s expense management tools and travel perks valuable, along with its ability to simplify corporate spending and enhance employees’ travel experiences.

• Affluent customers: Diners Club cardholders often belong to the upper-income brackets. The card’s premium rewards programs, exclusive partnerships, and focus on luxury brands cater to this group’s spending habits and preferences. For example, the Diners Club Black Credit Card caters to individuals with high net worth, offering exclusive benefits and rewards.

• Tech-savvy millennials: The card’s mobile payment options and digital wallets can also resonate with younger, tech-savvy generations.

Here are several use cases for Diners Club:

• Corporate expense management: Businesses with Diners Club corporate cards use them for travel and entertainment expenses. The easy-to-track transactions and expense reporting features simplify expense management for businesses.

• Cross-border transactions: Diners Club cards are accepted in more than 200 countries, making them a convenient option for international business travel and online purchases.

• Rewards and perks: Diners Club cardholders actively participate in its rewards programs, redeeming points for travel, merchandise, and gift cards.

• Airport lounge access: Diners Club cardholders have access to more than 1,300 airport lounges worldwide, a valuable benefit for frequent travelers who seek comfort and convenience.

How does Diners Club work?

Diners Club works in a similar way to other major credit cards, but the process isn’t identical. Here’s how it works and what it offers businesses and customers.

For customers

• Card issuance: Diners Club partners with financial institutions to issue cards to individuals and businesses. The application process is similar to that of other credit cards, with creditworthiness checks and approval based on individual profiles.

• Transaction process: When a customer uses their Diners Club card at a business, the transaction details are transmitted through the Diners Club network. The customer receives a real-time notification and the merchant account is credited within a specified time frame.

• Settlement and billing: Diners Club settles transactions with businesses daily or weekly, depending on the agreement. Customers receive monthly statements of their charges and any applicable fees.

• Rewards and benefits: Diners Club offers various rewards programs, which are often tied to travel and entertainment spending. Cardholders can redeem points for flights, hotel stays, merchandise, or gift cards. Some cards also offer exclusive benefits such as airport lounge access and travel insurance.

For businesses

• Merchant onboarding: Businesses can sign up to accept Diners Club cards directly or through a payment processor. This process involves setting up a merchant account and agreeing to the business’s terms and fees.

• Transaction processing: When a customer makes a Diners Club payment, the business receives the transaction details and funds within the designated time frame. Companies can access detailed reports and transaction history through a secure online portal.

• Payment processing fees: Diners Club charges a flat fee or a percentage of the transaction amount for processing payments. The specific fees can vary depending on the business’s industry and volume, as well as the negotiated agreement.

• Chargeback protection: Businesses that accept Diners Club receive chargeback protection in case of fraudulent transactions or customer disputes. This helps them mitigate potential losses.

• Business solutions: Diners Club offers several business solutions, such as corporate card programs with expense management tools, virtual card numbers for secure online transactions, and invoice payment solutions for B2B transactions.

What sets Diners Club apart from other card networks

• Global acceptance: Diners Club is accepted by a vast network of businesses worldwide, offering flexibility to customers and increased reach for sellers.

• Focus on travel and entertainment: Diners Club’s rewards and partnerships often cater to frequent travelers and high-spending individuals, enabling businesses that accept the card to reach specific customer segments.

• Corporate card solutions: Diners Club’s corporate card programs and expense management tools serve the needs of medium-sized and large businesses, offering convenience and control over employee spending.

• Partnerships and collaborations: Diners Club’s partnerships with airlines, hotels, and other brands offer additional benefits to both customers and businesses. This helps expand the network’s reach.

Challenges and considerations of accepting Diners Club

• Limited market share: Compared to Visa and Mastercard, Diners Club holds a smaller market share. That can limit its acceptance.

• Higher merchant fees: Diners Club’s merchant fees can be higher than those of other networks, which might deter some businesses from accepting the card.

• Regional variations: Acceptance and usage patterns might vary significantly across different regions and markets.

Benefits of accepting Diners Club

For businesses, accepting Diners Club offers many of the same advantages as accepting other credit cards: in-depth customer analytics, a convenient payment experience, and a high level of security. But Diners Club also provides some unique benefits, including the following:

• Access to high-value travel and entertainment customers: Diners Club has a strong presence in specific sectors such as travel, hospitality, and entertainment. By appealing to frequent travelers and high-spending individuals who seek exclusive experiences and premium offerings, the network allows businesses to reach these valuable customer segments more effectively.

• Global acceptance with local market expertise: Diners Club has a vast global network, with wider reach than some regional card networks. It also understands local nuances and partners with relevant brands and service providers to succeed in different markets. This allows businesses to tap into local market trends and preferences.

• Corporate card and expense management solutions: Diners Club has a strong focus on corporate card solutions and offers extensive expense management tools and reporting capabilities. This is especially beneficial for medium-sized and large businesses with complex expense tracking and travel needs.

• Strategic partnerships and collaboration: The partnerships with airlines, hotels, car rentals, and other brands offer businesses access to exclusive benefits and promotional opportunities for their customers. This can be a powerful tool for attracting new customers, driving customer loyalty, and standing out from competitors.

• Flexible billing and settlement options: Diners Club offers different billing and settlement options, including consolidated billing and flexible settlement cycles. This gives businesses greater control over cash flow, which might improve their working capital management.

Diners Club’s costs and fees

Below are some of the fees associated with accepting Diners Club as payment.

Merchant fees for businesses

• Transaction fees: Diners Club charges businesses a percentage of each transaction, which typically ranges from 1.5%–3.5%, depending on the industry, volume, and negotiated agreements. These fees can be slightly higher than those of major networks like Visa and Mastercard.

• Monthly or annual fees: Some merchant accounts might incur additional monthly or annual fees, which usually range from $25–$100 per month. These fees are often waived for high-volume businesses that process $100,000–$250,000 per month.

• Chargeback fees: In case of chargebacks due to fraud or customer disputes, Diners Club charges businesses a fee that starts at $25 per chargeback.

Corporate card fees for corporate card account holders

• Annual fees: Diners Club corporate cards carry annual fees that range from $95–$249 depending on the card tier and benefits. There’s also an $80 annual fee for each additional card.

• Transaction fees: Some corporate cards might incur additional transaction fees. Typically, these are a flat fee per transaction or a percentage of the total amount spent.

• Program management fees: Businesses with large corporate card programs might negotiate program management fees that cover the costs of administering and managing the program.

Cardholder usage fees

• Currency conversion fees: For cross-border transactions, Diners Club charges cardholders a foreign transaction fee of up to 3.0% of the transaction amount.

• Late payment fees: Late payments on invoices or card statements might incur late payment fees of up to $39 or 2.5% of the past-due amount.

• Additional services: Services such as emergency card replacement and transaction alerts might incur additional fees.

Diners Club’s security measures

Here’s how Diners Club secures transactions.

Security technology

• Tokenization: Diners Club employs tokenization, replacing sensitive card details such as credit card numbers with unique digital tokens during transactions. This means that even if transaction data is intercepted, the real card information isn’t exposed and cannot be used for fraudulent activities.

• Fraud detection and analytics: Using sophisticated algorithms, Diners Club’s systems monitor transactions in real time. They identify abnormal patterns that could indicate fraud. This proactive approach helps prevent fraudulent activities before they affect cardholders.

• Multifactor authentication: For sensitive transactions, Diners Club often requires additional verification steps beyond card details. This could include a one-time password sent to the cardholder’s phone or biometric authentication such as fingerprint or facial recognition.

• Data encryption: All communications between the cardholder’s device and Diners Club servers are protected with strong encryption protocols so personal and transaction data remain confidential and secure.

Secure infrastructure

• Payment Card Industry Data Security Standard (PCI DSS) compliance: Diners Club adheres to the PCI DSS, a rigorous global security standard for handling card transactions. Compliance is regularly verified through extensive audits.

• Regular system updates: To combat developing cyberthreats, Diners Club updates its systems and software with the latest security patches and enhancements on an ongoing basis.

Customer and business protection

• Chargeback protection: In cases of fraudulent or disputed transactions, customers and businesses can engage with Diners Club’s chargeback process to contest the transaction and potentially recover funds.

• Customizable transaction alerts: Cardholders can set up alerts for different types of account activity, which enables them to detect and respond to any unauthorized or suspicious transactions immediately.

• Continuous customer support: Diners Club provides around-the-clock customer support, with a dedicated team available to assist with security concerns and respond to potential fraudulent incidents.

Alternatives to Diners Club

While Diners Club offers unique benefits in specific markets, businesses have many alternatives to choose from. Here are some of the major competitors, along with their strengths and potential drawbacks compared to Diners Club:

• Visa and Mastercard: The undisputed giants of the credit card industry, Visa and Mastercard have nearly universal acceptance and massive cardholder bases. Their extensive reach attracts a wide customer base. However, these networks can come with stricter chargeback policies and a more general customer demographic compared to Diners Club in some markets.

• American Express: Known for its premium card offerings and affluent customer base, American Express caters to businesses that serve high-spending individuals. Its rewards programs and travel perks can attract loyal customers, but its limited acceptance compared to Visa and Mastercard might limit customer reach.

• Regional networks: In certain countries, localized networks like China UnionPay in China and Elo in Brazil offer competitive fee structures and strong regional brand recognition. These networks can be a valuable option if your customer base is concentrated in specific regions, but they offer a more general market than the hyper-specific (and generally higher-value) Diners Club cardholder demographic.

• Digital wallets: Apple Pay, Google Pay, and Samsung Pay are rapidly gaining traction, offering the convenience of contactless payment and security. Integrating these wallets can convert tech-savvy customers and simplify checkout experiences, but they don’t provide the same targeted demographic of Diners Club cardholders.

• Other payment methods: Beyond these payment methods, businesses can explore options such as buy now, pay later (BNPL) services and quick-response (QR) code payments. BNPL can attract customers who want to pay over time, while QR code payments are convenient for mobile-first customers. However, these methods might have their own fees and operational requirements, and their popularity can vary depending on the region and customer demographics.

Choosing the right alternative depends on several factors. For example, your target customer base and the market conditions that surround dominant payment networks and emerging trends in your target region are key factors. Additionally, high-volume and high-value businesses might be able to negotiate better terms with specific networks.

For many businesses, a mix-and-match approach can be the best fit. Combining Diners Club with other networks, digital wallets, or other payment methods can help your business meet diverse consumer preferences and maximize your reach.

How to pay your Diners Club bill

While businesses focus on how to accept Diners Club, cardholders need to know how to manage their accounts and ensure timely payments. Diners Club is a global network often issued through local banks so specific portals vary by region.

However, the following methods typically apply to Diners Club cardholders:

• Online and mobile payments: The most efficient way to pay your bill is through the Diners Club online portal or mobile app. Cardholders can log in to the online account management page specific to their country. Alternatively, members can use the Diners Club mobile app to pay bills on the go, view recent transactions, and manage card security features.

• Bank transfers: Cardholders can also link personal or business bank accounts to their Diners Club accounts for direct electronic payments, including automatic recurring payments.

• Phone payments: Members can make a payment via the automated phone system or by speaking with a customer service representative. The payment number is typically located on the back of the physical card or on monthly billing statements.

• Mail payments: Customers who pay by check or money order can mail their payments along with a detachable coupon from the billing statement.

Online and mobile app payments are typically credited to a customer’s account within 24–48 hours, while bank transfers can take 2–3 business days to settle. Mailed checks or money orders can take 5–10 days to reflect on an account.

Troubleshooting common payment issues

If you encounter issues while trying to pay your bill, consider the following actions:

• Login failures: If you are locked out of the online portal, use the Forgot Password link or contact the specific issuing bank. Ensure you’re using the portal for the correct region.

• Payment reversals: If a bank transfer fails due to insufficient funds, the issuer might charge a returned-payment fee. Double-check your bank routing number and account number during setup to prevent entry errors.

• Delayed posting: If your payment hasn't appeared after three business days, verify that the funds left your bank account and contact Diners Club customer service with the confirmation number or cleared check image.

How Stripe Payments can help

Stripe Payments provides a unified, global payment solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

Stripe Payments can help you:

• Optimize your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods, and Link, a wallet built by Stripe.

• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.

• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalize interactions, reward loyalty, and grow revenue.

• Improve payment performance: Increase revenue with a range of customizable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorization rates.

• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.

Learn more about how Stripe Payments can power your online and in-person payments, or get started today.