AMENDED Iata resolutions
will see agency credit
cards supported by Iata
as a payment method for
tickets. The initiative is also
expected to increase payment
transparency, Iata says.
However, the new terms come
with an onerous condition,
says Asata.
The Resolution text
incorporates provisions related
to Transparency in Payments
(TIP). TIP reveals the different
features and costs associated
with each form of payment
and agent remittance of airline
funds, says Iata. Presently
airlines only see agent BSP
settlement costs after the
fact. The TIP initiative would
reveal the different features
and costs associated with
each form of payment and
the agent remittance of airline
funds.
In the past, remittances of
customer ticket purchases
via an agent card were not
supported by Iata Resolution
890. However, due to pressure
from agents to incorporate
this method of payment for
better cash flow management,
the TIP initiative will no longer
bar any particular form of
remittance.
The catch is that agents can
only use their own cards if an
airline specifically gives its
consent.
TNW understands that each
travel agency that wishes
to make use of an agent
card may have to individually
apply to each airline for this
privilege. “It will be up to
each airline to define their
payment acceptance policies
and whether these apply at a
market level or individual travel
agent level. Prior to using their
own card, travel agents need
to consult with the carrier in
question,” says Perry Flint,
Iata’s head of corporate
communications for North
America.
Asata ceo, Otto de Vries,
says he was disappointed
that there was a condition
applied to the acceptance of
travel agent cards as a form
of payment. He explains that
agent credit cards offer a safe
form of transaction that enable
agents to manage their credit
lines better, particularly in light
of the fact that agents in many
markets around the world are
now under pressure to remit
their BSP more frequently.
The benefits of this form
of payment are especially
pertinent to corporate agents
who offer their clients a
30-day settlement account.
Additionally, as Iata already
accepts credit cards as a
method of payment for both
passenger and travel agency
lodge cards, Otto believes the
decision to require consent
from the airline for travel agent
cards is discriminatory in its
nature.
“The negotiation of the
exemption of an agent credit
card has resulted in a model
or a structure that is unlikely
to see many airlines accepting
the card. Asata will, however,
continue to explore both
legal as well as merchant
contractual requirements to
secure a clearer and more
open acceptance of the
agent card going forward,”
Otto says.
Iata allows agency cards – but there’s a catch
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