ARC amends debit memo policy to assist travel agencies
Airlines Reporting Corporation (ARC) is making changes to its policy on debit memos and chargebacks as the industry is hit with an unprecedented level of cancellations.
ARC says it will not penalize travel agent partners for debit memos stemming from coronavirus- affected flight cancellations or disputes over customer refunds.
Agencies will not be liable due to the ‘unprecedented nature of the covid-19 pandemic and its impact on the travel agency community.’
"ARC will not hold travel agencies liable for the payment of such memos, nor will ARC take any action against agencies that could affect their accreditation status for failure to do so," ARC said.
It has postponed the ARC Pay chargeback fee for the foreseeable future.
Now agents can input a new ‘COVID19’ code in ARC Memo Manager.
It gives hard-pressed agencies more flexibility and time to resolve the active debit memos, says ASTA.
"By not holding travel agencies liable for the payment of such memos, nor taking action against agencies that could affect their accreditation status for failure to do so, is a strong testament to the value and trust placed in the travel agency community," ASTA said in a statement.
ARC said it has also extended its Ticket Resolution Services fee grace period from 15 to 45 days for new debit memos.
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