Effective October 2015 Visa will accept airline-supplied flight manifests as a remedy for fraud payment card chargebacks. This remedy represents an opportunity for the airline industry to recoup millions of dollars lost each year in “friendly fraud,” which occurs when a cardholder claims fraud for a transaction they were involved in.
Visa made the announcement at a recent meeting of the Airlines Reporting Corporation (ARC)-sponsored Credit Card Working Group (CCWG).
Airline-supplied flight manifests will be accepted as a remedy for fraud when the passenger name matches the cardholder name. With the exception of Verified by Visa authentication, this is the first time a fraud chargeback remedy will be available for airline e-ticket purchases in a card-not- present environment.
Visa has accepted a flight manifest as “compelling evidence” since April 2013, but it wasn’t considered a remedy that would result in a fraud chargeback reversal. When compelling evidence came into effect, Visa worked with the industry, including the Chargeback Subgroup of the ARC Debit Memo Working Group, to evaluate potential remedies.
ARC’s CCWG is comprised of more than 60 representatives from 24 organizations involved with air ticket purchases using credit cards processed by ARC. Topics routinely covered at meetings include virtual card processing, 3D Secure, fraud and chargeback reduction opportunities, and tokenization.
In 2014, ARC settled $89.6 billion worth of carrier ticket transactions for more than 9,400 travel agencies with 13,000 points of sale.
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