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San Francisco’s dominant airline informed some travel agencie that as of July 20 it will no longere let them process credit and debit card purchases for airlinw ticketsusing United’s merchant-processing Instead, such agencies would have to require travelers to pay with process card payments with the agency’ds own merchant processing service and forwards the cash to United or book the tickets on United’x web site using the traveler’s credit or debit card issuedc by , (NYSE: V) , (NYSE: MA) AXP) and others.
An agen t using United’s web site, bypassing such travel systems as Apolloand Sabre, would not allow companies to capturs the discounts they have negotiate with United nor would it allow their travel agent to survey several carriers on a routed to find the lowest price. “Several Bay Area companiesa have deals with Unitecd Airlinesfor discounts,” said Marc president of Casto Travel, whichh isn’t among the agencies that Unites has cut off from its merchant-processing Casto says he’s reached out to some of the firm’a corporate clients to express concernh over United’s new card acceptance policy, but declined to discuss what was said in thosde conversations.
United Airlines (NASDAQ: UAUA) did not respon d to requests for comment. United is hoping to shifft the cost of accepting credit and debit card onto selectedtravel agencies. Those agencies say the airline’s move shiftsd to them the risk for payinv out refunds if the carriergoes bankrupt. Whilre it’s also likely to reduce the amount of moneyh that United has to keep in the bank to guardagainstf charge-backs, it would increase thoss requirements for the travel agents. That’sd a nonstarter for most agencies — and their which would have tohonor charge-backj requests that could total billions of dollars in the event of an airlinew bankruptcy.
“I don’t thinlk there’s any travel agency, including American Expressz Travel, that could shoulder that liability,” Casto
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