AFTA Insolvency Chargeback Scheme (AICS) solves supplier failure chargeback issue for agents.
The Australian Federation of Travel Agents has just announced the formal launch of the AFTA Insolvency Chargeback Scheme (AICS) which will “solve the missing link in the travel agency reform agenda”.
AFTA ceo Jayson Westbury unveiled the scheme at a media event in Sydney, where he said the industry-owned platform would give agents protection from chargebacks in the event of supplier failure, where the money has been already passed onto the travel provider.
AICS has been developed after extensive consultations with the government over the Reserve Bank of Australia credit card reforms, which come into effect for all businesses from 01 September 2017. Travel agents will be able to use the scheme in partnership with a number of credit card processors, with AICS included in the eligible credit/debit card surcharge passed onto the consumer.
This means the protection will come at “little to no cost to the travel agent,” Westbury said. “I am really proud that AFTA has managed to negotiate a reform of the credit card surcharging arrangements that enables travel agents to resolve this long-standing problem that dates back to the collapse of Ansett all those years ago”.
Travel agents will need to be ATAS accredited to access the scheme, with Westbury also confident that innovative merchant service providers which partner with AICS will provide the industry with improved access to affordable credit card facilities. AICS will be operated as a Mutual Beneficiary Fund, under contract by Gow-Gates.
AFTA has ramped up its staff in preparation for the launch, with the recruitment of former Cruise Lines International Association Australasia staffer Amanda Rixon as its new Industry Partnership Executive.
The first approved payment provider under the scheme is TravelPay, with Zenith Payments ceo Andrea Slark saying she was very excited to be able to help fill this longstanding gap in the travel industry.
AICS has an independent board which is to be chaired by former senior Qantas executive Peter Collins. A new website detailing AICS is now live at afta.com.au/aics, where ATAS-accredited agents can now register their interest in becoming members of the scheme.
More information in today’s edition of Travel Daily.