Use of payment cards for airline ticket sales is a significant process and set to grow even more. However, airlines bear considerable costs for the processing and the settlement of their payment card sales. In addition, with the growing trend to call centre and Internet sales, airlines are exposed to increasing fraud with compromised card data.
Objectives of Industry Card Services
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Be the centre of expertise for Payment Cards to assist airlines
Often, only large airlines have the in-house expertise in the Payment Card area. Industry Card Services can assist airlines in setting up or reviewing card acceptance procedures, putting an operational structure in place, or advising on fraud prevention and fraud detection activities and more. Industry Card Services, being familiar with the International Card Schemes and being aware of the trends of emerging alternative methods of payment, can support the airlines in reducing their distribution costs. Training can be provided either on a regional basis or tailored to airlines' or agents' individual needs.
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Lead and represent the airline industry
Accepting payment cards, particularly in BSP sales, is a rather complex process due to the number of entities involved and the worldwide reach of the BSP. It is important that the needs and requirements of this industry are voiced and represented to the Payment Card Industry Security Standard Council (PCI SSC) and other groups. Industry Card Services has accepted this role and is pursuing issues for the benefit of the airlines - such as collaboration in the area of fraud prevention and detection, and cooperation with issuers and acquirers.
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Manage and develop IATA Card Services
Accepting payment cards globally is a costly and multifaceted business and requires local knowledge and resources. Industry Card Services, in collaboration with two leading players in the Payment Card industry (Acceyla UK and Euroline/SEB), has developed two products (IATA CardClear and IATA CardAXS), that allow the airlines to accept payment cards worldwide in local currencies. These products simplify the payment process (reduced number of card acceptance merchant agreements and processing contracts), reduce network distribution costs (favourable terms and conditions) and provide consolidated and centralized settlement in multiple currencies at favourable rates. Detailed reports are available to facilitate Head Office reconciliation.
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Lead the PCI DSS compliance program for IATA services and assist Airlines and Travel Agents
The Payment Card Industry has mandated that every entity that handles, stores and transmits payment card data has to adhere to certain standards in order to reduce the risk of data being compromised. IATA is a service provider to the airline industry (the BSP process) and is a merchant (accreditation of Travel Agents, selling of manuals, conferences, training, etc.). In addition, Industry Card Services acts as a facilitator for industry discussions and communication to all relevant stakeholders.
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Propose and develop card fraud prevention strategies
Fraud is a worldwide problem. Fraudsters are becoming more sophisticated and operate globally. Industry Card Services is working to ensure that the available fraud prevention methods, such as CVX2 (Card Security Code), 3-D Secure (Verified by Visa and MasterCard SecureCode) and AVS (Address Verification Service), are supported by agents, GDS and the BSP. It is challenging for individual airlines because of their global distribution network and multiple sales channels to implement fraud prevention/fraud detection tools covering all their sales venues. Industry Card Services works with airlines, agents and GDS to develop solutions that complement the airlines' own efforts in fighting fraud.