Newsroom

ARC Debit Memo Working Group Explores 7 Percent Memo Increase

Credit Card Chargebacks Remain a Key Concern Globally


ARLINGTON, Va. – May 18, 2017 – The Debit Memo Working Group (DMWG)—which is facilitated by the Airlines Reporting Corp. (ARC)—discussed the current state of debit memos in the travel industry during its meeting held last week in Alexandria, Va. Specifically, the group explored reasons behind a 7.1 percent increase in the number of debit memos in the U.S. between 2015-2016. Despite the increase, the majority of U.S. carriers have seen a substantial decline in debit memos.

Credit card chargebacks remain the top reason for debit memos. The DMWG reported a 10 percent increase in dollar volume for chargeback debit memos between 2015 and 2016 and a 29 percent increase in chargeback memo count for the same period. The spread of chip-embedded credit cards may be a leading cause of this increase, as it has shifted many instances of fraud to online vendors.


To continue to combat the increase in debit memos and chargebacks, the DMWG set its priorities for the rest of 2017. The group discussed best practices for the debit memo process, found common ground and identified gaps. In the coming months, the group will work on these best practices with a goal of finalizing the work this fall. The group will also concentrate on issues surrounding fare filing—how a carrier communicates all the rules for the fares they file—in an effort to increase ticketing accuracy, reduce complexity and help to reduce errors that result in debit memos.

“While we have made great strides reducing debit memos, there is still more work to be done. With the great amount of collaboration we have on the DMWG, we feel confident we’ll be able to see more progress in this area in the future,” said ARC Manager of Settlement Services Shelly Younger.

The DMWG includes representatives from airlines, travel agencies, system providers and key stakeholder organizations. The next in-person meeting will be held October 18, immediately before ARC’s annual TravelConnect conference in Washington, D.C., October 19–20.

About ARC:
The Airlines Reporting Corporation (ARC) is the premier driver of air travel intelligence and commerce in the travel industry with leading business solutions, travel agency accreditation services, process and financial management tools and high-quality data. In 2016, ARC settled $86 billion worth of carrier ticket transactions for nearly 7,000 travel agencies with more than 12,000 points of sale. Established in 1984, ARC is an ISO 27001 certified company headquartered in Arlington, Virginia, with offices in Louisville, Kentucky, Tampa, Florida and San Juan, Puerto Rico. For more information, please visit www.arccorp.com and www.twitter.com/arctalk.

Contact:

Hillary Smith
703.341.1207
hsmith@arccorp.com

©2017 Airlines Reporting Corporation (ARC). All rights reserved.

About ARC

The Airlines Reporting Corporation (ARC) is the premier driver of air travel intelligence and commerce in the travel industry with leading business solutions, travel agency accreditation services, process and financial management tools and high-quality data. In 2016, ARC settled $86 billion worth of carrier ticket transactions for nearly 7,000 travel agencies with more than 12,000 points of sale. Established in 1984, ARC is an ISO 27001 certified company headquartered in Arlington, Virginia, with offices in Louisville, Kentucky, Tampa, Florida and San Juan, Puerto Rico. For more information, please visit www.arccorp.com and www.twitter.com/arctalk.