Changes to ARC’s Weekly Cash Disbursement and Refund Processes
As announced via email to ARC’s travel agency customers on October 29, 2020, ARC has been informed by its settlement processor bank, U.S. Bank, that all ACH debits must be secured by the bank prior to being disbursed as part of the ACH process. U.S. Bank has taken this position as part of its own risk mitigation practices associated with the COVID-19 pandemic. As such, ARC is required to make updates to its settlement calendar until further notice. ARC’s primary objective in this instance is to provide an equitable solution for the market and ensure airline and travel agency customers will continue to receive any funds they are owed as soon as possible.
To comply with the bank’s requirements, ARC will require all airlines to wire any funds owed and process cash debits from its travel agency customers on the Friday following the end of the sales week (five days after the period ending date, or PED+5). ARC will then process wires to its airlines and credits to its travel agency customers the following Wednesday (PED+10). These changes will go into effect beginning PED 11/08/2020. When banking holidays fall on a Friday or Monday, this schedule will adjust slightly. A visualization of the new calendar, including holiday scenarios, is available here.
For the travel agency community, this means customers who authorize a weekly sales report with a cash debit balance will be drafted five days after the close of the sales week (Friday), whereas customers who authorize a weekly sales report with a cash credit balance will disbursed funds 10 days after the close of the sales week (the following Wednesday).
- These changes apply to ARC cash settlement transactions, including ARC Pay.
- These changes do not affect credit card transactions.
Tip of the Week: Paying an Inactive Memo in Memo Manager
Airlines can set an age limit for their memos. If no action is taken on a memo within the specified timeframe, the memo becomes inactive. When a memo is in an inactive state, the travel agency cannot dispute it. The airline does have the ability to, at its discretion, re-activate memos that have become inactive.
Even if the memo is in an inactive status, an agency can still make a payment on it. To make a payment, simply click on the Pay button located at the top of the Memo Details page. Then, the memo will change to an “Open – Payment Pending” status, and an agency can process the memo.