FlyerTalk Forums - View Single Post - AA & United MILES PROGRAMS to end soon...?

Jul 16, 2009 | 3:15 pm

#23

mia

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Quote:

Originally Posted by sbm12

...if the carrier fails the CC company is on the hook, not the consumer, for the ticket costs. The consumer can just get their money back from the CC company.

And the credit card processor, more than likely, will have held back much of the money from the carrier....

At this time last year, United had $382 million held back, or 25 percent of advance credit card sales. United reached a deal with Paymentech and JPMorgan Chase Bank to cut that amount to $25 million, but the amount would rise if UAL's cash balance declines. UAL would also have to post reserves with American Express if its cash balance falls below $2.4 billion -- it was $2.46 billion on March 31, according to regulatory filings.

http://www.miamiherald.com/business/...y/1144331.html

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