FlyerTalk Forums - View Single Post - Credit card companies refusing payments for JL ticket issues overseas?
Old Oct 1, 2009 | 6:56 pm
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Originally Posted by wandering_fred
I think the banks are very nervous about all airlines. I have dealt with an online TA (HKG) that can no longer afford to accept Visa/MC since the holding period on the funds is apparently so long, the transaction is no longer profitable.

In this particular case, I wonder how much pressure the airlines are putting on the banks - since the alternative is to book online (or direct) with the airline rather than the TA. And therefore a great deal more profitable to the airline.

Fred
JAL actually is trying to improve relationship with TA to help improve their bookings. At least that's what they said in the press release a while back. Of course it will be more profitable if you book the ticket directly through the airlines but who in their right mind would do it. A K class LAX-HKG ticket in Nov on JAL website is around 1300 but is only around 1000 through JTB. That's 30%+ more expensive...And there's no way to put yourself on waiting list through their website either. You have to buy whatever the cheapest class available at the time...if they really want to attract more people to buy tickets from their website, they need to be a bit more competitive on the price and improve usability.

Can airlines really pressure the bank? I think your case has more to do with the financial crisis when all the credit card companies withhold payments for a longer period of time on all transactions, not just air ticket purchases through TA.
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