denCSA

BINGO. Ultimately, this behavior by UA is pretty disturbing as it is beginning to challenge the laws in place meant to protect consumers (this is not simply about low-volume TAs). Shifting the burden from itself to consumers for services not yet rendered could be in violation of the Fair Credit Billing Act, and thankfully there are a number of congressmen and woman catching on. So far, they have requested UA delay the implementation of this new decision until a formal complaint can be made:

http://www.travelweekly.com/article3_ektid197598.aspx

JerryFF

Believe it or now, the airlines have already offloaded the credit card risk. If a travel agency issues a ticket through a CRS and the credit card holder later denies the charge, the airlines hold the agency fully responsible for the full payment.

Intrepid

Good for you.
I have no strong opinion on the matter, except being amused by UA desperate business maneuvers.
As a user of united.com I don't care about the travel agents. However - the TA are UA's customers. Why alienate them too?


I agree.
One has to watch this UA maneuver in the light of the expected quaterly loss report:
"United, which is expected to post a second-quarter loss of about $350 million when it reports this week, and is looking to conserve cash, will stop processing credit-card transactions for certain travel agencies on Monday.

That means those agencies will have to start paying the 3.5 percent credit card processing fees that UAL currently absorbs -- $17.50 on a $500 ticket -- a cost that will likely be passed on to customers. "
http://www.nypost.com/seven/07192009...l_t_180144.htm


Worried about what?
This is the question !

I burned in the last 2 weeks 75K RDM.
Left with 234K RDM to unload. That will happen in late August. Hope UA survives till then. I have creeping doubts.

The law of unintended consequences.
Yup. Desperate acts breed desperate acts.

LIH Prem

I know that came from the distinguished newspaper, the NY Post and not you, but I seriously doubt that United or any reliable TA pays anything close to 3.5% credit card processing fees. That's ridiculous.

-David

Intrepid

I hope you are right. I agree that the NY post is not a distinguished source... And hopefully the TAs don't pay that high service fee to the bank.

However, the expected Q2 loss is real and bothersome. Don't blame the NY Post for the operations loss....

hyho61

On many discounted international tickets I buy from the travel agents, the TA's accept only cash or checks. If I pay by credit card, they charge an extra 2 to 3%. But this is not for all airlines, the TAs mention which airlines accept credit card and which do not.

GoingAway

I presume these are trusted relationships for you, otherwise paying cash/check is not a good idea (obviously).

The issue with this transaction happening in two pieces: consumer pays TA; TA pays airline is that it is an invitation for fraud to occur. You think the ticket is set, so you pay the TA, then the TA cancels the ticket and you're swinging in the wind -- same issue with cash. Obviously, not if you're dealing with a Carlson or Amex, but the smaller agencies already have fraud issues. There is also the concern if an Agency if having cash flow problems, they could mis use the funds and then not have the money available to cover for the travel arrangements you've already paid for. It will be a game played and the consumer will be the ping pong ball between the players - the consumer loses across the board, including the protections they now have with a credit card purchase. Also, the tickets will require involvement by the TA to make changes more frequently, as its their money, effectively not the consumers involved. It's a lose-lose for the consumer in the end.

It doesn't impact me for the most part as I prefer the direct purchase route, but have worked with clients that require my airline purchase goes through their TAs (despite additional fee). I also use an Orbitz, Travelocity, etc on occasion for combined air tickets or good deals.

ps As the TAs are also smaller shops in most instances, their credit card fees are likely higher than any UA would hve negotiated, thereby increasing the cost of the ticket for no added value, as well

tcook052

Yes, many consolidators here in Canada have started to add these "processing" fees on to fares for some, though not all, airlines. The only trouble with this is when you're advised of the fee as at times it isn't mentioned until the actual payment screen and a revised grand total.

eclipse_boi

Posted on TravelPulse today:

In response to lobbying from more than a dozen congressmen, United Airlines has agreed to delay implementation of its new policy denying smaller agents the ability to use United’s credit card merchant account for booking United tickets. On Friday it said that it will notify all 28 agents who had been told they could not make airline bookings using United’s credit card merchant account that they can have up to 6 additional days to make transition. United also sent a letter to lawmakers attempting to explain the rationale behind its move.

“First, this action was very limited in scope, confined to a small number of agencies and in no way was intended to be a broad move in the marketplace as has been interpreted by outside organizations,” wrote Jeff Foland, senior United’s vice president-worldwide sales and distribution. “United has commercial arrangements with thousands of agencies worldwide to distribute our services, and has many current and long-standing relationships under which the travel agent acts as the merchant of record. The ability to tailor our relationships and programs with these agencies is paramount to our ability to efficiently and effectively bring our service to market. United understands the value that travel agencies provide to our success and will continue to tailor commercial programs and invest accordingly in those relationships.

“Finally, this action neither violates nor undermines the Fair Credit Billing Act,” Foland wrote. “There will be no difference in how credit card disputes will be handled from a customer’s perspective. Customers who charge their tickets with travel agents will have the same rights they have always had, including the right to dispute charges to their card issuer for non-performed services. This is the case when the impacted travel agents use United’s merchant account; it will continue to be the case when the impacted agents use their own merchant accounts.” For more information, visit www.united.com.

CaliforniasCentralCoast

United Airlines’ move to force some agents to pay credit-card fees when their customers buy tickets with plastic is certainly a “trial balloon” but it raises a question for agents and consumers: will it catch on with other carriers?

“Given the usual herd mentality in the industry starting way back when commissions were reduced and carrying forward to today's myriad of baggage, mileage redemption and call center fees, it would not be surprising to see this play out in a broader way,” says PhoCusWright Connect.

More details at:

http://www.travelmole.com/stories/11..._id=s~Y!s~mv~A

Ripper3785

Mrs. Ripper3785 works for a Maui based agency and that is approximately their cc processing fee. Unless you're suggesting that any small agency is not reliable. (Which I'd also take issue with) Of course UA doesn't pay a high fee. It's all about volume. The less volume, the higher processing fees you pay.

GoingAway

but is the Agency one of the 28 or so TAs that are being forced to use their own card processing?

tcook052

http://www.smartbrief.com/news/asta/...4-B8041A1C3F6B

United Airlines said it would postpone implementation of its new policy that shifts credit card fees to some travel agencies. Although travel agent groups, including ASTA, saw the concession as a minor victory, they are still striving to get the airline to reconsider the measure altogether. "The impact will definitely shutter some of those agencies, and if United is allowed to get away with this, you can be sure that other airlines are sitting on the wings and will follow suit, and still more agencies will be affected, which will affect jobs across the entire country," said Chris Russo, president and chairman of ASTA.

cliffedelgado

Hi,

One travel agent notified me that UA does not accept credit card anymore. They are willing to process the CC in house for an extra 4% fee... else it's cash/check which seems like a major hassle.

Another travel agent said that for bulk airfare, they can not accept credit cards. And suggested I go buy from UA's own website..

I've bought from these travel agents before using a credit card without issue.

Is this a new UA policy?? Anyone else experienced this?

Thanks,

cliffedelgado

EricH

Travel agent#1 is trying to screw you. Travel agent #2 is giving you good advice, as in don't use travel agents.