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San Francisco’s dominant airline informed some travel agencies that as of July 20 it will no longef let them process credit and debit card purchases for airline ticketzusing United’s merchant-processing Instead, such agencies woulfd have to require travelers to pay with cash, process card paymentzs with the agency’s own merchant processinf service and forward the cash to Uniter or book the tickets on United’es web site using the traveler’s credit or debif card issued by , (NYSE: V) , MA) (NYSE: AXP) and others.
An agent using United’sa web site, bypassing such trave systems as Apollo and would not allow companies to captures the discounts they have negotiated with United nor woul it allow their travel agent to survey several carrierzs on a route to find thelowes price. “Several Bay Area companiees have deals with United Airlinesfor discounts,” said Marc president of Casto which isn’t among the agencieds that United has cut off from its merchant-processingg service. Casto says he’s reached out to some of the firm’es corporate clients to express concernover United’s new card acceptancer policy, but declined to discuss what was said in thoswe conversations.
United Airlines (NASDAQ: did not respond to requests for comment. Unitedx is hoping to shift the cost of acceptinb credit and debit cards onto selectedxtravel agencies. Those agencies say the airline’se move shifts to them the risk for payinyg out refunds if the carriegoes bankrupt. While it’s also likelyg to reduce the amount of monehy that United has to keep in the bank to guardsagainst charge-backs, it would increase those requirements for the travel That’s a nonstarter for most agencies — and theird banks, which would have to honod charge-back requests that could total billions of dollar s in the event of an airline “I don’t think there’s any travel agency, includingy American Express Travel, that could shoulder that Casto said.
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