Visa Amends Rules to Help Airline Industry
Visa Inc. announced at a recent meeting of the Airlines Reporting Corporation (ARC)-sponsored Credit Card Working Group (CCWG) that effective October 2015 it will accept airline-supplied flight manifests as a remedy for fraud payment card chargebacks. This remedy represents an opportunity for the airline industry to recoup millions of dollars lost each year in “friendly fraud,” which occurs when a cardholder claims fraud for a transaction they were involved in.
Airline-supplied flight manifests will be accepted as a remedy for fraud when the passenger name matches the cardholder name. With the exception of Verified by Visa authentication, this is the first time a fraud chargeback remedy will be available for airline e-ticket purchases in a card-not- present environment.