1 October 2009
We have received reports concerning the activity of credit card company providers to promote the use of their cards as a BSP product.
For example, the card company may propose to issue a card in the name of the IATA Accredited Agent, to be used as the form of payment for tickets issued by the agent, so that the value of such tickets would be charged to the agent’s card using the merchant agreement of a BSP airline.
In the light of the above we are bringing to your attention the provisions of Resolution 890 (Card Sales Rules), which provides the authority for agents to make use of merchant agreements of BSP participant airlines. Paragraph 1.4 expressly prohibits the use of cards issued in the name of the agent:
“No Card issued in the name of the Agent, or in the name of a person permitted to act on behalf of the Agent, or in the name of the Agent’s officer, partner or employee, shall be used in connection with the sale of air transportation on behalf of a Member/Airline to any customer of the Agent.”
Thank you for your co-operation in this matter.