Regulatory change is having a negative impact on the bottom line of many airlines, restricting their ability to add surcharges to payments made with expensive-to-accept credit cards. In the meantime, travel agencies are increasingly using virtual cards to boost their own low margins through interchange rebates – but this is further pushing up the cost of acceptance for airlines.
To help, EasyPay has been introduced by the IATA for the issue of tickets through BSP cash payment on a ‘pay-as-you-go’ basis. But there are several barriers to adoption for travel agencies, including complex integration, and little incentive.
- Lower cost of acceptance
- Improved cash flow
- Settlement guarantees
It also allows airlines to provide an additional loyalty layer to channel partners.