BSP Manual for Agents Local Procedures - IATA - Home Arabia_BSP_Chapter 14.pdf · 14.10.2 Ticket Entry on Credit Card Sales ... Representation Name Airline E mails ... Delegate Sakim

BSP Manual for Agents – Chapter 14 Page 1 of 24

BSP Manual for Agents – Local Procedures Chapter 14

Saudi Arabia January 2016 English

BSP Manual for Agents – Chapter 14 – Saudi Arabia Page 2 of 24

NOTICE: DISCLAIMER. The information contained in this publication is subject to constant review in the light of changing government requirements and regulations. No subscriber or other reader should act on the basis of any such information without referring to applicable laws and regulations and/or without taking appropriate professional advice. Although every effort has been made to ensure accuracy, the International Air Transport Association shall not be held responsible for loss or damage caused by errors, omissions, misprints or misinterpretation of the contents hereof. Furthermore, the International Air Transport Association expressly disclaims all and any liability to any person, whether a purchaser of this publication or not, in respect of anything done or omitted, and the consequences of anything done or omitted, by any such person in reliance on the contents of this publication.


FOREWORD: This chapter (Chapter 14) covers local BSP procedures applicable in

Saudi Arabia. For all other applicable BSP procedures please refer to the core BSP Manual for Agents.

CHAPTER 14 - Local Procedures TABLE OF CONTENTS

14.1 ADDRESSES & CONTACTS .......................................................................................................... 5 14.2 PARTICIPATING AIRLINES ........................................................................................................... 9 14.2.1 Participating Airlines List .................................................................................................. 9 14.2.2 Airline Contact Details ...................................................................................................... 9 14.4 STANDARD TRAFFIC DOCUMENTS (STD) ................................................................................ 10 14.4.1 STDs used in Saudi Arabia ............................................................................................ 10 14.4.2. Electronic Ticketing ....................................................................................................... 10 14.5 STANDARD ADMINISTRATIVE FORMS (SAF) ........................................................................... 12 14.5.1 Administrative forms used in Saudi Arabia – General ..................................................... 12 14.5.2 ADM/ACM Procedures ................................................................................................... 12 14.6 COMPLETION OF STANDARD TRAFFIC DOCUMENTS ........................................................... 13 14.6.1 Completion of Standard Traffic documents - General ...................................................... 13 14.6.2 STD Cancellation procedure........................................................................................... 14 14.6.3. Ticketing Authority through BSPlink ............................................................................... 15 14.7 BSP BILLING REPORTS – OUTPUT ........................................................................................... 15 14.7.1 General .......................................................................................................................... 15 14.7.2 BSP Reports available ................................................................................................... 15 14.8 REMITTANCE PROCEDURES ..................................................................................................... 16 14.8.1 General .......................................................................................................................... 16 14.8.2 Method of Remittance .................................................................................................... 16 14.8.4 Post-Settlement Errors discovered by Agent ................................................................... 17 14.8.5 Post-Settlement Errors discovered by the BSP Airline .................................................... 17 14.8.6 Post Settlement Errors Discovered by IATA .................................................................... 17 14.8.7 Net Remittance .............................................................................................................. 18 14.9 SANCTIONS, ADMINISTRATIVE AND CLEARING BANK CHARGES ..................................... 20 14.9.1 Administrative Charges .................................................................................................. 20 14.9.2 Sanctions ....................................................................................................................... 20 14.10.1 General ........................................................................................................................ 21 14.10.2 Ticket Entry on Credit Card Sales ................................................................................. 22


14.10.3 Face to face transactions ............................................................................................. 22 14.10.4 Non Face to face transactions ...................................................................................... 22 14.10.5 Passengers Signature .................................................................................................. 22 14.10.6 Reporting of Credit Card Sales by IATA/BSP ................................................................ 22 14.11 REFUNDS .................................................................................................................................... 23 14.11.1 General ........................................................................................................................ 23 14.12 REPORTING CALENDARS ........................................................................................................ 24


14.1 ADDRESSES & CONTACTS

IATA Regional Office

IATA Regional Office for Middle East and Africa (MENA) Business Park, Building No. 8 King Abdullah II street – Al Shaab Roundabout, PO Box 940587 Amman – 11194 Jordan

Tel: +962 (6) 5939922

Fax: +962 (6) 5939921

IATA Local Office

IATA Saudi Arabia, Al Mohamadyah Plaza, Office No 15, 1st Floor, Medina Road, PO Box 12372, Jeddah - 21473

Clearing Bank

Saudi Arabia

Name of Bank Address Telephone Fax

Samba Final Group

Al Andalus Regional Building Al Andalus Road, Jeddah

+966 2 653 3555 +966 2 6534281

P.O. Box 490 ,21411 Jeddah

Kingdom of Saudi Arabia


List of Approved Reservation and Ticketing System Providers

Sabre

Amadeus

Worldspan

Galileo

Farelogix


LCAG Delegates

The LOCAL CUSTOMER ADVISORY GROUP (LCAG) is a forum where Airline delegates discuss operational issues for the BSP. For any requests towards LCAG, please find the current delegates:

Representation Name Airline E mails

Delegate Mohd. Muneer Ahmed KU [email protected]

Secretary Naser Alsati IATA [email protected]

IATA Secretariat Amer Akhtar IATA [email protected]

IATA Secretariat Adel Ghanem AlMarri IATA [email protected]

Delegate Nabeel Sardar Khan EK [email protected]

Delegate Abdulelah Al Quthami SV [email protected]

Delegate Rajesh Kafle GF [email protected]

Delegate Abdo Abi Allam AF/KL [email protected]

Delegate Motaz Hashim MS '[email protected]'

Delegate Mevlut Kaya TK [email protected]

Delegate Kemeredin Bedru ET [email protected]

Delegate Ishaque Zubair 9W [email protected]

Delegate Ahmad Koya MH [email protected]

Delegate Sakim Suhadi GA [email protected]

Delegate Imtiaz Bhutto PIA [email protected]

Delegate Sayed Anwar RJ [email protected]

Alternative Mahfooz AlGhamdi AF/KL [email protected]

mailto:[email protected]




APJC Delegates The AGENCY PROGRAMME JOINT COUNCIL (APJC) is a forum where Airline and Travel Agency delegates discuss operational issues for the BSP. For any requests towards APJC (e.g.: suggested changes for PAConf), please find the current delegates:

Representation Name Airline / Agency E mails

Delegate Mohd. Muneer Ahmed KU [email protected]

Secretary Naser Alsati IATA

[email protected]

rg

IATA Secretariat Amer Akhtar IATA [email protected]

IATA Secretariat Adel Ghanem IATA

Ghanema@iata.

org

Delegate Nabeel Sardar Khan EK [email protected]

Delegate Abdulelah Al Quthami SV [email protected]

Delegate Rajesh Kafle GF [email protected]

Delegate Abdo Abi Allam AF/KL [email protected]

Delegate Motaz Hashim MS '[email protected]'

Delegate Ahmed Mir QR [email protected]

Delegate Aymen Omairi ME [email protected]

Delegate Paul dorairaj SQ [email protected]

Delegate Khaled AlFadel ICT [email protected]

Delegate Azzam AlMofadda Amikan Travel [email protected]

Delegate Mohammad Ramadan PortfolioTravel [email protected]

Delegate Ali Alshobrami Hafif Travel [email protected]

Delegate Rashid Al-Mugait Al Tayyar Holidays

[email protected]







14.2 PARTICIPATING AIRLINES

14.2.1 Participating Airlines List

Agents subscribing to BSPlink Enhanced can access details of BSP Member Airlines and contact details via the Airlines on BSPlink Functionality

14.2.2 Airline Contact Details

For any queries towards a BSP Member Airline you will find contact details for airlines, on which your Travel Agency have had sales, on the BSP Agent Consolidated Billing Statement, which is included among BSP Reports for each remittance.

BSPlink Enhanced Agents can access the function Airlines on BSPlink and in this way retrieve Airline contact details at any time.

14.3.2 IATA Customer Services Portal Please log your enquiry via our Customer Portal: www.iata.org/cs These queries will be handled with the highest priority.

14.3.3 BSPlink – www.bsplink.iata.org

BSPlink is the user interface for all parties in the BSP Process. This is where you as an Agent will receive all your BSP Reports and corrective actions such as ADM/ACM and Refund Applications are entered and maintained by Airlines and Agents.

Furthermore the Ticketing Authority is maintained by Airlines on BSPlink so you as an Agent can always check which Airlines allow you to sell their tickets. For that functionality, Airlines, Agents and Ticketing System Providers can access the system, so BSPlink adds a full transparency between all parties of the process.

Also, IATA sends any important operational information using the file download function. Make sure to log into BSPlink on a regular basis and check for any new files, ADM/ACMs, or BSP Bulletins for new or changed procedures.

BSPlink can also be used to extract online reports, search for historic BSP data (document data, ADM’s etc.), create groups for many IATA locations, and obtain email notifications for new files and much more.

The utilization of BSPlink has a cost of USD 35 per user, per agency of which is collected through debit memo created by BSPlink management automatically and same is reflected in the agency billing.

http://www.iata.org/cs

http://www.bsplink.iata.org/


All Manuals related to BSPlink processes are available for download at the Download Centre, which is available after accessing the website but before clicking on Access BSPlink.

The local IATA office conducts a mandatory BSPlink system training for any two staff from new Agency locations joining BSP. The Training Fees is SAR 1000. This is also available to existing agency staff who wish to update themselves with latest procedures and didn’t receive this training earlier.

New agents joining BSP will receive their username and password to access BSPlink by email.

In cases of suspension or default, the agent’s access to BSPlink will be limited to File Downloads only where agent will only be able to download their billing reports. For further information please check directly the BSPlink site or Contact Us via the Customer Service portal.

14.3.5 IATA International homepage - www.iata.org

By entering to www.iata.org you will come to IATA’s global home page. Here you can find information on all IATA activities, find ruling resolutions and also buy any IATA publications via the online store. A search tool is available on the site, which will help you to find the information you are looking for.

IATA Virtual Lounge - http://www.iata.org/ps/optinform.htm Stay ahead in the ever-changing air transport industry. Get the information that matters to you. Get the latest on initiatives both industry-wide and in your region, with our newsletters and briefs.

14.4 STANDARD TRAFFIC DOCUMENTS (STD)

14.4.1 STDs used in Saudi Arabia The following STDs are in use at BSP-SA:

- Electronic Tickets - Electronic Miscellaneous Document (EMD) EMDs are an electronic version of manual MPDs and can be issued through GDSs. EMDs ultimately replace VMPDs.

14.4.2. Electronic Ticketing

Electronic Ticketing is Resolution 854 governs the implementation and operation of automated and electronic ticketing systems in a BSP country or area. Guidelines based on the technical, and other, specifications incorporated in the PAConf and PSC Resolutions for the implementation and operation of Automated and Electronic Ticketing in a BSP have been issued to all IATA Managers. A Member or any other party wishing to make facilities available to Agents for the automated issuance of STDs, must advise the local IATA Manager who will verify the technical compatibility of the system with the operation of the BSP, and its compliance with relevant IATA Resolutions in regard to document printing and data reporting formats.

https://www.bsplink.iata.org/bsplink14/entrada/BSPL_E_MAN.html



http://www.iata.org/

http://www.iata.org/

http://www.iata.org/ps/optinform.htm


ET is an efficient ticketing method for Agents and passengers:

For Agents: As there are no paper tickets to account for, stock control for Agents is much easier. Electronic Tickets are automatically reported to the BSP DPC for billing. Electronic Tickets may only be refunded electronically creating opportunities for interfacing to back office systems and providing more accurate accounting and control.

For passengers: With an ET, the passenger does not need to queue at the airport ticket desk to pick up a ticket and can go straight to check-in in the Terminal or at the gate, saving time. Many airports/Airlines have self - Service facilities for ticket / boarding pass issuance using ET which speedup the check in process. Where Agents are permitted to issue Electronic Tickets, Flight Coupons are created by Agents in the airline’s system via an Agents GDS Terminal.

Key features of ET are:

The fight coupons are not printed on physical STDs.

The airline whose ticketing authority is used for the ET transaction will retrieve the flight coupon data when the passenger reports to the airline check-in point or ticketing location.

When creating an ET, the GDS system schedules display will show which flights are available for ET and will confirm whether an ET transaction is accepted.

ET may only be issued where all segments can be ticketed as ET. In cases where an airline

segment is not available for ET (both online or interline), the whole routing must be issued on Airline dedicated stock through the Airline offices.

Electronic Ticketing is available in BSP SA since 01 July 2006. Electronic Ticketing is being enthusiastically embraced across the world. To obtain more information and answers to key questions, you are invited to visit our information portal at: http;//www.iata.org/stbsupportportal/travelagent.htm.

All CRSs of BSP-SA are certified to issue Electronic Ticketing and they provide necessary training to the agents.

Someone will ask what about issuing ETs with interline routes that are non-ready carriers, or continuing journeys on routes that are not ET compatible. Your CRS shall train you on issuing conjunction tickets where you have cases issuing ET and non-ET routes, similar to normal issuance of conjunction tickets.

Agents must process refunds for ET through the GDSs. The automated refunds have to be issued by the same GDS. Remember – ET refunds are limited to refund application authority only. No refund notice shall be processed for ET as they have to be approved by issuing carrier.

14.4.3. Allocation of Electronic STDs – Computer Generated Numbers (CGN)

Computer Generated Numbers (CGNs) for ETs shall be provided to CRSs from IATA, which in turn will assign a dedicated range for each agency location and a new range of series shall be allocated automatically once they are consumed.

Agents must provide passengers with all applicable legal notices and itinerary receipt. Please refer to paragraph 1.5 and 1.9 of BSP manual for agents. The Manual is available for download on the Agent home website at http://www.iata.org/whatwedo/travel-tourism/tah.htm

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http://www.iata.org/whatwedo/travel-tourism/tah.htm


ATTACHED IN THIS CD “CONDITIONS OF CONTRACT” TO BE PRINTED ALONG WITH PASSENGER ITINERARY AND HANDED OVER TO THE PASSENGER.

14.4.4. Handling Void STDs

Daily voiding has been identified as a Best Practice worldwide and as agreed by all members, IATA Saudi Arabia had implemented daily voiding for all STDs effective 01 July 2006.

14.5 STANDARD ADMINISTRATIVE FORMS (SAF)

14.5.1 Administrative forms used in Saudi Arabia – General All BSP administrative forms listed below are available online. Also please refer to Chapter 5 of the main BSP manual for agents for complete procedure form design and completion procedure.

- Refund Application Authority (electronically through BSPlink) - Electronic Credit Card Charge Form (Printed with the E-Ticket in the GDS) - Credit Card Charge Refund Form (electronically through GDS) - Agency Credit Memo (ACM – electronically through BSPlink) - Agency Debit Memo (ADM – electronically through BSPlink)

Agency Debit Memo (ADM)

The ADM serves to notify an Agent that unless there is some justification to the contrary, the Agent owes the issuing BSP Airline the amount shown on the ADM for the reasons indicated. In case of disagreement, the Agent has the option of disputing within its corresponding period (30 Calendar days).

An ADM shall only be processed through the BSP, if issued within nine (9) months of the final travel date. Any claims beyond this period need to be addressed outside of the BSP processes.

Agency Credit Memo (ACM)

The ACM is used in those cases where the Airline owes money to the Agent. The Airline submits an ACM to the Agent, setting out the details of the amount to be credited to the Agent.

14.5.2 ADM/ACM Procedures Where BSPlink ADMs/ACMs have been implemented, the documents are issued either online in BSPlink, or by using a mass file upload feature. This feature allows the airline (or third party acting on the airline’s behalf) raising the ADM/ACM to issue the document in its own system and upload as a file into BSPlink so the Agent can view it. Agents have been put on notice that BSP Airlines’ accounting memoranda must be dealt with immediately and sent to the DPC with the Sales Transmittal of the current reporting period. Failure by an Agent to effect timely reporting of an ADM will lead to the implementation of the Irregularity procedures set out in the Passenger Sales Agency Rules.


ADMs are legitimate accounting tool for use by all BSP Airlines to collect amounts or make

adjustments to agent transactions in respect of the issuance and use of Traffic Documents issued by or at the request of the Agent.

Alternative use of ADMs may exist provided that consultation has taken place either individually with the Agent or a local representation of Agents, or through the applicable local joint consultative forum.

ADMs shall only be processed through the BSP if issued within nine month of the final travel date. Any debt action initiated beyond this period shall be handled directly between the BSP Airline and Agent.

Airlines are required to publish and communicate in writing their ADM policies to Agents in advance of implementation.

Airlines shall provide Agents with the phone or fax number and email address of a person or department that has knowledge of the concerned ADM.

An Agent shall have a minimum of 14 days in which to review an ADM prior to its submission to BSP for processing.

The Airline will either Reject or Approve the Dispute within 60 days of the date of Dispute during which the ADM will not be processed for billing.

If the Airline does not take any action within 60 days, the ADM will be cancelled by the system.

Where ADMs are withdrawn by BSP Airlines, any administration fee that may have been levied will be withdrawn, or refunded to the Agent. In the event the ADM is refunded to the Agent, the Airline cannot charge an administrative fee associated to the refund.

Following consultation and if both parties agree, a disputed ADM may be referred to the Travel Agency Commissioner to be resolved.

An ADM that has been included in the BSP billing will be processed for payment. Any subsequent dispute of such ADM, if it is upheld by the Airline, will be dealt with directly and where applicable may result in the issue of an Airline Credit Memo (ACM).

14.6 COMPLETION OF STANDARD TRAFFIC DOCUMENTS

14.6.1 Completion of Standard Traffic documents - General

The BSP Manual for Agents Chapter 3 describes the completion of standard traffic documents.


14.6.2 STD Cancellation procedure

ET Cancellation:

As a result of recent examples of unjustified cancellation of passenger reservations and electronic tickets by agents it is necessary to clarify roles and responsibilities of agents and airlines.

The business practice of associating with so-called sub-agents by IATA accredited agents is not governed by any IATA Resolution of business best practice. If an IATA Accredited Agent chooses to extend business facilities to a non-accredited location it assumes full and undisputable responsibility for the actions of the sub-agent.

As a result, the accredited agent is responsible to settle BSP any monies owing for any ticketing or other transaction that are reported through BSP. This responsibility is undisputable and failure of the accredited agent to report and settle any sales activity entered into by the sub-agent will result in an irregularity and could lead to default.

Specific instances have occurred where a sub-agent has not paid the accredited agent for a ticket issued by the accredited agent for a ticket “sold” by the sub-agent. This resulted in the accredited agent unilaterally cancelling the reservation and electronic ticket associated with this transaction.

This cancellation is not permitted unless the accredited agent can demonstrate written confirmation from the passenger that he authorizes the cancellation. The accredited agent is not authorized to cancel the ticket because it is not able to collect from its sub-agent. Simply put, this is a bilateral problem between the agent and sub-agent, which cannot interfere with the agent’s obligations to the BSP, nor can that agent take action to void the contract between the passenger and the ticketing airline, which the accredited agent facilitated through its Sales Agent Agreement.

With regard to the passenger whose ticket and reservation has been cancelled, it is likely that they will be unaware of the dispute between the two agents and in all likelihood will have paid the sub-agent. This passenger will proceed to the airport to take the scheduled flight. In this case the passenger most probably will not be listed in the airline’s departure control system as the reservation and ticket is cancelled.

The airline will make a decision to board the passenger based on applicable local law and its own commercial policy. If the passenger is in possession of an itinerary receipt or other documentation proving they entered into a contract with the airline through the accredited agent or sub-agent, the carrier will likely take this into consideration.

In normal circumstance, a carrier may ask the passenger to purchase another ticket and undertake an investigation to determine the circumstances of the missing ET record. If it is proven that the passenger purchased the original ticket in good faith, the second ticket will be refunded. This process has precedent in the procedures used for replacement of lost or missing tickets today.


14.6.3. Ticketing Authority through BSPlink Ticketing Authority is assigned/suspended by Airlines to their appointed Agents through BSPlink. Airlines update their Ticketing Authorization List through BSPlink themselves, and accordingly GDSs will activate Whenever an agent location is deactivated for reasons of default, BSP management deactivate all airlines ticketing authority in BSPlink and GDSs and will keep file download option available in BSPlink, however when agents case is clear and his location is reinstated, the individual airline ticketing authority remain with appointing airlines but not BSP and agent has to contact his appointing airlines to do so through BSPlink. .

14.7 BSP BILLING REPORTS – OUTPUT

14.7.1 General

IATA provides Agents with a range of BSP Reports for each period. The reports are provided in electronic form via BSPlink. The BSP reports are final remittance statement, because the BSP reports are considered as supporting accounting documentation it is important that Agents will save BSP reports for the time prescribed in the local legislation. The reports are available online on BSPlink for the period of 2 months. Old reports can be requested from BSP Regional Office, and if available there is a cost involved with such a rerun.

Reports are provided in the .pdf format and are compressed. Agents are required to have appropriate software (e.g. Acrobat Reader and a WinZip program).

14.7.2 BSP Reports available

Currently following Reports are automatically loaded on Bsplink : 1) R2100 – Agent Set Billing

Frequency: By Billing Period Media: BSPlink Format: PDF Price: Standard – Out of charge

2) R5035 – Yearly Sales and Ticket issues Frequency: Quarterly Media: BSPlink Format: PDF Price: Standard – Out of charge

Please note that you may request reports in other format such as excel or tape at an additional cost by contacting our Customer Services at. https://portal.iata.org/ISSP_Login

https://portal.iata.org/ISSP_Login


14.8 REMITTANCE PROCEDURES

14.8.1 General

IATA produces and forwards to each Agent a billing analysis and summary, through BSPlink on behalf of all BSP Airlines. This statement identifies the amount due from/to the Agent, which is to be settled with the Clearing Bank in strict compliance with published remittance dates. In accordance with subparagraph 1.6.2.1

(d) of Section 1 of Attachment A of Resolution 818g that “remittance shall be made by the agent to reach Hinge Account no later than 12:00 hrs on the remittance date mentioned in the BSP reporting calendar”.

14.8.2 Method of Remittance

Payment methods and clearing bank information

All airlines sales payment should be made to SAMBA Financial Group, Alandalus Branch, Jeddah using the dedicated virtual IBAN numbers assigned to each agency location. Please contact the IATA if you have not received the IBAN number for your agency location. Any remittance made without the IBAN number will be considered as unidentified and the affected agency location may be subject to default action due to non-payment. The IBAN number consists of 24 digits as follows : SA1640C71206370225001144 where SA is the country code,1640C is the unique IBAN code, 7120637is the agents IATA code and 0225001144 is the bank account number of the IATA Hinge account.

Agents should pay exact amounts as indicated in the billing reports. Amounts different to the one mentioned in the billing report creates difficulties in identification. The remittance for a particular period should be made after the remittance date of the previous period to ensure clarity of payments. Any amounts remitted ahead of time or in excess of the billing amount will be returned back to the agent through issuance of ACM and will not be adjusted against any future billings.

Payments to be made according to one of the following methods:

A Direct Debit from agents own account with SAMBA;

A Sariah (Electronic Funds Transfer, EFT) from your bank;

A cash deposit;

Agents should make the remittance as follows:

Beneficiary Name: IATA Hinge Account Account Number: The dedicated IBAN number for each agency location. Beneficiary Bank: Samba, Andalus Branch, Jeddah.

Do not hesitate to contact us should you have any further questions.

These methods of payment are according to Res. 850, Section 7 and BSP Manual for Agents Section 8.3.1.

Payments are accepted at any deposit-taking branch of SAMBA, Kingdom-wide. If you have payment problems at any SAMBA location, please call Samba at their main office in Jeddah on 02 653-3555 ext. 2366/2553.


In order to ensure money value days, it is recommended that payments of sales dues to be made on or prior to 12:00 hrs of remittance day indicated in the reporting calendar, but in no case later than 12:00 noon local time of the remittance day.

Procedures for Credit Notes issued by BSP-SA

In order to ease the process for agents, if your sales are in negative I.e. when refunds are more than sales , please send an official letter to IATA with your agency banking details (your agency bank name, beneficiary name, account number and bank address) signed by the Owner or the official bank signatories (submit copy of the letter sent to the bank authorizing them to sign bank documents) of the agency, authenticated either from bank or chamber of commerce and submit the original letter to IATA. Once we receive the required document our clearing bank – SAMBA will transfer the amounts of the Credit Notes directly to your agency bank account by Electronic Transfer (Al-Sarie) or account-to-account if you have account with Samba.

14.8.3 Reporting Errors and Missing Remittance Notice (Billing reports)

Where an Agent, for whatever reason, has not received his Notice of Billing Statement by the remittance date, he is required to carry out the following:

Notify IATA that the Notice of Billing Statement has not been received;

Establish and agree with IATA the amount due for remittance on the remittance date.

Where an Agent’s remittance amount is affected by a Ticketing System Provider, that fails to report parts of agency sales for the referred period or due to Agent’s own negligence to report issued tickets he is required to carry out the following:

Notify IATA Establish and agree with IATA the amount of deposit due for remittance on the remittance date or on a

date advised by IATA.

The Agent must ensure that sufficient funds are available to facilitate the settlement process.

14.8.4 Post-Settlement Errors discovered by Agent

It is adjusted either by issuing an ADM/ACM

14.8.5 Post-Settlement Errors discovered by the BSP Airline


14.8.6 Post Settlement Errors Discovered by IATA



14.8.7 Net Remittance

NET REPORTING IS AN AGREEMENT BETWEEN AN AIRLINE AND AN AGENT TO REPORT STDS AT A

VALUE OTHER THAN THE PUBLISHED FARE. THE DIFFERENCE BETWEEN THE AMOUNT ENTERED IN THE STD’S FARE BOX AND THE AGREED FARE MAY BE A SUPPLEMENTARY (COMMISSION) AMOUNT IN THE AGENT’S FAVOUR, OR THE AGENT MAY SELL THE STD AT A REDUCED PRICE TO CUSTOMER. WHEN AN AIRLINE ENTERS INTO AN AGREEMENT WITH AGENT AUTHORIZING THE AGENT TO SELL NET REPORTING STDS, THE AIRLINE

ESTABLISHES A SPECIAL CODE(S) (E.G. TOUR CODE, COMMERCIAL AGREEMENT REFERENCE) WITH THE AGENT.

The following are the local net remit ticketing procedures followed by participating

carriers in BSP-SA. They are:

2e and 3c

Net remittance method 2E


Net remittance method 3C


14.9 SANCTIONS, ADMINISTRATIVE AND CLEARING BANK CHARGES

All references to Sections, Paragraphs and Subparagraphs below are references to Sections, Paragraphs and Subparagraphs as prescribed in Resolution 832 of the Travel Agent’s Handbook, unless stated otherwise.

14.9.1 Administrative Charges

Administrative charges are levied against agents failure to act according to applicable rules and procedures in accordance with Res. 832 Sub Para 7.1.1a. These charges are applicable per calendar year January to December for Para 9.1 and 9.2 as mentioned below. The IATA ‘point system’ will continue to operate with letters of irregularity and default action taken accordingly.

Interest and Clearing Bank Charges

Late or incomplete Remittance

Late Payment Fees - USD128+ (Bank base interest rate of unpaid amount + 2%) x no. days/365

“Reinstatement Recovery" – USD119

Void Charges:

SAR 8- for each void STD in excess of 3% of the total number of issued STDs

14.9.2 Sanctions

An Agent shall receive a demand notification letter for any unauthorized short payment or in instances where a payment is returned.

As per the demand letter an agent has twenty-four (24) hours to settle the outstanding amount due.

If the outstanding amount has not been settled within the twenty-four (24) hour period, IATA shall invoke default action.

When default action is invoked, Ticketing Authorities are withdrawn from the Agency and the Agency is placed on cash basis.

The GDSs and airlines in the market are then advised accordingly.

If an Agency receives two demand letters within a period of twelve consecutive (12) months, the Agency will automatically be placed in technical default as this would result to accumulation of 4 instances of irregularities.

One (1) demand letter is equivalent to 2 instance of irregularities

Technical default will result in the withdrawal of Ticketing Authorities


14.10 CREDIT CARD SALES

14.10.1 General

Subject to the authority of the ticketing Airline and the procedures set out in this manual, an Agent may accept Credit Cards and/or Charge Cards in full payment for ticket sales on behalf of the plated airline through GDS. Failure to comply with the procedures herein and/or the airlines policies may result in the transaction being billed as cash to the Agent’s Billing and once such action is taken, the airline will not retrospectively accept a card as payment for the transaction. Furthermore should a customer dispute and refuse to pay a transaction appearing on their Card Statement where such transaction was generated by an Agent, the airline will raise an ADM for the full value of the rejected transaction and the Agent must settle it. It is important that all Agents understand the general principles of Credit Card transactions. Please refer to resolution 890 and attachment “A” of resolution 818 section 1.

Credit Card Sales local procedures

An Electronic Credit Card Charge form (CCCF) is printed through GDS when issuing a Standard Traffic Document against a credit card or under a credit scheme recognized by the BSP Airline concerned.

(a) Procedure for Completion of CCCFs through GDS

All the transaction details are printed on the Electronic CCCF which must be signed by the cardholder.

(b) Reporting

After issue and completion:

The original signed Electronic CCCF must be submitted to the respective airline office within 48 hours of issuance.

One copy to be retained by the Agent.

One copy to be handed over to the cardholder.

It is important that credit sales are reported to the airline on the day of sale since the issuing airline has only a limited time to secure payment from the credit card company. Late reporting CCCF is penalized according to the provisions of the Sales Agency Rules. If the issuing Airline is unable to secure payment from the credit card company because the Agent failed to adhere to the procedures set out above, then the issuing Airline will raise an Agency Debit Memo against the Agent for the amount of the credit sale.

(c) Special Mailing Instructions

Special envelopes are used to report credit transactions to the issuing Airline. They are clearly marked “CCCF” to secure instant recognition and priority in processing by the Airline’s Accounting Department.

Credit transactions are always reported to the Airline separately from the main Sales Transmittal submission, even credit transactions made on the same day as the Sales Transmittal.


However, the serial numbers of Traffic Documents issued in credit transactions are to be recorded on the Agency Sales Transmittal form of the reporting period during which the issue was made. This practice provides a protection for the Agent and an inventory control tool for the Processing Centre.

Please ensure that the airline accepts the credit card type being used to avoid later rejection.

14.10.2 Ticket Entry on Credit Card Sales

When accepting the Credit Card on the behalf of an Airline the credit Card details shall be entered in the Form of Payment box of the ticket. Credit Card number must follow a specific format

For Entry in the Ticketing System the Agents must control the applicable format with the Ticket System Provider. The format shall cater for Approval code and Date of Validity

14.10.3 Face to face transactions

For face-to-face credit card transactions the Airline will hold Agents responsible if customary safety precautions were not taken and result in the Credit Card being rejected due to fraudulent use.

14.10.4 Non Face to face transactions

These are transactions where the cardholder is not present at time of issue. Such transactions are either made by telephone or mail order or against signature on file.

These sales are accepted at the risk of the Agent. Any charges in respect of disputed transactions will be passed back to the issuing office. Where a BSP Airline incurs a loss and such loss is attributable to an Agent’s failure to adhere to the instructions of the Airline in respect of credit card sales, the Airline may invoice the Agent for such loss. (In normal cases, an ADM will be issued by the Airline.)

14.10.5 Passengers Signature

Some airlines require approval by the Cardholder for tickets issued against Credit Card. This is expressed by a cardholder’s signature. In those cases an Electronic Credit Card charge form is printed (described in later paragraph) the cardholder shall sign the CCCF.

14.10.6 Reporting of Credit Card Sales by IATA/BSP

All Credit Card Sales are reported on the BSP Billing Analysis and Statement under a separate column. The commission amount is credited to the Agent in cash and as such is deducted from the total balance payable.


14.11 REFUNDS

14.11.1 General

An Agent is permitted to effect refunds on STDs that were issued and reported by the Agent himself only. In all other cases, prior permission must be obtained from the Airline whose document has been used.

In all cases where prior permission to effect a refund must be obtained from the Airline concerned, either as a matter of policy or because the Agent cannot compute the refund himself, an Airline Refund Application Authority must be issued.

In all cases where the Agent does not know how to calculate or effect a refund, a Refund Application Authority Form must be used. For tickets purchased part cash part credit, use the credit refund.

Refunds of unused STD

Refunds of unused Traffic Documents (applicable only where the Airline has authorized the Agent to make the

Refund)

All refunds are restricted to refunds through GDSs. Please refer to Chapter 11 of the BSP Manual for agents for complete procedure. I.e. direct refund, Refund Application notice, and handling of refunds by IATA member.

Refunds for Electronic Tickets must be processed through GDSs only, as prior approval of the issuing airline is essential. The airline system shall give approval for refund along with authority code they are given instantly through the system.

Completion of refund application authority for some tickets may be made through BSPlink for particular fare construction, however it is much easier to do it through GDSs. Reasons why it is advisable to do refunds through GDSs is because it gives perfect calculations and avoids errors due to the fact that the GDS holds the original ticket details in its data base.

Ensure to follow correct ticketing procedure while processing refunds as the GDS and BSPLink controls may reject refund transactions not completed properly. Also follow individual airlines instructions and rules related to their own refund charges or period allowed for refund so to avoid unexpected ADMs.


14.12 BSP REPORTING CALENDAR

The reporting calendar shows all important dates of the BSP remittance process. Agents are obliged to check the dates in the calendar which you can find on our Customer Portal: www.iata.org/cs

http://www.iata.org/cs