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2NewGen ISS
NewGen ISS
Integrated Program Elements
Credit Management
Global Default Insurance
Agency Accreditation Models
IATA EasyPay
NewGen ISS has a Customer Centric vision aiming to create a faster environment with a safer
and easier governance, and accreditation practices that will deliver relevant solutions for the
industry.
NewGen ISS is composed of four key interconnected areas of focus:
3NewGen ISS
Standard Accreditation no Cash
Facility
Standard Accreditation with Cash
Facility
Multi-Country Accreditation
Cash
CC
IATA EasyPay
Cash
CC
IATA EasyPay
Cash
CC
IATA EasyPay
Yearly Financial Assessment
Credit Limit
Financial Security / Default
Insurance
Quarterly Assessment of Parent
Credit Limit
Financial Security / Default
Insurance
Credit Limitn/a
Financial Assessment
Chargeback Insurance
Parent Guarantee
incorporated into PSAA
NewGen ISS
Accreditation Models
Agents may voluntarily convert across models as their business evolves, while maintaining their IATA
code(s).
4NewGen ISS
Standard Accreditation with no
Cash Facility
Standard Accreditation with Cash
Facility
Multi-Country Accreditation
NewGen ISS
Accreditation Models Value Proposition - Agents
Entry point into the BSP
Minimal financial requirements & related costs may
facilitate retention of existing agents
Flexibility for agents to later convert to a cash facility
Based on current accreditation model but with an
improved risk management process
Access to credit facility and all methods of payment
One-stop accreditation for agents operating in
multiple BSPs
One set of clearly established global requirements
and criteria (includes compliance with local rules)
One risk management process & aggregated credit
limit for the entire group
5NewGen ISS
Standard Accreditation with no
Cash Facility
Standard Accreditation with Cash
Facility
Multi-Country Accreditation
NewGen ISS
Accreditation Models Value Proposition - Airlines
Increased distribution potential while minimizing risk
May address loss of accredited agents in specific
markets
Airline choice whether or not to grant ticketing
authority
Based on existing accreditation model
Introduction of credit limit management to mitigate
risk exposure
Parent entity undertakes legal and financial
responsibility for the entire group
Visibility of group’s sales activity across BSPs
Smarter risk management at the parent level and on
a more frequent basis (quarterly)
6NewGen ISS
NewGen ISS
Standard Accreditation
Access to only IATA EasyPay or the Passenger’s Credit Card as forms of payment
Compliance with minimum accreditation criteria
Limited financial risk
Chargeback Insurance or alternative security required to cover risk associated to
Credit Card chargebacks or other ADMs
Standard Accreditation with no Cash Facility:
Accreditation in a single BSP
Minimum requirements ensure all Agents are legitimate businesses selling travel
Agents choose whether to access a Cash Facility
7NewGen ISS
NewGen ISS
Standard Accreditation
Standard Accreditation with Cash Facility:
Access to all forms of payment
Credit limit applicable Calculation will be defined in Resolution
Compliance with minimum accreditation criteria and Local Financial Criteria (LFC)
Annual financial review per Local Financial Criteria
Ongoing Credit History assessment
Financial Security provided based on Agent’s Credit Status / LFC
Financial Security Calculation defined in LFC
Accreditation in a single BSP
Minimum requirements ensure all Agents are legitimate businesses selling travel
Agents choose whether to access a Cash Facility
8NewGen ISS
NewGen ISS
Multi-Country Accreditation
A single accreditation & risk management process for the entire group defined in
Resolution
Any location of the Multi-Country group sharing more than 50% common
ownership will fall under the Multi-Country Accreditation
Multi-Country is open to any agent operating in multiple BSPs that can meet the
applicable requirements
9NewGen ISS
Key features of the Multi-Country Accreditation Framework:
NewGen ISS
Multi-Country Accreditation
Global accreditation requirements and criteria defined in Resolution
Compliance with any local legal requirements
Parent entity signs one PSAA for all locations worldwide
Legal & financial responsibility incorporated into the PSAA
Quarterly assessment of the Parent entity under a Multi-Country Assessment
Framework
Credit history assessed at group-level
Aggregated credit limit established for entire group
Financial Security required if Parent fails financial assessment or credit history
Financial Security calculation defined in Resolution & aligned with Resolution 800f
10NewGen ISS
NewGen ISS
Credit Events vs Administrative Non-Compliances
Credit Event:
Incident related to the agent’s credit
worthiness & ability to pay
e.g. Late/short payment
Administrative Non-Compliance:
Agent failure to comply with
accreditation requirement
e.g. Failure to report change of
location
Current:
Irregularity
Agent failure to meet requirements
incl. matters related to reporting &
remittance rules
Proposed:
Payment-related defaults will continue to result in the withdrawal of all ticketing.
11NewGen ISS
NewGen ISS
Overview of credit management model
Accreditation
ModelCredit Status
Credit
Conditions
Cash
Facility
Financial Review +
Credit History
Financial Security +
Remittance Frequency*
‘Credit’ Available to Agent
* Only applicable for countries with multiple remittance frequencies.
12NewGen ISS
The result of the financial review and credit history will determine the credit status
of an agent and applicable risk management conditions.
One of three status’ will be assigned (A, B or C) will be assigned based on the
following:
NewGen ISS
Credit Status & Conditions
Multi-Country Agent Standard Agent
Financial ReviewMulti-Country
Assessment FrameworkLocal Financial Criteria
Credit History Credit Events number and type
13NewGen ISS
C
B
A
Credit StatusFin. Review Credit History
PASS PASS
PASS FAIL
FAIL PASS
FAILFAIL
Credit Conditions
Cash Facility
Financial Security only if required
in LFC for Standard Agents
Financial Security
Standard remittance frequency of BSP
Standard remittance frequency of BSP
*
Cash Facility
Financial Security
Most frequent remittance frequency in
the BSP*
Cash Facility
Assessment
NewGen ISS
Credit status & Conditions
* Only applicable for countries with multiple remittance frequencies.
14NewGen ISS
NewGen ISS
Credit History Assessment
Credit Events will impact the Agent’s Credit History based on the number of
occurrences:
15NewGen ISS
Agent’s
Credit LimitAgent’s accumulated cash sales
Day 1 Day 2 Day 3 Day 4 Day 5 . . .
Current Period SalesPrevious Period Sales
Remittance Date
Day 6
$
Continued selling
using CC and IATA
EasyPay
Open to advanced
remittances at any
time.
Option to amend
financial security
amount and increase/
decrease credit limit
How will it work?
Managing the credit limit
Open to IATA EasyPay
at anytime
A monetary limit to the agent’s outstanding cash sales (monies
at risk) will be established for all Agents with a Cash Facility.
16NewGen ISS
C
B
A
Credit StatusFin. Review Credit History
PASS PASS
PASS FAIL
FAIL PASS
FAILFAIL
Credit Limit
Assessment
Equal to financial
security amount
provided
NewGen ISS
Credit Limit Calculation
*The Financial Security calculation is a separate calculation defined in Local Financial Criteria
17NewGen ISS
NewGen ISS
Credit Limit Management
Agent pays 60 on
Day 4 in advance of
next remittance date
Agents can manage their credit limit by paying outstanding monies in advance of
remittance date:
Agent’s Credit
Limit re-opens
by 60
18NewGen ISS
NewGen ISS
Credit Limit Management
Agent’s Credit
Limit increases
by 30
Agent provides
Financial Security
for an additional 30
Agents can increase their credit limit by providing additional financial security:
19NewGen ISS
NewGen ISS
Credit Limit Management
Agent’s Credit
Limit decreases
by 30
Agent reduces
Financial Security
by 30
Agents can also choose to provide a lower financial security. In turn, a lower credit
limit will be assigned:
20NewGen ISS
NewGen ISS
IATA EasyPay
A new industry payment method:
‘Pay-as-you-go’ solution
Alternative to cash and credit card form of payment
Voluntary for agents to use
Funds secured at time of issuance (no chargebacks)
21NewGen ISS
NewGen ISS
IATA EasyPay
Available for all Airlines
150 BSPs
Voluntary
Benefits for Agents
Available for all Airlines
150 BSPs
Voluntary
IATA EasyPay
New accreditation
models
Reduced bank
guarantees
Voluntary
Easy
22NewGen ISS
NewGen ISS
IATA EasyPay
Available for all Airlines
150 BSPs
Voluntary
Benefits for Airlines
Available for all Airlines
150 BSPs
Voluntary
IATA EasyPay
Fast
Economical
Globally Available
Secure
23NewGen ISS
NewGen ISS
IATA EasyPay
Agent’s
Credit LimitAgent’s accumulated cash sales
Day 1 Day 2 Day 3 Day 4 Day 5 . . .
Current Period SalesPrevious Period Sales
Remittance Date
Day 6
IATA
Easy-
Pay or
CC
$
Continued selling using
IATA EasyPay or CC
IATA EasyPay may
voluntarily be used
prior to reaching the
Credit Limit
IATA EasyPay will enable the introduction of Credit Limit Management,
but can voluntarily be used at any time
IATA
Easy-
Pay or
CC
24NewGen ISS
NewGen ISS
IATA EasyPay
IATA EasyPay will also enable the introduction of new Accreditation Models, and
can be used by all Agents
Standard Accreditation no Cash
Facility
Standard Accreditation with Cash
Facility
Multi-Country Accreditation
Cash
CC
IATA EasyPay
Cash
CC
IATA EasyPay
Cash
CC
IATA EasyPay
Yearly Financial Assessment
Credit Limit
Financial Security / Default
Insurance
Quarterly Assessment of Parent
Credit Limit
Financial Security / Default
Insurance
Credit Limitn/a
Financial Assessment
Chargeback Insurance
Parent Guarantee
25NewGen ISS
NewGen ISS
IATA EasyPay – Account Opening
Acco
un
t O
pe
nin
g
Agent open an EasyPayaccount online
Fu
nd
ing
Agent funds the EasyPayaccount E
P N
um
be
r G
en
era
tio
n
Agent receives EasyPay number from the system
www.iata.org/easypay
Type www.iata.org/easypay and press Enter button
26NewGen ISS
NewGen ISS
IATA EasyPay – Ticket IssuanceT
icket R
equest
Agent requests to issue a ticket through a GDS, selecting form of payment “EP” and using its EasyPaynumber
Au
tho
riza
tio
n R
eq
ue
st
GDS requests payment authorization to EasyPaysystem A
uth
orization If sufficient
funds in Easypay account, amount is blocked and authorization is generated
Tic
ket Is
suance
GDS receives authorization and issues the airline ticket and receipt
27NewGen ISS
NewGen ISS
IATA EasyPay – Airline Settlement and ReconciliationG
DS
RE
T r
ep
ort
ing GDS reports
to IATA all tickets issued during the day
Ca
lcu
latio
n &
Re
po
rtin
g IATA DPCs calculate amounts to be transferred to each airline and issue HOT files
Se
ttle
me
nt
IATA transfers EasyPay amounts to each airline
Reco
ncili
atio
n
Airline reconciles EasyPaypayments with tickets issued
28NewGen ISS
NewGen ISS
IATA EasyPay – Technical Validation & Geographic coverage
4 technical proofs of concept of IATA EasyPay online model
executed in different countries (UK, Austria, UAE, Chile)
IATA EasyPay successfully tested with several providers,
currencies, GDS, Airlines and Travel Agents
Payment Methods Working Group (airline payment experts)
reviewed and validated the EasyPay model
Comprehensive Geographic coverage as a result of consultation
with key providers
29NewGen ISS
Objectives
Reduce default losses for Airlines while facilitating Agent access to Financial
Securities
A Global Insurance Solution
Better addresses the needs of Agents & Airlines:
Strong, flexible & reliable coverage for Carriers
Lower costs & increased flexibility for Agents
Alternative to Bank Guarantees and other acceptable Financial Securities Agent
choice on which to obtain
Can easily be adjusted by Agents in a Credit Limit environment
Aon & Marsh, two leading global insurance brokers will engage insurers to
implement the solution
NewGen ISS
Global Default Insurance Solution
30NewGen ISS
NewGen ISS
Global Default Insurance
Key Principles:
A standardized global default insurance policy that will be brokered to top credit insurance
companies and made available for travel agents to be listed under on a voluntary basis.
A Financial Security type additional to those currently acceptable under Resolution 850p:
IATA will establish a framework for brokers and insurers to introduce this additional
financial security letting the market play
One single policy for which any insurance company may bid
Insurance will be provided by global credit insurers, not IATA
IATA will not participate in the collection of premiums
Global Insurance will not replace DIPs
31NewGen ISS
Global Default Insurance
Benefits
Increases certainty of outcome in event of a travel agent
default or insolvency
Improves claims settlements, thus reducing unrecovered
defaults
Supports sales growth
32NewGen ISS
Global Default Insurance
Benefits
Lower cost than other acceptable Financial Security types
Allows Agents to obtain a higher cover in a short time frame,
and to increase their Credit Limit as applicable
Supports growth in ticket sales
33NewGen ISS
Local consultation underway to gather agent and airline feedback
PAConf approval of NewGen ISS framework in October 2015
Adoption by PAConf of new Resolutions targeted for 2016
Go-live expected in 2017
NewGen ISS
NewGen ISS - Your Feedback
34NewGen ISS
Thank you!
For More Information
Email: [email protected]
Website: www.iata.org/newgeniss