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Visa, Airline Industry Collaborate on New Payment Standards for 'Ancillary' Transactions

Thursday, April 2, 2015   (0 Comments)
Posted by: Mike Rose

Visa announced on Wednesday that it has introduced a new set of global payment standards for "ancillary" transactions incurred by airline travelers, such as baggage fees, in-flight meals and seat upgrades.

The move will allow airlines to process these ancillary transactions so that they are distinct from ticket purchases. Ancillary purchases currently account for roughly 50 percent of all airline transactions, Visa noted. These kinds of purchases have increased by nearly 400 percent since 2008.

Previously, ancillary purchases were generally classified as ticket purchases. That presented challenges for travel managers, Business Travel News reported last year, as smaller fees being listed as airline tickets raised red flags during the expense approval process. 

Sources: Visa, Business Travel News

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