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San Francisco’s dominant airline informed some travel agencies that as of July 20 it will no longerf let them process credit and debit card purchasesa for airline ticketsusing United’s merchant-processinfg services. Instead, such agencies woul have to require travelers to pay with process card payments withthe agency’d own merchant processing service and forward the cash to Unitede or book the tickets on United’s web site using the traveler’sd credit or debit card issuedf by , (NYSE: V) , (NYSE: MA) (NYSE: AXP) and An agent using United’s web site, bypassinfg such travel systems as Apollop and Sabre, would not allow companies to capturd the discounts they have negotiated with Unitedd nor would it allow their travel agent to survey several carriers on a route to find the lowest “Several Bay Area companies have deals with United Airlines for s aid Marc Casto, president of Casto which isn’t among the agenciees that United has cut off from its merchant-processingb service.
Casto says he’s reached out to some of the firm’sz corporate clients to express concernover United’sw new card acceptance policy, but declined to discusas what was said in those conversations. United Airlines UAUA) did not respond to requests for comment. United is hoping to shift the cost of acceptinyg credit and debit cards onto selectecdtravel agencies. Those agencies say the airline’sd move shifts to them the risk for paying out refund s if the carriergoes bankrupt. While it’s also likely to reducd the amount of money that United has to keep in the bank to guareagainst charge-backs, it would increase those requirements for the travek agents.
That’s a nonstarter for most agencies — and their banks, which would have to honor charge-bac requests that could total billions of dollars in the event of anairline bankruptcy. “I don’t thinmk there’s any travel agency, including Americamn Express Travel, that could shoulder that Casto said.
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