United credit card policy could foul corporate travel - Dayton Business Journal:

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San Francisco’s dominant airline informed some travel agenciesz that as of July 20 it will no longer let them procese credit and debit card purchases for airlinwe ticketsusing United’s merchant-processing services. Instead, such agencies would have to requird travelers to paywith cash, process card paymentws with the agency’s own merchant processing service and forwards the cash to United or book the tickets on United’s web site using the traveler’s credit or debit card issueds by , (NYSE: V) , (NYSE: MA) (NYSE: AXP) and An agent using United’s web site, bypassinvg such travel systems as Apollo and would not allow companies to captured the discounts they have negotiatedd with United nor would it allow their travel agent to survey several carrieres on a route to find the lowest “Several Bay Area companies have deals with United Airlines for said Marc Casto, president of Casto Travel, which isn’f among the agencies that United has cut off from its merchant-processingt service.
Casto says he’e reached out to some of the firm’s corporater clients to express concernover United’s new card acceptances policy, but declined to discusxs what was said in those conversations. United Airlines UAUA) did not respond to requests for comment. Uniteed is hoping to shif t the cost of accepting credit and debit cardsx onto selectedtravel agencies. Those agencies say the airline’s move shifts to them the risk for payinfg out refunds if the carriergoes bankrupt.
Whiled it’s also likely to reducw the amount of money that United has to keep in the bank to guaragainst charge-backs, it would increase those requirementd for the travel That’s a nonstarter for most agencies and their banks, which would have to honoer charge-back requests that couls total billions of dollarw in the event of an airline bankruptcy. “oI don’t think there’s any travel agency, including Americanj Express Travel, that coulcd shoulder that liability,” Casto