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Industry Agents’ Handbook

 
 
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Table of Contents 
 
Table of Contents ................................................................................................................................... 2 
Terms of Use ............................................................................................................................................ 9 
Data Usage Statement .........................................................................................................................11 
Section 1: Airline Participants in Agent's Standard Ticket & Area Settlement Plan ...12 
ARC Participating Airlines ............................................................................................................................ 12 
Section 2: ARC Financial Instruments...........................................................................................13 
General Information .................................................................................................................................... 13 
Types of Financial Instruments: ARC Bond, Irrevocable Letter of Credit and Cash Security Deposit ......... 13 
New Agency and CTD ............................................................................................................................... 13 
Branches................................................................................................................................................... 13 
Submission of Forms ................................................................................................................................ 14 
Change of Ownership involving Non-Accredited Entity ........................................................................... 14 
Other Ownership Changes ....................................................................................................................... 14 
Multiple Financial Instruments ................................................................................................................ 14 
Where to Obtain the Financial Instrument Forms ................................................................................... 14 
Calculations and Maintenance .................................................................................................................... 15 
Computing the Amount Required for Your Bond, Irrevocable Letter of Credit or Cash Security Deposit 15 
Bond/LOC/CSD Coverage ......................................................................................................................... 16 
Periodic Adjustment of the Bond, LOC or CSD Amount ........................................................................... 16 
Bond Cancellation .................................................................................................................................... 17 
Important Aspects of Bonds, Letters of Credit and Cash Deposits ............................................................. 17 
Effective Date: BOND ............................................................................................................................... 17 
Effective Date: LETTER OF CREDIT ........................................................................................................... 17 
Effective Date: CASH SECURITY DEPOSIT ................................................................................................. 17 
Cancellation and Effect: BOND ................................................................................................................ 17 
Cancellation and Effect: LETTER OF CREDIT............................................................................................. 18 
Cancellation: CASH SECURITY DEPOSIT ................................................................................................... 18 
Replacements and Substitutions of all Three Types of Instruments ........................................................... 18 
Replacement of a Bond with Another Bond ............................................................................................ 18 
Replacement of a Bond with a Letter of Credit........................................................................................ 18 
Replacement of Letter of Credit with another Letter of Credit ................................................................ 19 
Replacement of a Bond with a Cash Security Deposit ............................................................................. 19 
Replacement of a Letter of Credit with a Cash Security Deposit ............................................................. 19 
Replacement of Letter of Credit with a Bond........................................................................................... 19 
Replacement of a Cash Security Deposit with a Bond ............................................................................. 19 
Voluntary Cancellation of the Reporting Agreement .............................................................................. 20 
Effects of Cancellation of either a Bond or a Letter of Credit .................................................................. 20 
Reclassification of an Agent to Verified Travel Consultant Status .......................................................... 21 
Tips ............................................................................................................................................................... 21 

 
 
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Section 3: My ARC .................................................................................................................................23 
What Is My ARC? ......................................................................................................................................... 23 
My ARC Security Features............................................................................................................................ 23 
Account Creation ......................................................................................................................................... 23 
User Administration ..................................................................................................................................... 24 
My ARC Primary Administer - Roles and Responsibilities ........................................................................... 24 
Useful Communication Resources ............................................................................................................... 24 
Online HELP .............................................................................................................................................. 24 
ARC's Web Page ....................................................................................................................................... 24 
Contact Us ................................................................................................................................................ 25 
Section 4: Ticketing .............................................................................................................................26 
Reservations ................................................................................................................................................ 26 
Itinerary Information ............................................................................................................................... 26 
Passenger Information ............................................................................................................................. 26 
Recommended Reservations Practices .................................................................................................... 26 
Passenger Identification .............................................................................................................................. 27 
Transportation Security Administration (TSA) ......................................................................................... 27 
Secure Flight Program.............................................................................................................................. 27 
US State-Issued Driver’s Licenses and Identification Cards ..................................................................... 28 
Trusted Traveler Programs ...................................................................................................................... 28 
Ticketing Introduction.................................................................................................................................. 29 
Issuance and Acceptance of Passenger Tickets and Documents ................................................................ 30 
Selection of the Ticketing Airline.............................................................................................................. 32 
Code-Share Services ................................................................................................................................. 33 
Section 5: Interactive Agent Reporting ........................................................................................34 
What is Interactive Agent Reporting? ......................................................................................................... 34 
IAR Security Features ................................................................................................................................... 34 
Data Security - Credit Card Masking ........................................................................................................ 34 
How is an ARC Report Processed? ............................................................................................................... 35 
How ARC Communicates with You .............................................................................................................. 35 
Travel Agent Communication (TAC) ......................................................................................................... 36 
ARC's Web Page ....................................................................................................................................... 36 
ARC's Customer Care Center (CCC) .......................................................................................................... 36 
ARC Status Dashboard ............................................................................................................................. 36 
IAR Resources ........................................................................................................................................... 36 
Online IAR HELP ....................................................................................................................................... 36 
Error Message Display ............................................................................................................................. 37 
IAR Back-Office System File Reconciliation .............................................................................................. 37 
ARC Document Types and Their Usage in IAR ............................................................................................. 37 
Electronic Ticket ....................................................................................................................................... 37 
Electronic Miscellaneous Document (EMD) ............................................................................................. 37 
ARC Automated Miscellaneous Charges Order (MCO) ............................................................................ 38 
ARC Pay (formerly TASF) .......................................................................................................................... 38 
Other ARC Support Documents ................................................................................................................ 39 
Carrier Documents ....................................................................................................................................... 40 
Carrier Support Documents ..................................................................................................................... 40 
Type A Certificates ................................................................................................................................... 40 

 
 
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Type B Vouchers ....................................................................................................................................... 41 
Airline Adjustment Documents ................................................................................................................ 41 
Information on Voiding Transactions .......................................................................................................... 42 
When Voiding a Credit Card Sale ............................................................................................................. 42 
GDS Voids ................................................................................................................................................. 43 
IAR Voids .................................................................................................................................................. 43 
Daily Reconciliation of your IAR Sales Report ............................................................................................. 44 
Error Correction........................................................................................................................................ 44 
Authorizing and Submitting the Sales Report .......................................................................................... 44 
Recalling a Submitted Sales Report ......................................................................................................... 45 
Authorizing an IAR "No Sales" Report...................................................................................................... 45 
Exception Transactions ............................................................................................................................ 45 
Document Storage and Retention Procedures ............................................................................................ 46 
Sales Report Storage and Retention Requirements ................................................................................. 47 
Accessing IAR - Getting Started ................................................................................................................... 47 
IAR Home Page Screen ............................................................................................................................. 48 
Online Help ............................................................................................................................................... 48 
Closing IAR ............................................................................................................................................... 49 
IAR Administration ....................................................................................................................................... 49 
Controlling Access to IAR ......................................................................................................................... 49 
Controlling User Rights and Access within IAR ........................................................................................ 51 
Search and View User Lists ...................................................................................................................... 51 
Update a User Profile ............................................................................................................................... 52 
Mask Credit Card Numbers by User ......................................................................................................... 52 
Browsing a User Role's Rights .................................................................................................................. 52 
Move ARC# ............................................................................................................................................... 52 
Viewing Users Assigned a Specific Role ................................................................................................... 52 
Controlling Sales Report Access - ARC# Access Tab ................................................................................. 52 
Search and View Lists for a Group ........................................................................................................... 53 
Add a New ARC# Access Group ................................................................................................................ 53 
Edit an ARC# Access Group Profile ........................................................................................................... 53 
Delete an ARC# Access Group Profile....................................................................................................... 54 
Newly Accredited ARC Locations ............................................................................................................. 54 
Inactivated ARC# Groups ......................................................................................................................... 54 
Navigating in IAR .......................................................................................................................................... 54 
What is Navigation? ................................................................................................................................ 54 
Screen and Transaction Navigation ......................................................................................................... 55 
Internet Browsers and Browser Navigation ............................................................................................. 55 
General Screen Navigation Functionality ................................................................................................ 56 
Global Headers......................................................................................................................................... 59 
Global Footers .......................................................................................................................................... 59 
Navigation Buttons .................................................................................................................................. 59 
List Navigation ............................................................................................................................................. 60 
IAR Home Page List Type Drop Down Boxes ............................................................................................ 61 
Working with Other Sales Reports within Your Organization ................................................................. 63 
Move to another Sales Report Period ...................................................................................................... 63 
Move to another ARC location’s Sales Report (Move ARC#) ................................................................... 64 
Move to a Different Custom ARC# Group ................................................................................................ 65 

 
 
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Sales Report Tabs ......................................................................................................................................... 66 
List Tab ..................................................................................................................................................... 66 
Document Processing .................................................................................................................................. 82 
Viewing, Modifying and Adding Transactions in the Sales Report .......................................................... 82 
Screen Navigation .................................................................................................................................... 82 
View Only Tab - Viewing a Transaction ....................................................................................................... 82 
List Transaction Detail ............................................................................................................................. 83 
Last Modified ........................................................................................................................................... 84 
Find Old/Used Ticket ................................................................................................................................ 85 
Modifying a Sales Transaction ..................................................................................................................... 87 
Modifying a Commission ......................................................................................................................... 88 
Manually Adding a Transaction ................................................................................................................... 91 
Financial Details Screen ........................................................................................................................... 92 
Itinerary/Endorsements Screen ............................................................................................................... 93 
Manually Adding a Miscellaneous Charges Order (MCO) document ...................................................... 94 
Manually Adding an Agent Automated Deduction.................................................................................. 95 
Manually Adding an Adjustment Memo .................................................................................................. 96 
Manually Adding a Debit Memo or TRS Memo ....................................................................................... 96 
Manually Adding a Credit Memo ............................................................................................................. 97 
Manually Adding a Recall Commission Statement .................................................................................. 98 
Type A Certificates Screen ........................................................................................................................ 99 
Adding Other Documents .......................................................................................................................... 101 
Adding a Document not received from a GDS ....................................................................................... 101 
Adding a Government Transportation Request (GTR) - Payable to Agent ............................................ 101 
Adding a Government Transportation Request (GTR) - Payable to Ticketing Airline ............................ 102 
Adding a Duplicate Ticket Number ........................................................................................................ 102 
Refunding a Transaction ............................................................................................................................ 103 
Rules for Refunding ................................................................................................................................ 103 
Partial Refund Entry ............................................................................................................................... 105 
Refund Application ................................................................................................................................. 105 
Refunding a Split Payment Exchange Transaction ................................................................................ 106 
Exchanging a Transaction .......................................................................................................................... 108 
Rules for Exchanging .............................................................................................................................. 109 
Full Exchange - Old Document ............................................................................................................... 109 
Full Exchange - New Document ............................................................................................................. 113 
Remove a Document from an Exchange ................................................................................................ 116 
Partial Exchange .................................................................................................................................... 117 
Exchanges with Non-Refundable Residual Value .................................................................................. 117 
Split Payment Exchange Transactions ................................................................................................... 119 
Voiding a Transaction ................................................................................................................................ 120 
Voiding a Transaction in the Sales Report on the Sales Report Screen ................................................. 120 
Void Reversal of a Transaction on the Sales Report .............................................................................. 122 
Voiding a Transaction in the Sales Report using the Void Tab .............................................................. 122 
IAR Void/Modify Window ...................................................................................................................... 123 
Unapplied Voids (ARC Automated Refund)............................................................................................ 124 
Preparing Your Sales Report for Authorization ......................................................................................... 127 
Viewing Sales Report Totals ................................................................................................................... 127 
Viewing a Sales Report with Transaction(s) in Error.............................................................................. 128 

 
 
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Viewing Authorized Sales Reports ......................................................................................................... 128 
Viewing Unsubmitted Sales Reports ...................................................................................................... 129 
Viewing Sales Reports with No Activity ................................................................................................. 129 
Viewing Sales Reports Counts - List Counts ........................................................................................... 129 
Viewing Sales Reports Counts - Total Counts ........................................................................................ 130 
Viewing the Financial Details of an Individual Sales Report .................................................................. 130 
Viewing the Financial Details of Multiple Sales Reports........................................................................ 131 
Submitting a Sales Report .......................................................................................................................... 134 
Authorize/Submit Confirmation of Submission Screen .......................................................................... 135 
Reversing an Authorized and Submitted Sales Report .............................................................................. 135 
Reference and Glossary Information ......................................................................................................... 137 
IAR Screen Names and Descriptions ...................................................................................................... 137 
IAR Field Names and Definitions ............................................................................................................ 138 
Section 6: Payment Card Acceptance Procedures, Chargeback Management 
Procedures, and Best Practices .................................................................................................... 172 
Payment Card Acceptance Procedures ..................................................................................................... 172 
Types of Payment Cards ............................................................................................................................. 173 
Airline Payment Acceptance Chart ............................................................................................................ 173 
Chargeback Management Procedures ...................................................................................................... 174 
How to Respond to a Chargeback .......................................................................................................... 174 
Best Practices for Card Acceptance and Risk Management ...................................................................... 175 
Validating the Cardholder – Card-Not-Present ...................................................................................... 175 
Address Verification Service (AVS) ......................................................................................................... 176 
Card Verification Number – Unembossed Number on Card .................................................................. 176 
Enhanced Payment Card Authorization ................................................................................................. 177 
3-D Secure — On-line fraud management tools (Verified by Visa, MasterCard Identity Check, and 
Discover ProtectBuy) .............................................................................................................................. 178 
Transaction Evaluation and Scoring Tools ............................................................................................. 178 
Risk Management for Corporate Relationships ..................................................................................... 179 
Validating the Cardholder – Card-Present ............................................................................................. 179 
Guide to the Preparation of the Universal Credit Card Charge Form .................................................... 180 
Other Tips for Detecting Fraud .................................................................................................................. 180 
Disclosure of the Terms and Conditions of the Sale .................................................................................. 182 
Chargeback Management Best Practices .................................................................................................. 182 
Friendly Fraud (i.e., Chargeback Fraud) versus True Fraud ................................................................... 182 
Responding to a chargeback .................................................................................................................. 183 
Chargeback Remedy .............................................................................................................................. 183 
Compelling Evidence .............................................................................................................................. 183 
Agency Chargeback Response Best Practices ........................................................................................ 184 
Payment Card Industry Data Security Standards ...................................................................................... 185 
ARC Security Standards and Compliance with PCI- DDS requirements .................................................... 185 
Conclusion .................................................................................................................................................. 186 
Section 7: Reporting and Remitting Irregularities and How to Correct Them ........... 187 
Common Remitting and Reporting Problems............................................................................................ 187 
Common Corrective Actions for Remitting Problems ............................................................................... 188 
Common Corrective Actions for Sales Reporting Problems with Tickets .................................................. 188 
General Comments .................................................................................................................................... 188 

 
 
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Section 8: Taxes, Fees, and Charges ............................................................................................ 190 
Overview .................................................................................................................................................... 190 
Codes for United States Taxes, Fees, and Charges .................................................................................... 191 
Section 9: Travel Industry Related Laws and Regulations ................................................. 192 
DOT requirements on the Display of Carrier Operating Information (Code-Share display) ..................... 192 
Section 10: ARC Traffic Document Overview .......................................................................... 193 
ARC Documents - Accountable and Non-Accountable Forms ................................................................... 193 
Standard Accountable ARC Traffic Documents ...................................................................................... 193 
Standard Non-Accountable Forms ......................................................................................................... 194 
Destroying Unused ATB Paper Traffic Documents .................................................................................... 194 
Preparing the "Affidavit of Traffic Document and Airline Identification Plate Destruction" ................. 194 
Methods for Destroying Ticket Stock ..................................................................................................... 194 
Methods for Destroying Airline Identification Plates............................................................................. 195 
Section 11: ARC Specialist Training and Certification Program ...................................... 196 
Overview .................................................................................................................................................... 196 
Purpose ...................................................................................................................................................... 196 
ARC Specialist Continuing Education ......................................................................................................... 196 
Curriculum ................................................................................................................................................. 196 
Training Format ......................................................................................................................................... 197 
Cost ............................................................................................................................................................ 197 
Refund Policy.......................................................................................................................................... 197 
No Show Policy ....................................................................................................................................... 198 
Transfer Policy........................................................................................................................................ 198 
Schedule and Registration ......................................................................................................................... 198 
Revocation of Certification ........................................................................................................................ 198 
Section 12: Fraud Prevention Program .................................................................................... 199 
Other Fraud Prevention Programs Audit Program .................................................................................... 199 
Recommended Computer Security Practices ............................................................................................ 200 
Training Requirement ................................................................................................................................ 201 
Section 13: Independent Arbitration Panel Rules of Procedure ..................................... 203 
Introduction ............................................................................................................................................... 203 
1.  The Travel Agent Arbiter Program, Inc. ............................................................................................. 203 
2.  The Panel ........................................................................................................................................... 203 
3.  The Parties ......................................................................................................................................... 203 
4.  Notice of Appeal ................................................................................................................................ 203 
5.  Appellant's Supporting Documentation ............................................................................................ 203 
6.  ARC's Answer ..................................................................................................................................... 204 
7.  Appellant's Reply ............................................................................................................................... 204 
8.  Hearings ............................................................................................................................................. 204 
9.  Stenographic Record .......................................................................................................................... 204 
10.  Decisions ........................................................................................................................................ 204 
11.  Filing and Service of Documents.................................................................................................... 205 
12.  Prohibited Communications .......................................................................................................... 205 
13.  Retention and Release of Panel Records ....................................................................................... 205 
14.  Costs ............................................................................................................................................... 205 

 
 
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Attachment 1 - Certificate of Incorporation of Airlines Reporting Corporation, a Closed Corporation ... 205 
Section 14: Office of Travel Agent Arbiter Rules of Practice and Procedure............... 207 
Guide to the Arbiter's Rules of Practice and Procedure ............................................................................ 207 
Rules of Practice and Procedure for ARA* Matters................................................................................... 210 
Section 1: Guiding Principles .................................................................................................................. 210 
Section 2: Jurisdiction............................................................................................................................. 211 
Section 3: Document Filing Requirements ............................................................................................. 212 
Section 4: Motions ................................................................................................................................. 216 
Section 5: TAA's Response to Documents .............................................................................................. 216 
Section 6: Hearings ................................................................................................................................ 217 
Section 7: Decisions ................................................................................................................................ 219 
Section 8: Standards of Conduct ............................................................................................................ 221 
Section 9: Amendment of Rules ............................................................................................................. 221 
Section 10: Access to and Retention of Records and Request to Expunge Identifying Information ...... 221 
Section 11: Remedial Actions ................................................................................................................. 222 
Section 12: Precedent ............................................................................................................................ 222 
Section 13: Expedited Proceedings ........................................................................................................ 222 
Rules of Practice and Procedure for an ARC Pay Travel Agent Service Fee Matter .................................. 223 
Section 1: Guiding Principles and Jurisdiction ........................................................................................ 223 
Section 2: Petitions, Responses, Hearing and Decision.......................................................................... 223 
Section A:  Notices ............................................................................................................................. 226 
Section B: Security Guidelines for ARC Traffic Documents .................................................. 227 
Section C: Retention and Inspection of Agent Records ........................................................ 228 
Section D: Financial Instrument .................................................................................................. 229 
Section E: Carrier Participants in Agent's Standard Ticket & ARC Settlement Plan .... 231 
Section F: Examples of Breaches by Agent................................................................................. 232 
Section G: Personal Guaranty of Payment and Performance ............................................ 233 
Section H: Use of ARC Online Services and Tools................................................................... 236 
Section I: Examples of Change in Ownership .......................................................................... 238 
Section J: Instructions for Temporary Closure ....................................................................... 240 
Section K: Reports and Settlements ........................................................................................... 241 
Section L: Variable Remittance .................................................................................................... 244 
Section M: Administrative and Compensatory Fees ............................................................. 245 
Section N: Associate Branch Supplementary Agreement ...................................................... 247 
Section O: Additional Office Types .............................................................................................. 254 
 
 
 
   

The Industry Agents' Handbook (also called Handbook or simply IAH) is published and maintained by ARC on its

Corporate website at www2.arccorp.com. The Handbook includes general information, operational requirements

from ARC and rules and instructions supplied by Carriers (all referred to here as Content). The Handbook provides

information about ARC and the Carriers that will help you operate your business and comply with industry

instructions and rules. We recommend that you and your staff become familiar with all Content in the Handbook.

If you have questions about the Handbook or its Contents, please contact ARC's Customer Care Center at +1

855-816-8003. Verified Travel Consultants (VTCs), which do not issue or report tickets, have a separate

Handbook.

ARC has several different classifications for ARC-Accredited Entities, including:

• ARC-Accredited Agents (also called Ticket Reporting Agents or TRAs)

• Corporate Travel Departments (CTDS)

• Sovereign Entity Agents (SEAs)

• Sovereign Entity Corporate Travel Departments (SECTDs)

For ease of use, unless we note otherwise, the terms "ARC-Accredited Entity," "ARC-accredited Agent," and/or

"Agent" may each be used as an "umbrella" term throughout the Handbook to refer not only to TRAs, but also to

CTDs, SEAs and SECTDs.

Also, unless noted otherwise in the IAH, the terms "Agent Reporting Agreement,” "ARA” and “Agreement" are used

as umbrella terms for the following:

• Agent Reporting Agreement (ARA)

• Corporate Travel Department Reporting Agreement (CTDRA)

• Sovereign Entity Agent Reporting Agreement (SEARA)

• Sovereign Entity Corporate Travel Department Reporting Agreement (SECTDRA)

These agreements are collectively referred to as "ARC Reporting Agreements" or "Reporting Agreements."

Please note that unless otherwise stated in the IAH, the Content published in the numbered sections of the

IAH applies to all ARC-Accredited Entities stated above.

The sections of the IAH designated with a letter (sections A-O) are associated with specified Reporting

Agreements. Therefore, you should refer to those sections that are applicable to your specific Reporting

Agreement.

Certain sections of the ARA/CTDRA and associated sections of the Handbook are not appropriate for review by the

JAB-ARA for competition law reasons, e.g., standards to accreditation. To the extent that such restrictions do not

apply, the ARA/CTDRA and associated Handbook sections are subject to review by the JAB-ARA and ARC's Board

of Directors.

The lettered sections for the SEARA and SECTDRA will not be published in the IAH but will be sent to those entities

separately.

The latest version of the IAH on ARC's website is incorporated by reference and part of the Reporting

Agreement that applies to your ARC-accredited Entity.

Links to third-party websites are controlled by parties other than ARC. ARC does not operate or control any of the

information, products or services on such websites and makes no warranties or representations about such sites.

The links are provided for your convenience only and ARC is not responsible for any information on the linked

third-party site or the linked site itself. Your access to and use of any linked third-party site is solely at your own

risk.

ARC may amend these Terms of Use at any time. The amended terms will be posted on ARC’s website and/or

on the IAH website and will be effective on the posting date.

The Handbook and IAH Content are the property of ARC and may not be copied, reproduced or used in any way

for commercial purposes without the prior written consent of an authorized ARC representative.

Data Usage Statement

"ARC currently has the right to utilize the data it receives and processes via the Carrier Services Agreement (CSA),

which is the contract all participating Airlines have with ARC. This right has been a part of the CSA for many years

and is the basis on which ARC may include certain information in its data products.

In the interest of transparency, a similar provision has been made a part of the revised Agent Reporting

Agreement (ARA) to ensure a parallel understanding of ARC's rights in both the Carrier and Agent agreements.

The requirement of "lawful purpose" in that provision provides substantial protection to the agent that ARC will not

(other than in response to a subpoena or an official law enforcement request) produce any transactional data which

would reveal personally identifiable information (e.g., passenger name, credit card number) to any party which is

not connected to the actual ticket. ARC will not make available any information that could implicate antitrust or

competition concerns (e.g., Agency A would not receive Agency B's data). Because ARC products are based on

ticket-face information rather than PNR data, customer-specific data will not be included in ARC data products.

ARC's Board of Directors is committed to promoting competition in the provision of airline data intelligence products,

which have been available only from the global distribution systems (GDSs). ARC's data release policy protects

sensitive data that ARC processes, settles or is otherwise in receipt of, and allows ARC to continue to provide data

products that are competitive with the data products already available through GDSs and others. The data release

policy provides internal guidelines which have been reviewed and endorsed by privacy, SEC and antitrust counsel.

The essence of the policy is that ARC will only release transactional (i.e., ticket-face) data to entities that are

connected to, and necessary to the fulfillment of, the contract of carriage - specifically, Agent, Carrier and Credit

Card company (if not a cash sale), or to other parties when competition and privacy concerns are adequately met.

Any release to a third party (e.g., a convention or visitors bureau) will be in aggregated form only - combined with

other data elements so no sensitive, ticket-face data can be identified.

These specific measures are intended to assure the agency community that data interests will be protected, and

that no data will be released in any unlawful manner.

Section 1: Airline Participants in Agent's Standard Ticket & Area

Settlement Plan

All ARC participating airlines have specified their method of agent appointment as General Concurrence or Specific

Appointment.

General Concurrence: The airline appoints all agents that appear on the ARC Agency List unless the airline notifies

both ARC and the agent of a decision not to appoint the agent or agency location.

Specific Appointment: The airline appoints specific agents appearing on the ARC Agency List and will do so by

delivering to each appointed agent a written Certificate of Appointment. Under these terms, ticketing using an airline's

validation code is not permissible unless done under the specific appointment of the validating airline. Agents seeking

a Certificate of Appointment from an airline should seek such a Certificate directly from the airline.

ARC Participating Airlines

ARC provides an Airline Participation tool which is a concise listing of each ARC participating airline, their policies

and processes related to ARC settlement (including payment acceptance, refund/exchange processing validity, IAR

ET Edifact support, and Airline Direct participation). To use, select an airline or scroll through the list and then view

the airline detail by clicking the + in the right corner of the display.

Information in this tool, as provided by each airline, includes:

• Airline name

• 2-character airline designator

• 3-digit airline numeric code

• Contact information

• Refund and Exchange processing validity

• ET EDIFACT support (formerly known as the Airline Ticket Matrix)

• Accepted Payments as provided by that Airline (formerly known as the Payment Acceptance chart)

As a courtesy to the industry, this list includes hyperlinks, as optionally provided by that Airline, which lead users to

the airline's website that may include ticketing, booking, refunds, exchange and schedule change rules. These

hyperlinks are subject to change without notice. ARC uses reasonable care in compiling and presenting the hyperlink,

but ARC gives no guarantee that the content behind the hyperlink is complete, accurate, error or virus free or up to

date. Please note, the information contained behind the hyperlink is not the sole source of information from the airline

and may not include all fare rules/ticketing rules. ARC recommends that travel agents read all information published

by the airline and all rules for the fares being booked and/or ticketed.

Section 2: ARC Financial Instruments

General Information

An Agent's

Financial Instrument (e.g., bond, letter of credit, cash security deposit) is used after the termination of the

Agent's ARA in order to cover, among other things, amounts owed by Agent to Carriers and ARC for Transactions

issued on ARC Traffic Documents supplied in trust to the Agent. This includes, but is not limited to, all amounts owed

for Transactions that have been used but not reported or paid for, amounts owed for dishonored drafts and amounts

owed as a result of the loss, misapplication, theft, forgery, or unlawful use of ARC Traffic Documents, unless the

Agent has been relieved of liability for such under the ARA. Please review Sections 30 and D of the applicable

Reporting Agreement for Financial Instrument requirements and procedures.

You must maintain a Financial Instrument in the form and amount required by ARC for the joint and several benefit of

Carriers and ARC. At no time will the Financial Instrument be less than $10,000 or more than $150,000 unless you

have Associate Branches or become subject to the additional operating requirements under Section 34 of the Agent

Reporting Agreement, the parties otherwise agree, or the Travel Agent Arbiter (TAA) so directs. See below section 14

Office of TAA Rules of Practice and Procedure. Entities with one or more Associate Branches have a minimum

instrument requirement of $70,000 with a maximum of $150,000. See Section N of the IAH for detailed instrument

instructions for this classification type. Please note, Associate Branch requirements are only applicable to Ticket

Reporting Agents (TRAs).

[NOTE: Sovereign Entity Agents (SEAs) and Sovereign Entity CTDs (SECTDs) should review their respective

Sovereign Entity Reporting Agreements for applicable information about Financial Instruments forms and procedures.

Please contact ARC's Accreditation Services Department at +1 855-816-8003 if you have any questions about

Sovereign Entity procedures or applications.]

Types of Financial Instruments: ARC Bond, Irrevocable Letter of Credit and Cash

Security Deposit

The ARC Bond is a performance or financial guaranty type of bond. The Irrevocable Letter of Credit (LOC) is a

guarantee of payment issued by a federally insured lending institution. The Cash Security Deposit (CSD) is a cash

deposit made directly to ARC as a voluntary alternative to a bond or a letter of credit. You can download forms from

the Accreditation Forms Catalog. You are not permitted to change the content of these forms.

New Agency and CTD

Any Entity desiring ARC accreditation must submit a Bond, LOC, or CSD in the minimum amount of $20,000 before

the agency may be included on the ARC Agency List. The amount of the Bond, LOC, or CSD may not be reduced

below $20,000 until the Agent has been included on the List for two years, at which time, the amount may be

decreased to a minimum of $10,000, subject to the formula described in section 30 of the ARA and section D of the

IAH.

Branches

Unless applying for an Associate Branch, an Agent on the ARC Agency List who files an application for an additional

Branch is not required to submit an additional ARC Financial Instrument because the branch is covered by the

Financial Instrument held by the home office. To receive ARC approval for an additional Branch however, the Agent

must have the coverage as required under Sections 30 and D of the Agent Reporting Agreement. The combined cash

sales from all the Agents' Locations determines the amount required for the financial instrument.

Submission of Forms

ARC must have signed ORIGINALS of the Bond, the LOC, or the LOC Certification letter. Bond riders and LOC

amendments must also be submitted IN THE ORIGINAL FORM. All bonds and bond riders must be accompanied by

a valid power of attorney and all letters of credit by a certification letter.

Change of Ownership involving Non-Accredited Entity

Non-accredited entities seeking approval for the acquisition of an ARC-Accredited Agency * (Type 5) must provide a

NEW Financial Instrument reflecting the legal name of the proposed new Entity. The Financial Instrument should be

submitted at the time the application is submitted or as soon as possible after submission of the application. An

application is not complete until all required information, including a valid Financial Instrument, is received. The

amount of the Financial Instrument will not be less than the amount of the Financial Instrument held by the

transferring Agent prior to the approval of the ownership change OR $20,000, whichever amount is greater. This

requirement will be in effect for two years from the date of the approval of the application unless the Financial

Instrument is required to be higher as provided in the Reporting Agreement. If the acquisition includes an Associate

Branch the amount of the Financial Instrument will be as stated in Sections D and N of the IAH.

[*Note: CTDs should review Section 16 of the CTDRA for applicable information about CTD Ownership Changes and

Transfers]

Other Ownership Changes

In other ownership changes (Types 1, 2, 3 and 4), the amount of the Financial Instrument will not be less than the

amount required of the Agent prior to approval of the ownership change. In a Type 3 ownership change application,

the Agent must provide a rider, amendment or new Financial Instrument, as applicable, reflecting the new legal

name.

Multiple Financial Instruments

You may provide the required Financial Instrument coverage through more than one Bond or LOC, or a combination

of Cash Security Deposit Agreement, Bond or LOC. The acceptance of multiple Financial Instruments and the order

of claims or draws on such Financial Instruments will be solely at ARC's discretion.

Where to Obtain the Financial Instrument Forms

The United States Treasury Issues Circular 570, "Surety Companies Acceptable on Federal Bonds." You may access

the Circular 570 at U.S. Treasury Circular 570. Unless otherwise noted, any surety on the current revision of Circular

570 is acceptable to ARC.

ARC will accept an LOC using the ARC required format and language (See Forms Catalog) issued by any federally

insured lending institution (FDIC or NCUA) or, at ARC's discretion, a state-chartered lending institution. All Letters of

Credit MUST be accompanied by a certification letter.

Go to the Forms Catalog, and then click on Forms 300-309. The Cash Security Deposit (CSD) application is in

writeable PDF format. This format enables you to complete the application online, print it, and then save the

application to your PC. Alternatively, you can save the application to your PC and then complete and print it. The

CSD application is a one-time process that does not require any additional documents (financial statement, credit

report) or annual renewals to complete.

Calculations and Maintenance

Computing the Amount Required for Your Bond, Irrevocable Letter of Credit or Cash Security Deposit

The Agent Reporting Agreement requires that a bond, letter of credit (LOC), or Cash Security Deposit (CSD) be in an

amount at least equal to the average monthly gross cash sales as determined for the 12-month period ending on the

last sales period ending date of the fifth month prior to the anniversary date of the Agent's bond, LOC, or CSD.

Unless otherwise required under the Agreement or by the TAA, the Financial Instrument amount determined may not

be lower than the prescribed minimum-either $10,000 or $20,000 as applicable, and need not exceed the prescribed

maximum, $150,000.

Alternatives to the cash sale standard remittance schedule, styled Variable Remittance options are described in

Section L of the IAH. The only Variable Remittance option, which is included in the Financial Instrument calculation, is

the Variable Payment with Consolidated Check (PC) option. Therefore, when verifying your average monthly net cash

remittance, you must include PC sales, if applicable, with the net remittance for regular cash sales. If you do not have

the PC option, you can determine the monthly average by simply using the amount shown for net remittance on your

weekly sales summary.

The following chart may help you ascertain the applicable net remittance period based upon the anniversary month of

your bond, LOC or CSD:

Anniversary

Calculation Date

90 Day Notice Period

Jan. 2023

10/22

09/21-08/22

Feb 2023

11/22

10/21-09/22

Mar 2023

12/22

11/21-10/22

Apr 2023

01/23

12/21-11/22

May 2023

02/23

01/22-12/22

Jun 2023

03/23

02/22-01/23

Jul 2023

04/23

03/22-02/23

Aug 2023

05/23

04/22-03/23

Sept 2023

06/23

05/22-04/23

Oct 2023

07/23

06/22-05/23

Nov 2023

08/23

07/22-06/23

Anniversary

Calculation Date

90 Day Notice Period

Dec 2023

09/23

08/22-07/23

For example, if your instrument's anniversary date is in July 2023, you would use the cash sales during the entire

month of March for the preceding year through the entire month of February of the current year (March 2022 to

February 2023) to compute the bondable amount.

If, for any reason when computing the required amount, the Agent has fewer than twelve months of sales, the amount

shall be at least equal to the average monthly gross cash sales of the preceding months ending on the last sales

period ending date of the fifth month prior to the anniversary date of the Agent's bond, LOC or CSD. As noted above,

such amount must be between the minimum and maximum provided.

Bond/LOC/CSD Coverage

If the agent has one or more branch or other locations, the bond, LOC or CSD must cover all locations, and

computation must be based on the total net cash remittance of all locations.

Periodic Adjustment of the Bond, LOC or CSD Amount

Each Agent must maintain a bond, LOC or CSD consistent with the computation described in the ARA. Accordingly,

any required adjustment of the bond or LOC to provide coverage in excess of the minimum must be made each time

the Financial Instrument is renewed (e.g., anniversary date), reinstated or replaced. This means, the Agent must

review its Financial Instrument coverage at least once each year, unless ARC, in its sole discretion, determines to

temporarily suspend the annual review (and adjustment) due to unforeseen events (e.g., global emergency) or other

similar exigencies. Following suspension for these reasons, any required increase should be provided within 20

business days of ARC’s notice.

Another example of an exception to the annual review is if the Agent submits an application for a branch office. In that

case, the Agent's bond, LOC or CSD must be in the proper form and amount before ARC can approve the

application.

Unless otherwise required by the Agreement or provided in subsection, ARC will monitor Financial Instrument

amounts at minimum once a year and will advise agents 90 days in advance of the anniversary date of the Financial

Instrument of amount of any increase required.

Except as noted above or in the Agreement, Agents are required to make the necessary adjustments to their bond,

LOC or CSD on or before the anniversary date, or when a Bond or LOC is reinstated or replaced.

The consequence of a failure to maintain proper Financial Instrument coverage in the required form and amount is

governed by Sections 30 of the Agent Reporting Agreement, and section D of the IAH.

Notwithstanding anything in the foregoing, ARC shall have the right to adjust the amount of the Financial Amount

required at any time upon 30 days written notice to the Agent. Such increase will be based on, among other things,

increases in number or value of cash sales of ARC Traffic Documents issued, or changes in business

model/structure.

Bond Cancellation

It is extremely important to maintain a Financial Instrument in the required form and amount at all times. Failure to

maintain a Bond, LOC or CSD will result in the inhibition of your ticketing, if a proper replacement Financial

Instrument is not received, and the termination of your ARC Agreement (see Section 30 of the ARA and Section D of

the IAH).

Important Aspects of Bonds, Letters of Credit and Cash Deposits

This section outlines the three types of Financial Instruments and how they work. This information may be useful if

the Agent has reason to substitute one type of Financial Instrument for another type.

Effective Date: BOND

A bond has an effective date outlined in the first paragraph. This date is so framed that it clearly establishes the

precise starting point at which the Surety assumes responsibility and liability. Any debt incurred prior to the stated

effective date of a bond would not be covered by that bond, even though the discovery of the debt was made

subsequent to the bond's effective date.

Effective Date: LETTER OF CREDIT

A letter of credit also provides space for the insertion of a date. In this case, however, the date serves no more

purpose than merely establishing the date on which the letter of credit was issued. Upon issuance, the issuer

immediately assumes full responsibility up to the limit of the instrument for any debt of the Agent to ARC under the

Agreement, regardless of when the debt was incurred. This is the first major difference between the Bond and LOC.

Effective Date: CASH SECURITY DEPOSIT

The Cash Security Deposit (CSD) effective date is established by the issue date of the cashier's or certified funds

check that the agent or applicant provides with its CSD application and agreement. This date is also the anniversary

date which governs the computation period used to determine the amount of coverage each agent must maintain

(see Section 30 of the Agreement).

Cancellation and Effect: BOND

The bond is continuous and does not expire on its own terms. A bond may be canceled only upon a prior written 30-

day notice from the Surety to ARC. Even an Agent's failure to pay the bond premium does not, in and of itself, cancel

the bond. In that case, the Agent's failure may cause the Surety to send its 30-day cancellation notice to ARC. Only

the Surety can cancel its bond and only with 30 days advance written notice to ARC.

Once canceled, the Surety, nevertheless, remains liable for any claims against the bond for a period of six months.

However, the debts must have been incurred while the bond was in effect, and ARC must notify the Surety within 90

days of discovery. The six-month period of continuing liability is important to note as it explains why a Surety probably

will not release your collateral during that period, even though the bond has been canceled.

Cancellation and Effect: LETTER OF CREDIT

An important feature of the Letter of Credit (LOC) is the automatic extension provision. This provides that the letter

will automatically be extended without amendment for an additional year from the present and each future expiration

date (described earlier) unless the issuer has advised ARC by certified or couriered letter, return receipt requested, of

its intent not to extend the letter. Such notice of intent must be received by ARC not less than 60 days before such

expiration date. ARC will not accept a LOC if it does not contain such a provision.

The LOC notice requirement is twice as long as the cancellation notice requirements for a bond. Unlike a Surety, the

bank’s liability for the letter of credit ceases immediately upon the expiration of its LOC unless, of course, ARC has

drawn against the LOC with the bank on a timely basis, i.e., before the expiration date. Therefore, a bank may

release collateral or other pledges immediately following the expiration of an LOC where no ARC draw has been

made upon the letter of credit. This is the second major distinction between the two types of instruments.

ARC normally issues a sight draft against the canceled letter of credit ten days before the expiration date. This draw

will not be rescinded except upon receipt of an acceptable replacement as explained below.

Cancellation: CASH SECURITY DEPOSIT

A Cash Security Deposit (CSD) is an ARC-generated instrument of financial coverage. It is not "issued" in the sense

that a surety Bond or Letter of Credit (LOC) is issued. Because of this distinction, once accepted by ARC, a CSD

remains in force as long as the funds are available without the necessity of being renewed or reinstated until the

agent replaces coverage with a Bond or LOC.

Replacements and Substitutions of all Three Types of Instruments

Keeping in mind the features and effects of Bonds, LOCs and Cash Security Deposits described above, this section

summarizes how these features may impact requested changes in your Financial Instrument coverage.

Replacement of a Bond with Another Bond

The replacement bond in the required form and amount must be received by ARC and effective no later than the

cancellation date of the bond being replaced.

Since the replacement bond will not cover any debts incurred prior to its effectiveness, ARC will not release the

previous Surety from liability. The replaced bond will run its course in accordance with its terms.

Replacement of a Bond with a Letter of Credit

ARC must receive the replacement letter of credit in the required form and amount on or before the cancellation date

of the bond.

Provided there is no change of ownership (acquisition of agency branch or existing agency with new owners), ARC

will release the Surety from liability upon receipt of a written request from the Agent or the Agent's Surety. Such

release from liability is effective on the issue date of the replacement letter of credit. In this case, you should contact

the Surety directly regarding releasing any collateral being held in connection with the bond.

Replacement of Letter of Credit with another Letter of Credit

A replacement LOC in the required form and amount must be received by ARC at least 15 days prior to the expiration

date of the LOC being replaced. If this overlap is not provided, ARC may draw down on the current LOC while it is still

in effect to protect ARC's interest. If ARC has issued a draft and the funds have not been received, ARC will not

cancel its draw until an LOC in the form and amount required has been received. If ARC has received the funds, they

will be released after receipt of the required LOC.

Replacement of a Bond with a Cash Security Deposit

ARC must receive a complete CSD application, including a cashier's or certified funds check for the full amount of

required coverage on or before the cancellation date of the bond.

The procedures and time frame to release the Surety from liability once the Bond is replaced by a CSD are identical

to the procedures and time frame employed by ARC when a Bond is replaced by an LOC as described above.

Replacement of a Letter of Credit with a Cash Security Deposit

If a replacement of the LOC is being made for a reason other than expiration, ARC will return the replaced letter of

credit to the issuing bank upon receipt of a complete and accurate CSD application and agreement, including funds

for the required amount and a written request from either the agent or the issuing bank.

Replacement of Letter of Credit with a Bond

If the letter of credit is being replaced because it is going to expire, the effective date of the bond must be the same

as or earlier than the expiration date of the letter of credit, and ARC must receive the bond before that expiration

date. PLEASE NOTE, however, that since the replacement bond will not cover any transactions before its effective

date, ARC will draw on the letter of credit and hold the funds for up to 100 days after the bond's effective date. This is

done as a protective measure to provide a limited period during which ARC and the carriers can determine if any

unpaid transactions occurred before the bond became effective. The funds will be released before 100 days if no

unpaid transactions have been found.

If the replacement is not due to the expiration of the letter of credit, but merely as a replacement with a bond due to

the agent's preference, the letter of credit will be returned to the issuing bank, provided no debts arise and remain

unpaid during that period. As an adjunct to the immediately preceding circumstance the agent, as an alternative, may

elect to provide a bond with an effective date of 100 days PRIOR to the letter of credit anniversary date. This would

entail dual coverage for that period, but would ensure that the letter of credit, provided no default occurred in the

interim, would be released to the bank after the 100th day from the bond’s effective date.

Replacement of a Cash Security Deposit with a Bond

If a CSD is replaced with a Bond, ARC will hold the CSD funds for up to 100 days from the effective date of the

required replacement Bond and, following receipt of a notarized request from the signatory of the CSD Agreement,

ARC may issue a refund check to that individual absent any discovery of any claims that were incurred prior to the

effective date of the Bond.

Voluntary Cancellation of the Reporting Agreement

Following voluntary cancellation of the Agreement, an agent may request either the release of the Surety's liability

under the bond, the return of the letter of credit or the refund of the CSD funds. One reason such requests are made

is so that collateral can be returned. The fact is that these instruments simply do not work that way.

If the agent voluntarily cancels its Agreement, a letter of credit is in effect with no expiration pending, and no debts

arise and remain unpaid during that period. ARC will return the letter of credit to the issuing bank up to 100 days from

the effective date of the voluntary deletion or up to 100 days from a satisfactory accounting of all ARC obligations,

whichever occurs later.

If, however, the voluntary cancellation of the Agreement occurs at the same time as the expiration of the letter of

credit, ARC will draw down on the letter of credit. The funds will be released to this issuing bank after 60 days, but up

to 100 days, from the date of a satisfactory accounting of all ARC obligations and provided no debts arise and remain

unpaid during that period.

If the Agent has a bond, the Surety may issue a notice of cancellation. Even so, the Surety remains liable under the

terms of the bond for any debts which were incurred during the bond's effectiveness. That period runs for six months,

during which time the Surety may elect not to release any collateral.

If the agent is covered by a CSD, those funds will be refunded to the signatory of the CSD Agreement following

receipt of a notarized request from such individual, during which time no debts arise and remain unpaid: (1) 100 days

after the effective date of the voluntary cancellation of the Agreement; or (2) up to 100 days from the date of a

satisfactory accounting and payment of all obligations, whichever occurs later.

Replacement of a Letter of Credit, Bond or Cash Security Deposit (CSD) with a Letter of Credit or a CSD in

Conjunction with an ARC Approved Complete Change of Ownership (acquisition of agency branch or

existing agency with new owners)

Liability for debts incurred prior to the effective date of certain ownership changes does not transfer to the new ARC-

accredited entity (purchaser). Therefore, when the purchaser replaces the seller's letter of credit with its own letter of

credit, bond or CSD, ARC will retain the seller's letter of credit or CSD funds for up to 100 days from the effective date

of the approval of the ownership change to ensure that any debts that may arise which were incurred by the seller to

ARC and the carriers will be covered by the seller's letter of credit or CSD funds.

Additionally, if, upon proper notice to ARC, the seller's letter of credit is canceled before the 100 days have elapsed,

ARC will draw on the letter of credit. After receipt of the proceeds of the letter of credit, ARC will repay the issuing

bank within 100 days any funds that may remain and exceed the total amount of claims paid by ARC to carriers for

unpaid documents directly to the issuing bank.

Effects of Cancellation of either a Bond or a Letter of Credit

Agents must always be covered by Bond, LOC or CSD. ARC will notify the Agent when it receives notice that a Bond

or LOC is to be canceled or will expire. If a replacement Financial Instrument in the required form and amount is not

received prior to the cancellation or expiration date, ARC will notify the System Providers to inhibit ticketing and take

action as required in the ARA.

Sureties rarely ask that their original bonds be returned once they are canceled. Banks, on the other hand, frequently

request the return of the original letters of credit after cancellation once all ARC provisions for the release of the same

have been met. The issuing bank may request in writing that the letter of credit be returned to the bank. An agent

may also request in writing that the letter of credit be returned to the bank.

Reclassification of an Agent to Verified Travel Consultant Status

The LOC of an Agent seeking to reclassify as a Verified Travel Consultant (VTC) must remain in effect for a minimum

of 100 days following the effective date of ARC's written approval of the VTC Reclassification Request.

The bond of an Agent seeking to reclassify as a VTC must remain in effect for a minimum of six months following the

effective date of ARC's written approval of the VTC Reclassification Request.

ARC will take no action if a reclassifying agent is covered by a Bond, and the Bond has not been canceled at the

reclassification effective date. If the Bond has been canceled on or before the effective date of the reclassification,

ARC will not provide the issuing Surety a Release of liability prior to the expiration of the six months date following the

bond cancellation date.

If the reclassifying agent is covered by a LOC and the LOC has not been canceled during the 60 days prior to the

VTC reclassification effective date, ARC will, upon written request from either the agent or the issuing bank, release

any remaining LOC proceeds to the issuing bank up to 100 days after the effective date of ARC's written approval of

the reclassification request absent any outstanding debts to carriers or to ARC.

If the LOC has been canceled and the cancellation date falls within 100 days of the reclassification effective date,

ARC will request that the LOC be extended to cover that 100-day period or require the agent to provide another form

of Financial Instrument or Financial guarantee acceptable to ARC. Alternatively, if the agent is unwilling or unable to

extend or renew the LOC, ARC will draw on the full amount and hold the funds until a period of up to 100 days has

elapsed, at which time they will be returned to the issuing bank, absent any outstanding debts to carriers or to ARC.

If the reclassifying agent is covered by a CSD and if there is no money owed to carriers or to ARC, ARC will return

any remaining CSD funds up to 100 days after the effective date of ARC's written approval of the reclassification,

upon written request from the signatory of the CSD Agreement.

Tips

Here are a few tips to assist you:

• Please ensure that you, your bank and your surety company use the correct ARC number (agency code

number) on all correspondence to ARC. This is critical in avoiding delays in handling your bond or letter of

credit.

• When your surety or bank requests further information and/or payments of a premium or fees, respond

promptly to avoid canceling your bond or LOC.

• ARC does not cancel bonds; therefore, we cannot reinstate or extend the cancellation date. Reinstatements

and extensions of bond cancellation dates must be received by ARC from your surety, in writing, prior to the

date of cancellation.

• If your bond or LOC is canceled, contact your insurance agent, surety, or bank, to resolve the matter OR

obtain a replacement bond or LOC prior to the effective date of the cancellation.

• Don't wait until the last minute to take care of bond/LOC cancellations or increases. It takes time for your

surety/bank to process your request.

• The ARC bond is continuous until canceled by the surety. When changing sureties or switching to an LOC,

notify your old surety to cancel your bond after you have submitted the new bond or letter of credit.

• You may want to consider the relative costs of obtaining one type of Financial Instrument versus another.

• When replacing your bond with an LOC or a CSD, the LOC or CSD must be approved and accepted by ARC

before your bond is canceled.

• When replacing your LOC with a bond, the Agent's owner or officer must submit a request in writing for the

return of the LOC to the issuing bank. In the case of CSD, the Agent must provide a notarized request from

the signatory of the CSD Agreement for a refund of the CSD funds). After 100 calendar days from the

effective date of the bond, the LOC or CSD funds may be returned if there are no outstanding debts.

• Changes to the bond, (i.e., amount, name or location) may be made by your surety executing a "rider" to

your present bond on file with ARC. Your surety has standard forms of riders that may be submitted. All

riders must have the attorney-in-fact signature and surety seal and be in a form and amount acceptable to

ARC. ARC no longer accepts continuation certificates.

• Changes to your letter of credit (in amount, name or location) are made by your bank executing a written

amendment to your letter of credit on file with ARC. The original amendment must be provided to ARC.

• Changes, other than ownership, to your CSD should be made by submitting the appropriate miscellaneous

change form (see Agency Forms Catalog) to the Bond Department.

• Always submit the original signed bond or LOC and/or riders and amendments to ARC.

• Photocopies of the bond or letter of credit forms in the Forms Catalog may be used by your surety or bank if

they bear original seals and signatures and are otherwise filled out as original documents.

• If you have not already done so, you should carefully review all of this section.

Section 3: My ARC

What Is My ARC?

ARC provides various online services through which Agents can communicate or transact business with ARC and

Carriers. These services are known as "ARC Tools" and include, for example, Interactive Agent Reporting (IAR),

ARC Pay Hub, and Memo Manager. My ARC is your centralized access point to ARC tools and resources. It uses a

single sign-on that enables a user to have a single username and password for every application behind My ARC.

Once a tool is available through My ARC, you will be required to use My ARC to access that tool. Document

Retrieval Service (DRS) is the only ARC tool that is not available through My ARC. DRS requires a separate login

from My ARC. More information on DRS, DRS FAQs, and information on how to link your My ARC and DRS

accounts is available on the ARC corporate website.

Agent's use of and access to ARC Tools are subject to the terms of the Reporting Agreement, the My ARC terms

of use and the tool's terms of use.

My ARC Security Features

• Every account has a unique username and a strong password.

• ARC is a PCI-compliant company. Due to security reasons and PCI compliance rules, we can only allow

15 minutes of idle time within our systems, including My ARC. Once your account has reached the 15-

minute limit with no activity, it is a security requirement that a new login is needed to access your session

• Content is targeted for specific customer types (i.e., Agency, Airline, Third-Party vendor). Concurrent logins

are not allowed (i.e., sharing and disclosure of username/password is prohibited per the terms of your

Reporting Agreement and PCI compliance requirements).

• Delegated administration: Agency's My ARC administrators have full responsibility for the action of their

users’ self-service: My ARC users reset their own passwords without going through ARC's secure e-mail

service (Authentica) or calling ARC’s Customer Care Center.

• Any My ARC account with access to sensitive data is suspended when it has not been used after 120

consecutive days and is deleted from the system after 150 days, along with access to all My ARC tools. If

your My ARC account only has access to tools with non-sensitive data, your password will not expire, and

you are not subject to the 15-minute activity expiration time limit; however, your My ARC account will be

automatically deleted if you do not log in for two consecutive years.

Account Creation

All new users of My ARC, regardless of organization, user, or administrator type, are required to navigate the

same activation and first-time login process. To begin the activation process:

Request a My ARC account from your organization's My ARC Primary Administrator.

After the account is created, a system-generated e-mail is sent to you to begin the account activation.

Click the My ARC Activation link (shown in the e-mail) to open the My ARC Activation Login screen and

begin the activation process.

If your email service prevents you from clicking the link, copy the entire link address and paste it into

your browser's address bar.

User Administration

In My ARC, administrators can manage a user's account information. In addition, administrators can manage a

user's access to tools and approve or deny a user's request for access to a tool. There are four classifications of

administrators in My ARC:

• My ARC Primary Administrator

• My ARC and Tool Administrator

• My ARC Administrator

• My ARC Tool Administrator

My ARC Primary Administer - Roles and Responsibilities

Please be aware that any communication or business transaction with ARC through an ARC Tool (i.e., authorization

of a sales report in IAR, submission of an application form or a change of status request in the Accreditation Tool,

etc.) by any individual who has been granted access to an ARC Tool by your My ARC Primary Administrator or Tool

Administrator, will be deemed to have been submitted and authorized directly by the Agent. Those submissions and

transactions will have the same force and effect as if they were submitted and/or signed, as applicable, directly by

an owner or officer of the Agent.

Because of the responsibility, functions and activities of the My ARC Primary Administrator, and those they assign, it

is important that you designate the appropriate individual within your company for the My ARC Primary Administrator

position.

As a best practice, you should continually review all individual and staff roles with your company that relates to

ARC, including the My ARC Primary Administrator, to ensure that the appropriate individuals fill those positions.

Useful Communication Resources

It is important for you to have a method of contacting ARC should the need arise.

The TAC (Travel Agent Communication) message is available to you on a weekly basis via e-mail. In addition, the

TAC message is posted on ARC's Corporate Website at https://www2.arccorp.com. Please ensure the agency’s

appropriate person(s) reads the TAC for important ARC information.

Online HELP

Online HELP is available in My ARC. After signing into My ARC, access HELP by clicking on the global HELP

header from any My ARC screen. Online HELP will display step-by-step instructions on how to perform tasks.

ARC's Web Page

Visit the ARC Corporate website at https://www2.arccorp.com or My ARC login for information about other ARC-

Other ARC Support Documents

Universal Credit Card Charge Form

ARC no longer produces or prints the paper Universal Credit Card Charge Form (UCCCF). Alternatively, agents

may purchase credit card sales slips from local or online office supply stores that can be used to capture card

imprints and customer signatures. A PDF version of the UCCCF is available in Section 10 of this handbook.

Although a credit card charge form no longer provides a remedy for a card-present fraud chargeback, a signed

credit card charge form can be provided as “compelling evidence” in an attempt to reverse the chargeback.

Therefore, it is still considered a best practice in a card-present environment when the ability to obtain a

magnetic stripe read or chip card read is unavailable.

For additional information about payment card acceptance and risk management, please refer to Section 6

(Payment Card Acceptance Procedures, Chargeback Management Procedures, and Best Practices) of this

handbook. You may also contact the ARC Credit Card Services team at [email protected].

Government Transportation Request

A Government Transportation Request (GTR) is a U.S. Government form that is used for authorizing official

government travel. Federal policy restricts government agencies from purchasing air transportation from an

agent unless under the terms of a specific contract. The policy for acceptance of a GTR as a form of payment or

remuneration is individually administered by each validating airline. In IAR, regardless of whether the

reimbursement is directly from the government or from the airline, a GTR must be processed as a cash

transaction.

Refund/Exchange Notice

The physical Refund/Exchange Notice (REN) document became obsolete when the industry moved from paper

settlement to electronic settlement using IAR in 2005. Originally, the REN was designed to support the manual

reporting of refunds and exchanges in the old paper weekly sales reporting process. Prior to IAR, each refund or

exchange was required to be submitted with an accompanying REN. Now that IAR has automated the sales report

settlement process, the REN document is no longer required for ARC settlement. An electronic version of the REN

is available, along with electronic versions of the auditor and agent coupons, is available in the Document Retrieval

System (DRS) available in the YOUR TOOLS section after you log into My ARC. Note: More information on DRS,

DRS FAQs, and information on how to link your My ARC and DRS accounts is available on the ARC corporate

website.

ARC no longer produces the paper REN but a PDF version is included in Section 10 of this handbook for reference

purposes. A copy of the REN may also be used to submit a manual exception transaction directly to an airline for a

transaction that cannot be settled via IAR. For example, if a document to be refunded or exchanged was issued

beyond the ticket processing validity date for that airline, typically 13 months from date of issue, that refund or

exchange must be settled directly with the airline.

Note: Exceptions to the standard 13-month ticket processing validity may be accommodated through IAR when an

airline advises ARC of their extended ticket processing validity policy. Setting a ticket processing validity policy

beyond the standard 13 months is entirely voluntary and at each airline’s discretion. Airlines that choose to exercise

this option will communicate their policy to agencies and to GDSs. For information about airlines’ ticket processing

validity, please refer to ARC’s Airline Participation tool.

Unless the airline has informed ARC of their extended ticket processing validity policy, those older documents must

be settled directly with the airline. Any transaction that cannot be processed in IAR must be reported directly to the

validating airline for handling. Individual airline policies and addresses can be accessed via the ARC Airline

Participation tool link in Section 1 of this handbook.

Carrier Documents

Carrier Support Documents

The marketing of airline transportation includes a variety of airline-issued certificates and vouchers. These

documents can be used for a variety of purposes and come in a wide range of formats and appearances. For

IAR processing purposes the two basic types of carrier support documents are:

Type A Certificates

A Type A Certificate is an airline-generated certificate giving authorization to issue a ticket at a reduced fare. It is

processed through IAR as a regular sale (straight sale) - not as an exchange. When the sale is issued, the

certificate number should be included in the endorsements/restrictions field using the proper GDS format to

ensure that the transaction can be automatically loaded to the IAR Sales Report with the certificate information.

If the airline instructions printed on your certificate indicate the transaction should be handled as a Type A

certificate, then it is included as a regular sale and should not be treated as an exchange. The transaction should be

issued as a sale and the certificate number should be included in the endorsements/restrictions field using the

proper GDS format to ensure that IAR can accurately include the certificate in the transaction. For more information,

refer to the “Type A Certificates Screen” later in this section.

Type B Vouchers

A Type B Voucher is an airline-generated document which carries a specific monetary value. It is authorization

from the airline to apply that document value as partial payment on a new ticket. The new ticket is issued as an

exchange with the Type B voucher serving as the old document.

ARC recommends that you write the new ticket number issued from that Type A certificate or Type B voucher onto

the face of those carrier support documents which should then be retained for your records. This will assist you in

documenting the transaction if ARC or the airline inquires about the transaction. A facsimile copy of the agent's

coupon for each transaction is available in the ARC Document Retrieval Service (DRS). Please note: an airline's

document retention requirement may differ from ARC's document retention requirements.

Airline Adjustment Documents

Agent Automated Deduction

An Agent Automated Deduction (AAD) allows an agent to correct a monetary discrepancy submitted in a

previous IAR sales report, up to a maximum of $25.00, in a subsequent IAR sales report. An AAD can only be

processed when the discrepancy occurred within the previous 12-week period. In addition, a separate AAD is

required for each discrepancy and only one AAD can be applied to a transaction. You may manually create an

AAD directly in IAR. See ‘Manually Adding an AAD’ later in this section.

Credit Memo

A Credit Memo is an airline-generated document transmitted from an airline to a travel agency authorizing a

deduction (credit) by the Agent in their IAR sales report of a specified dollar amount. The Credit Memo can

reference up to 14 individual supporting ticket numbers.

Most airlines participate in ARC Memo Manager which provides an easy way for ARC participating travel

professionals and airlines to electronically process and settle memos. This application allows processing of all debit

memos, credit memos, and recall commission statements. Memo Manager provides a two-way communication

between the airline and the agent and supports electronic payments through IAR. For more information on ARC

Memo Manager, click the Products tab on ARC’s corporate website, and then select View All, then select Memo

Manager.

You may also manually enter a Credit Memo directly in the IAR sales report.

Debit Memo

A Debit Memo is an airline-generated document transmitted from an airline to a travel agency for payment of an

obligation. The Debit Memo can reference up to 14 individual supporting ticket numbers.

Most airlines participate in ARC Memo Manager which provides an easy way for ARC participating travel

professionals and airlines to electronically process and settle memos. This application allows processing of all debit

memos, credit memos, and recall commission statements. Memo Manager provides a two-way communication

between the airline and the agent and supports electronic payments through IAR. For more information on ARC

Memo Manager, click the Products tab on ARC’s corporate website, and then select View All, then select Memo

Manager.

You may also manually enter a Debit Memo directly in the IAR sales report.

Recall Commission Statement

A Recall Commission Statement is an airline-generated document issued to a travel agency as a means of

recovering commission claimed by the agency. A recall commission statement can be submitted directly to an

airline through IAR and the document can reference up to 14 individual supporting ticket numbers.

Most airlines participate in ARC Memo Manager, which provides an easy way for ARC participating travel

professionals and airlines to electronically process and settle memos. This application allows processing of all debit

memos, credit memos, and recall commission statements. Memo Manager provides a two-way communication

between the airline and the agent and supports electronic payments through IAR. For more information on ARC

Memo Manager, click the Products tab on ARC’s corporate website, and then select View All, then select Memo

Manager.

You may also manually enter a Recall Commission Statement directly in the IAR sales report.

Sales Summary Adjustment Request

The Sales Summary Adjustment Request (SSAR) is a non-ARC document that agents may use to correct a

discrepancy in a previously submitted sales report. Unlike an AAD, the sum of the discrepancy may be greater than

$25.00 and may be used when the claim is from a sales period greater than within the previous 12-week period.

A SSAR is strictly between the agent and the airline and is handled outside of the IAR settlement process. ARC

cannot be involved in the processing or resolution of a SSAR claim. If you wish to pursue such an adjustment

directly with the airline, complete a SSAR form and submit directly to the Agent Audit section of the Revenue

Department of the airline used to validate the ticket in question. A PDF version of the SSAR is included in Section

10 of this handbook for reference purposes.

Information on Voiding Transactions

Note: The timetables for voiding and modifying transactions are subject to change or modification without

notice.

When Voiding a Credit Card Sale

Cash and credit card sales transactions may be voided any time prior to the end of the next business day after

document issuance. However Electronic Credit Card Billing (ECCB) procedures apply to transactions issued with a

credit card form of payment.

The following rules apply to voids of credit card sales transactions:

• Any credit card sale must be voided on the date of sale to avoid a daily credit card billing to the customer's

credit card statement. This means a sale issued in the GDS must be voided in the GDS on the same day as

the sale.

• If the same day void is not possible, the transaction can be voided the next business day by 11:59 p.m. local

time in the GDS or by 11:59 p.m. Eastern Time in IAR, which will create a credit reversal that is sent to the

credit card contractor. Your customer will see both a charge and a credit for that charge on their statement.

GDS Voids

When a transaction must be voided, ARC recommends that agents perform that void action directly in their GDS.

This ensures that the both the GDS record, and the airlines’ E-Ticket database are properly updated and reflect the

void status of the transaction. The GDS void action for a sales transaction must be performed in the GDS by 11:59

p.m. local time one business day following the date of issue. If a transaction is issued on a Friday, Saturday, or

Sunday, it must be voided in the GDS by 11:59 p.m. local time on Monday. When a Monday or Tuesday falls on an

ARC-recognized holiday, agents have one extra day to issue the void in their GDS.

The next-business day GDS void window applies to all sales transactions except ARC Pay (TASF) documents. For

airlines that support the void of exchange and/or refund transactions, the void must typically be performed the same

day the exchange or refund is issued.

Straight sale, exchange and refund transactions become non-modifiable in IAR after the void window closes

because that is when those transactions are reported to the airline. However, modifications may be made to the

following transaction types until the sales report submission deadline: MCOs, ARC Pay, AADs and Adjustment

Memos (Debit Memos, Credit Memos and Recall Commission Statements).

IAR Voids

Although ARC recommends that agents perform voids directly in their GDS, it is understood that occasionally a void

must be performed directly in IAR. When it becomes necessary to void a transaction loaded into IAR from the GDS,

that void action must be performed by 11:59 p.m. Eastern Time on the first business day following the issuance of

the sale. This is the same void timeframe that applies to voids performed in the GDS. When a Monday or Tuesday

falls on an ARC-recognized holiday, agents have one extra day to perform the void in IAR. The void of any

transaction that was manually entered into IAR must be performed by 11:59 p.m. Eastern Time of the same day the

transaction is manually added into IAR.

In most cases, a void of an E-ticket sale performed directly in IAR also updates the airline's ET database. When an

agent voids an E-ticket sale in IAR, ARC sends a real-time message to the ticketing airline's ET database

requesting permission to void the E-ticket. The airline determines whether the E-ticket can be voided. If the E-ticket

can be voided, the airline sends a confirmation message back to ARC, along with an Electronic Settlement

Authorization Code (ESAC), verifying that the E-ticket has been voided in the airline's database and displays a void

confirmation message back to the agent in IAR. If the E-ticket cannot be voided, the airline denies the request in a

response message and a message is displayed back to the agent in IAR that the E-ticket cannot be voided.

This IAR E-ticket void functionality helps maintain synchronization between IAR and the airline's ET database and

decreases the number of debit memos issued by airlines that occur because of the E-ticket status was not

properly updated. ARC recommends that the safest and most effective way to void an E-ticket is to use the void

procedures established by your GDS. Voids performed in your GDS will be sent to IAR overnight and may be

viewed in your IAR sales report the next day.

For a full list of airlines and their support policies, please refer to ARC’s Airline Participation tool, which provides

a concise list of each ARC participating airline, their policies and processes related to ARC settlement (including

payment acceptance, refund/exchange processing validity, IAR ET EDIFACT support, and Airline Direct

participation). The tool can be found in Section 1 of this handbook.

Daily Reconciliation of your IAR Sales Report

ARC strongly recommends that the IAR sales report be reconciled on a daily basis. A final reconciliation should also

be performed prior to sales report authorization/submission. The final net remittance of the report is the amount

ARC will draft to or from your bank account.

The following daily IAR sales report checks will facilitate this process:

• Verify that all documents and voids are correctly listed.

• Verify that all transactions were legitimately issued by your agency (to guard against unauthorized ticketing).

• Correct any errors.

• Verify all commission amounts.

• Verify that all refund transactions are accurate and that their values include any penalty information or waiver

code (if applicable).

• Verify that all exchange transactions are accurate and that their values include any penalty information or

waiver code (if applicable).

• Verify that all residual value MCOs/EMDs are properly linked to their associated exchange transaction as

companion exchanges.

• Verify that all other companion exchanges (exchange which involves more than one new document) have all

additional new documents correctly linked.

• Verify any GDS void of a companion exchange transaction has been processed in IAR. IAR rejects void

requests of either document once linked into a companion exchange transaction. The void of either document

is only allowed when the companion link is manually broken by removing/unhooking the second new

document from the transaction within the next business day after issuance.

• Verify all IAR modifications and voids are completed prior to the expiration of the transaction’s next business

day window date.

• Verify cash and credit totals.

• Verify the net remit amount.

Error Correction

Transaction errors and discrepancies in your IAR report should be corrected every day, and definitely prior to the

sales report is authorized/submitted for processing. IAR identifies transactions with specific errors and lists them in

an error list with an Error status code of "E" on IAR list displays. If the error is not corrected within the sales period in

which the sale is issued, the transaction automatically moves or rolls to the following week's sales report. If errors

are not resolved in the required time frame, ARC will take action as appropriate. Such transactions will be updated

in the IAR sales report with a dual status code of “OE” representing a status of both Out of Period and Error.

Authorizing and Submitting the Sales Report

Once you have verified and reconciled the report, you may authorize and submit it. The ability to authorize/submit

the sales report is reserved only for those agents with an IAR User Role that includes access to the

authorize/submit function. The IAR Sales Report must be authorized and submitted no later than 11:59 p.m. ET

Tuesday following the sales reporting period ending date (PED). When a Monday or Tuesday is an ARC-

recognized holiday, the report should be submitted no later than 11:59 p.m. ET Wednesday (subject to change).

Once the Sales Report is authorized and submitted, IAR displays a confirmation screen back to the authorizing

agent that lists the date and time of authorization/submission as well as the sales report confirmation number.

Agents are required to maintain a record of this confirmation of the Sales Report. Agents shall comply with all ARC

and individual airline rules and instructions concerning the submission and retention of supporting paper

documentation for each sales report as communicated to the agent by ARC or the airline. Electronic receipt of the

authorized sales report allows ARC to draft the agency's bank account for the net remit amount. The agency's bank

account is debited or credited five days after the PED.

Recalling a Submitted Sales Report

An IAR sales report that has been authorized and submitted may be recalled up until the sales report submission

deadline. Once the submission deadline has passed, a submitted sales report can no longer be retrieved. If for any

reason you did not authorize by the submission deadline and then authorize/submit, that sales report may not be

recalled or reversed.

Authorizing an IAR "No Sales" Report

When an agency IAR Sales Report does not contain any transactions (no activity) and has not been

authorized/submitted by the standard 11:59 p.m. ET Tuesday deadline, or 11:59 p.m. ET Wednesday during a week

with an ARC- recognized Monday or Tuesday holiday, ARC will automatically submit a "No Sales" report on your

behalf.

Note:

• Auto-Authorization for will only occur when the agency IAR Sales Reports for previous PEDs which did

contain a transaction have already been authorized and submitted. All financial information on the Authorize

and Submit screen of a "No Sales" report will reflect $0.00.

• ARC automatically submits all IAR Sales Reports for Verified Travel Consultant (VTC) program participants,

with or without activity.

Exception Transactions

Exception transactions are transactions that IAR cannot process. This includes refund or exchange documents

issued beyond the ticket processing validity supported by that airline (the standard for most airlines is 13 months

from date of the issue) and exchanges or refunds of documents issued from a non-affiliated travel agency, etc.

Note: Exceptions to the standard 13-month ticket processing validity may be accommodated through IAR when an

airline advises ARC of their extended ticket processing validity policy. Setting a ticket processing validity policy

beyond the standard 13 months is entirely voluntary and at each airline’s discretion. Airlines have the option to

extend their ticket processing validity period to 18, 24, 30, 39, 48 or 60 months from ticketing date of issue. Airlines

may modify their policy at any time and are responsible for communicating any change to agencies and System

Providers. These extended ticket processing validity options apply only to ARC settlement processes as the System

Providers or airlines may have their own limitations. For information about airlines’ ticket processing validity, please

refer to ARC’s Airline Participation tool.

Unless the airline has informed ARC of their extended ticket processing validity policy, those older documents must

be settled directly with the airline. Any transaction that cannot be processed in IAR must be reported directly to the

validating airline for handling. Individual airline policies and addresses can be accessed via ARC’s Airline

Participation tool in Section 1 of this handbook.

Document Storage and Retention Procedures

Paper airline tickets issued on ATB stock became obsolete on June 1, 2018. Originally, the elimination of paper

airline tickets in 2018 excluded automated Miscellaneous Charge Orders (Auto MCOs). However, ARC eliminated the

distribution of blank Automated Ticket and Boarding Pass (ATB) stock effective December 17, 2020. The printing and

distribution of physical ATB stock for the sole purpose of printing MCO exchange coupons and passenger receipts is

a non-essential capability that ARC, travel agencies, and airlines no longer needed. Consequently, the MCO is now

consider a “paperless” document.

Please note: ARC continues to support the settlement of paperless MCOs for any airline that still requires this

document. While the MCO remains crucial to conducting travel transactions, there is no longer value in the printing

of the physical ATB coupons. A three-year analysis of agency-issued MCOs showed that over 98% of these

documents are used internally within the travel agency. The small remaining percentage of documents are either not

used at all or are used externally for unknown purposes. ARC has consulted with representatives from our board

member airlines, and they have each given their support to ARC’s plan to eliminate ATB ticket distribution services.

Ticketing data, including refunds and exchanges and other transactional data included in the IAR sales report are

accessible in IAR and in the ARC Document Retrieval Service (DRS) for up to 60 months. Agent coupon facsimiles

are accessible via DRS for up to 60 months.

The following list details storage requirements for older paper documents and other paper non-ARC supporting

documents. In most cases, you must retain the listed document for at least 39 months from the date upon which the

weekly sales report was due to be submitted to ARC. NOTE: Other entities (e.g., governmental or tax authorities,

etc.) may require documents and records to be maintained for longer periods of time.

Document Type

Storage

Miscellaneous Support

Documents

• WV - Waiver

• LT - Lost Ticket Application

• DE - Death Certificate

• DR - Doctor's Note

• Retain any original paper copies for at least 39 months

• Record the associated ticket/document number on the document on the

miscellaneous support document

To prevent unauthorized use or re-issuance, invalidate by:

• Drawing a diagonal line from the bottom left corner to the top right

corner

• Writing the word "USED" along the diagonal line

Type A Certificates

• Retain original paper copies for at least 39 months

• Because such documents can potentially be used for airline

transportation and ancillary services, it is recommended that you

exercise caution in storing and permitting access to these documents

To prevent unauthorized use or re-issuance, invalidate by:

• Drawing a diagonal line from the bottom left corner to the top right

corner

• Writing the word "USED" along the diagonal line

Document Type

Storage

• Record the associated ticket number on the Type A document

Type B Vouchers

• Retain original paper copies for at least 39 months

• Because such documents can potentially be used for airline

transportation and ancillary services, it is recommended that you

exercise caution in storing and permitting access to those documents

To prevent unauthorized use or re-issuance, invalidate by:

• Writing the word "EXCHANGE" across the voucher or coupon

• Record the associated ticket number on the Type B voucher

Airline Adjustment Memos:

• Debit Memos

• Credit Memos

• Recall Commission

Statements

• Retain original paper copies for at least 39 months

Sales Report Storage and Retention Requirements

In the past, it was recommended that the sales report confirmation number for each authorized IAR Sales Report be

retained for at least two years as proof of Sales Report authorization. However, IAR now stores up to 60 months of

sales report data, so access to the confirmation number and authorization detail is available directly in IAR.

If you still prefer to have a paper record of each submission, you have several options, including:

• Print/Save the Authorize Submit Confirmation screen.

• Print/Save the LS - Financial Summary page which shows the authorized sales report(s) information,

including the sales report confirmation number and date/time stamp of authorization.

• A Home Office Location can print/save the LS-Financial Summary page with the ARC # qualifier of “ALL” to

create a list showing the sales report information, including the sales report confirmation number for each

location.

Note: DRS displays the sales report confirmation number on the Ticket Detail and document facsimile images.

Accessing IAR - Getting Started

To access IAR,

• Open your browser and navigate to the ARC Corporate website at www.arccorp.com.

• Click the "My ARC" login button on the top right side of the screen

• Enter your My ARC Username and Password in the appropriate text boxes.

• Click the login button.

• The My ARC Home page displays.

• In the YOUR TOOLS section on the left side of the page, click the IAR link to launch the IAR

application.

IAR Home Page Screen

Upon successful login to IAR, the first screen that displays is the IAR Home page screen. This screen shows the

Sales Reports for the ARC number you are authorized to access. While the default view displays the three (3) most

recent sales reports, you may view any IAR sales report in the ARC database for the past 60 months.

The default view includes the following three sales reports:

• The current Sales Report that has not yet been submitted.

• The previous week's Sales Report that is being reconciled for authorization/submission.

• The oldest submitted Sales Report already past the submission deadline.

To view an older sales report, you may enter the date of the PED you wish to display using the format of

DDMMMYY. You may also check the “Begin With” checkbox along with a valid PED to list all sales reports

beginning with the requested PED up to the current PED.

Online Help

Once logged into IAR, online help is readily available. To access online help, click on the global Help header. Online

Help will open in a separate pop-up window. The global Help header is located at the top right corner of the page on

every IAR screen. When you exit online HELP, IAR returns you to the last screen where you made the Help entry.

Closing IAR

When your work in IAR is completed, you should terminate your session by clicking the Close IAR link located at the

top corner of the IAR Home page screen or the Sales Report screen.

IAR Administration

Controlling Access to IAR

The Administration function allows IAR Administrators to control user access to specific locations, functions

and/or financial data within the IAR system by using User Roles and ARC# Access Groups. To access

Administration, click on the global Administration header.

Access Rights

The term ‘Access Rights’ is used to describe a user's right to access specific Sales Reports and the IAR

Administrator's rights to manage those users.

Standard IAR Sales Report Access

The default access to IAR is the Standard access group which follows ARC's Family Hierarchy structure.

If the user profile is created at a Home Office Location (HOL):

• Users at the HOL lever that have Standard access can view the Sales Reports of all branches and

locations (ARC#s) in the family structure.

• To view all locations under an HOL, you can enter the word ALL in the ARC# field on the IAR Home

page.

If the user profile is created at a Branch:

• Users at the Branch level can only access their own location.

• Branch-level users cannot view the HOL or any other branch locations within the family hierarchy.

Standard ARC# Access Group

When a user is granted access to IAR, they are assigned to the Standard ARC# Access group. Standard access is

the default access group which means the user has access to the sales report of the ARC# under which the user's

My ARC profile was created. The standard ARC# access group follows the ARC family hierarchy structure where

an IAR user's access to Sales Reports and the Administrator's authority to manage other users will be based upon

the IAR username, its associated ARC# as well as the ARC#'s position in the existing hierarchy.

For single-location agencies, users only have access to that single location. For Home Office Locations with

multiple branch locations, users at the HOL level have access to their location plus any subordinate (branch

locations). For Branch locations, users only have access to that single branch location, but not to any other branch

locations across or to the HOL.

Custom ARC# Access Groups

HOL IAR administrators are able to create custom groups of ARC# locations that differ from the standard IAR

default access. Users can be assigned to these custom groups and then be allowed flat access to only the Sales

Reports of the ARC# locations in the group. Custom ARC# Access Groups provide users with access to sales

reports outside of the limitations of the Standard ARC# group. The Custom Access Group setting also provides

select administrators with the ability to manage user profiles outside of these limitations.

NOTE: Custom ARC# Access Groups are not applicable to BOS file creation or retrieval.

User's ARC# Group Assignment

When a user has been assigned to one or more custom ARC# Access Groups, a dropdown box on the IAR Home

page indicates the groups to which they are assigned. Once selected, the IAR Home Page then displays Sales

Reports for the selected ARC# group. To view another assigned custom ARC# access group's Sales Reports, the

user must change their drop-down selection.

IAR Administrator's Ability to Manage Users

An Administrator's ability to manage IAR users is dependent upon whether they are a part of a HOL or a Branch.

If the Administrator profile is created at the HOL:

• The Administrator has access to IAR User Administration and can manage the users of all offices below

them in the family hierarchy.

• HOL Administrators are the only administrator type that can create or modify ARC# Access

groups. HOL Administrators are the only administrator type that can assign users to ARC#

Access groups.

If the Administrator profile is created in a Branch:

• Branch Administrators have access to the IAR User Administration function.

• Branch Administrators can only view and manage the users of their own location.

• Branch Administrators cannot view or manage the users of any other offices within the family hierarchy.

• Branch Administrators can view a user's assignment to the Standard or Custom ARC# Access Group but

cannot modify the assignment.

• Branch Administrators can view the contents of an ARC# Access Group.

The HOL Administrator is the only administrator type that can create or modify ARC# Access Groups and the only

administrator type that can assign users to ARC# Access Groups.

Note: The standard default view for Branch Administrators is read-only. The default view for HOL Administrators is

read/modify and allows for the modification of groups.

Controlling User Rights and Access within IAR

User Profiles

Each individual IAR user will have a user profile which identifies each user's role and Sales Report access group.

If you do not have access to the functionality necessary to fulfill your role and responsibilities, please contact

your agency's IAR Administrator.

IAR User Roles

In IAR, user rights groups are assembled into pre-defined user roles. The IAR Administrator must assign each

user to a role. Functionality is pre-set for each role, and those settings apply to all users that are members of that

user role. Based upon a user's role, certain fields in IAR are displayed or hidden from view. In this way, a user is

only able to access data and functionalities authorized for the user role to which the user is assigned.

In IAR, user roles control what a user can do in a Sales Report. Every user is assigned to one and only one user

role. Based upon a user's role, fields in IAR are active, disabled, or hidden. In this way, a user will only be able to

perform actions to which they have the rights to perform.

Access User Profiles

The Administration IAR Users Tab - Default View

***IAR Administrator Only***

The IAR User tab default view list shows, in alphabetical order, all IAR users assigned to the Administrator's own

ARC# if they are members of the Standard ARC# Access group. If the administrator is assigned to a Custom

ARC# Access group, the initial list displays, in alphabetical order, the users belonging to the one or many custom

group(s).

Search and View User Lists

In IAR the Administrator is able to search and view lists of users. By accessing the global Administration header,

an alphabetical list of users is displayed in order by last name and then the first name:

• If the user is assigned to the Standard Group, the first 20 users are in the Administrator's ARC#.

• If the user is assigned to one or more Custom ARC# Groups, the first 20 users of that group(s).

The instructions for searching and viewing a user list are located in IAR Online Help. To access the instructions at

the IAR Home page screen:

1. Click the global Help header.

2. Once selected, the online help system displays.

3. Under the table of contents, click Working with User Accounts, IAR Users Tab, Search and View User Lists.

4. Once selected, the instructions will be displayed.

Note: If no results are found, the IAR User screen redisplays with a message that no results were found.

Update a User Profile

To update a user profile the user's name must be displayed on the default IAR Users tab. To access the user's

profile, click on the EDIT button associated with the user's name and the User Profile screen displays. Make any

necessary corrections, edit, or changes and click the Submit button to process the changes.

Note: The use of the Close button on the User Profile screen will close the screen and take you back to the IAR

User tab but it will not save any edits.

Mask Credit Card Numbers by User

By default, credit card numbers are masked for all IAR users and unmasked for all BOS file users. The IAR

Administrator has the ability to turn the credit card masking feature on and off for users. The IAR Administrator

also has the ability to turn the credit card masking feature on or off for all BOS files created by users within the

agency. The instructions for masking or unmasking the ability to view a credit card number are located in IAR

Online Help.

Browsing a User Role's Rights

To view a user's rights to perform tasks in IAR, access the User Roles screen and use the up (↑) or down (↓)

arrow keys located in the Rights section of the screen.

Move ARC#

To change to another ARC#, enter a new ARC# into the View ARC#: box and click the GO button. The user

roles, number of user members, and access rights of each user for the specified ARC# displays.

Viewing Users Assigned a Specific Role

To view a list of users assigned to a specific IAR role, click the # of IAR Users link associated with the role. A

list of users displays. To move to the next page of list results, click the Next link. To return to the previous page

of list results, click the Previous link. Results can be shown in a list of 20, 50, 100 or 200 usernames per page.

To reset the list, select the CLEAR button at the bottom of the list.

Controlling Sales Report Access - ARC# Access Tab

In IAR, HOL Administrators are able to create custom groups of ARC#s to which users can be assigned to provide

those users with access to the Sales Reports for that group of ARC#s.

Search and View Lists for a Group

***HOL Administrator Only***

The HOL Administrator has the ability to view ARC# Access group information in IAR. To search and view the

group information, the Administrator must be logged onto IAR, have accessed IAR User Administration, and have

accessed the ARC# Access tab. Upon entry to the ARC# Access tab, the Show Results dropdown default is set to

20 which will display the first 20 ARC# Access groups in a list in alphabetical order by group name:

• To search the list, the Administrator enters criteria in the Find box and selects either Group Name or

Modified By in the drop-down box.

• If a Group Name is selected, any alpha numeric entry can be made in the Find box.

• If Modified By is selected, any alphanumeric entry can be made in the Find box.

• Select from the Show Results drop down box the number of results to list (the Show Results drop

down contains the values 20, 50, 100 and 200).

• Click the GO button.

• A list of ARC# Access Groups matching the search and show results criteria displays.

• If there are no results, the ARC# Access tab screen redisplays with a message that no results were found.

Note: The CLEAR button will "reset" the list to the original (default) list display.

Add a New ARC# Access Group

***HOL Administrator Only***

The HOL Administrator has the ability to add new custom ARC# Group(s) in IAR. To add a group, the Administrator

must be logged onto IAR, have accessed IAR User Administration, and have accessed the ARC# Access tab

showing a group list.

To add a new custom ARC# Access Group, from the ARC# Access tab screen:

1. Click the ADD GROUP button.

2. The ARC# Access Group Profile screen displays.

3. Type a group name (required).

4. Add an ARC# to the group (at least one is required).

5. Click the Submit button to add the ARC# Access Group to the organization.

6. Click the Cancel button to return to the ARC# Access tab screen.

7. The ARC# Access screen displays showing the new group.

Edit an ARC# Access Group Profile

***HOL Administrator Only***

The HOL Administrator has the ability to edit ARC# Access groups in IAR. To edit a group, the Administrator must

be logged into IAR, have accessed IAR User Administration, and have accessed the ARC# Access tab showing a

group list.

To edit an ARC# Access group, from the ARC# Access tab screen:

1. Click the EDIT button.

2. The ARC# Access Group Profile screen displays.

3. Rename the group and/or add/remove ARC#s from the group.

4. Click the Submit button to process the changes.

5. Click the Close button to close the screen and go back to the IAR User Tab screen. The use of the Close

button will not save any edits.

6. Click the Cancel button to undo/ignore any changes you may have made and return to the ARC# Access

Group Profile.

Delete an ARC# Access Group Profile

The HOL Administrator has the ability to delete ARC# Group(s) in IAR. To delete a group, the Administrator must

be logged into IAR, have accessed IAR User Administration, and have accessed the ARC# Access Group tab

showing a group list. For detailed instructions on deleting a group, please see IAR Online Help.

To delete an ARC# Access group, from the ARC# Access tab screen:

1. Click the group’s Trash Can icon.

2. The ARC# Access Group Profile confirmation screen displays with the message: “You are about to delete

this access group. Are you sure?”

3. Click the Yes button to process the deletion.

4. The ARC# Access Group is removed and returns to the ARC # Access screen which no longer displays the

group name.

5. Click the NO button to cancel and return to the ARC# Access screen.

Note: The Standard group cannot be deleted.

Newly Accredited ARC Locations

All newly accredited entities are automatically assigned to the Standard group. To use the ARC# in a Custom

Group, the HOL Administrator must make the change to the user's access rights.

Inactivated ARC# Groups

All inactivated (closed) ARC# locations are automatically removed from the Standard and custom ARC# Access

groups starting with the appropriate PED.

Navigating in IAR

What is Navigation?

Navigation is the term used to describe the process of 'moving around' in IAR. There are two distinct ways to navigate

through IAR - within a screen (transaction) and between screens. Navigating within screens is simply having the ability

to point and click through the screen. If you are on one field and need to move to the next, simply point your cursor

on the new field and click. You can use the keyboard Tab button to move between fields.

The second method of navigation in IAR is moving between screens. In this area, IAR utilizes Global Headers,

Global Footers and Navigation Buttons.

• Global Headers are a set of main links that appear on every page of the application and allow the user to

access the main sections of IAR quickly and easily.

• Global Footers, like Global Headers, are another set of main links that allow a user to access information

concerning ARC's Privacy Policy, IAR 2.0 Terms of Use, IAR Resource Center, and Contact Us.

• Navigation buttons allow a user to move between screens as well as view data that is not displayed on a

single screen. The navigation buttons are Next, Previous, Move Top and Move Bottom.

Screen and Transaction Navigation

By taking advantage of web browser-based technology, IAR relies on point and click functionality, drop down

boxes, buttons and other controls that allow a user to easily navigate through the screens necessary to complete a

Sales Report. In IAR, a straight sale transaction comprises two screens and an exchange transaction comprises

four screens. Note that all navigation logic is determined by document type.

Straight Sale Transactions

E-Ticket and EMD Default Navigation Screens

1. Financial Details

2. Itinerary/Endorsements

MCO Default Navigation Screens

1. Financial Details

2. MCO Information

Exchange Transactions

E-Ticket and EMD Exchange Default Navigation Screens

1. Financial Details

2. Itinerary/Endorsements

3. Exchange Support

4. Exchange Summary

MCO Exchange Default Navigation Screens

1. Financial Details

2. MCO Information

3. Exchange Support

4. Exchange Summary

Refund Transactions*

1. Refund Details

2. Refund Application

* The Itinerary/Endorsements screen and associated fields does not apply to refunds.

Internet Browsers and Browser Navigation

A browser is a software program that helps you navigate the Web and access text, graphics, hyperlinks, videos,

and other multimedia. Browser navigation refers to the standard ability for users to move around in a web-based

browser application.

Forward Button

The Forward button navigates to the next location in the browser history. If no history exists, then no forward

navigation takes place.

Back Button

The Back button returns you to the previous page you visited. In a newly added transaction that has not been

saved using the ET button, if you use the Back button to go to the Sales Report screen and add any data, the

newly added transaction will be ignored.

Refresh Button

The refresh button re-loads the IAR screen you are currently viewing.

File, New Window - IAR DOES NOT SUPPORT THIS FUNCTIONALITY

Web browsers allow a user to open a second browser window from the screen that was originally opened (or first

screen accessed). IAR does not support this type of functionality because opening multiple windows has the

potential to cause data synchronization errors and other system issues. IAR accepts data from the window you are

working in, so if you are in a transaction and you press the ET button, the transaction will be closed. If you try to

modify the transaction that appears to still be open in a second window, IAR will display an error message.

Print/Save

On the IAR Home page and Sales Report screens, IAR supports printing of lists formatted to fit a standard 8.5"x 11"

page. Other IAR pages can also be printed by using the browser's print button. However, if the browser's print button

is used, you will need to user the browser page setup functionality to manage the printing format. IAR cannot format

browser printing.

To print or save in IAR, navigate to the IAR Home page screen and then:

1. Click the drop-down box displaying the default Printable List textbox.

2. Click the desired print or save option (Printable List, Save List in Spreadsheet Format or Save List in Text

Format).

3. The print/save option selected displays in the Printable List textbox.

4. Click the PRINT/SAVE button.

General Screen Navigation Functionality

• When a transaction retrieved from the Sales Report contains an error the first default navigation

screen containing the field in error is displayed.

• When a transaction retrieved from the Sales Report is error-free, the first default navigation screen is

displayed. All entered data will be retained unless the transaction is ignored, or a time-out occurs.

Exception: If non-stored data is entered then all navigation is cancelled, and the current screen is re-

displayed with the field in error.

• When an End Transaction (ET) button is clicked, the transaction is saved and written to the database

either as an error or error-free based upon all required edits.

• If data is entered in both the Add New Document and Add Old Document fields of the Financial Detail

Screen, then the Add Old Document data takes precedence.

• Accessing a document from the New Documents list on the Financial Detail Screen will result in the

current transaction being closed and the requested document being opened.

• In an exchange, new document errors will take precedence over old document errors.

Enter Key

Using the enter key on your keyboard allows you to:

• Activate buttons in focus.

• Edit all data fields within a transaction.

• If the screen contains no errors, then the Enter key will follow default navigation for that transaction.

• If you are on the last default navigation screen, pressing Enter will redisplay that screen with a

message to select “ET” or "IGNORE".

• Activate buttons (Financial Details screen) - If old or new documents have been added to the appropriate

fields then pressing "Enter" will activate the "add document" button.

• When adding an old document in an exchange, pressing "Enter" will move you to the Exchange

Support screen.

Tab Key

The Tab key on your keyboard moves the cursor forward, left to right, and between fields on a screen.

Screen Tabs

Screen Tabs are located at the top of each screen and allow a user to move to another screen. By using the

screen tabs, you can:

• Go directly to the indicated screen.

• Override all conditions except:

o Non-stored data fields errors.

o Data entered on either the Add New Document or Add Old Document fields.

o The current screen will be redisplayed for data correction or removal.

• Retain all data entered on exited screen.

• The Exchange Support and Exchange Summary screen tabs are not available for straight sale transactions.

Ignore Button

When the IGNORE button is used:

• A confirmation of the intent to ignore (Are you sure you want to IGNORE? YES or NO) is displayed.

• The transaction is returned to the database in the same state as when it was initially retrieved.

• When adding a new transaction, pressing the IGNORE button means that the transaction will not be added

to the Sales Report.

ET Button

When the ET button is clicked:

• A confirmation of the intent to save (Are you sure you want to End Transaction? YES or NO) will be

displayed.

• Selecting YES saves and closes the transactions.

• Selecting NO takes you to the last displayed transaction screen.

• Transactions containing error conditions will be saved and closed with an error status.

Next Button

Click the Next button to move to the next transaction page. Note that:

• When the NEXT button is used within a transaction it follows the default navigation of one page to the next

page. Clicking NEXT will not override any error conditions. If errors are found, then the current screen is

redisplayed with a descriptive error message.

• Any data entered into a field on a screen will be retained once the screen has been exited.

• On the Financial Details screen, if data is entered in either the Add Old or Add New Document fields, then

the Add Old Document data will take precedence over the Add New and be processed. The data entered

in the Add New Document field will however be retained. The New Document data must then be either

processed or removed from the field.

• The NEXT page link is not available on the last default transaction screen.

Click the Previous button to move to the previous transaction page. Within a transaction the Previous button:

• Follows the default navigation in reverse order.

• Pressing the Previous button will not override any error conditions. If errors are found, then the current

screen will be redisplayed with a descriptive error message.

• Any field data entered on the exited screen will be retained.

• On the Financial Details screen, if data has been entered in either the Add Old or Add New Document

fields, then the Add Old data will take precedence and be processed. The data entered in the Add New

Document field will however be retained. The New Document data must then be processed or removed

from the field.

• The Previous button is not available on the first default transaction screen.

Cancel

Click the Cancel button to end a transaction and not save any changes made. Also note that:

• Pressing the Cancel button on the Exchange Support screen will navigate back to the Financial Details

screen without adding an old document.

• Pressing the Cancel button on the Additional Certificates screen will navigate back to the Financial

Details screen without adding any new certificates in positions 5-50.

• Pressing the Cancel button on the Old Doc Duplicate screen will cancel the old document additional screen

and return you to the Financial Details screen.

• Pressing the Cancel button on the Duplicate Tickets: Sale screen will cancel the sale document addition

and return you to the Sales Report screen.

Global Headers

The four global headers in IAR include: Administration, Home, BOS and Help. To access any of the global headers

at any IAR screen, click on one of the headers and the first screen of the associated link displays.

Note: Only users assigned to the IAR Administrator role will see the Administration header button. Clicking on this

button opens User Administration in the same browser window and displays the IAR Users tab.

Global Footers

IAR utilizes global footers that serve as links to important information. The footers appear at the bottom of every IAR

screen so the information can be easily accessed. The global footers include information on Privacy Policy, IAR 2.0

To access any of the global footers, click on the footer link and the first screen of the associated link displays.

Navigation Buttons

Navigation buttons allow a user to move between screens as well as view data that is not displayed on a single

screen. The navigation buttons are Next, Previous, Move Top, and Move Bottom.

• Move Top - Moves to the top of a page.

• Previous - Moves to the previous screen.

• Next - Moves to the next screen.

• Move Bottom - Moves to the bottom of a page.

List Navigation

You may view lists of transactions at any time while working in IAR. Viewing these lists, especially prior to submitting

a report to ARC, can provide you with information about the transactions that are in the Sales Report. The ability to

look at transaction lists in IAR is contained in the Sales Report screen's list tab function. All available transaction

qualifiers are located on this screen. By selecting qualifiers, users can create custom lists of Sales Report

transactions.

IAR Home Page List Type Drop Down Boxes

Four list types can be selected form the IAR Home page screen:

• Financial Summary - Shows financial summary information for a specific Sales Report or group

of Sales Reports that a user can access. This is the default list view.

• Financial Detail – Shows summarized detail financial information for a specific Sales Report or

group of Sales Reports that a user can access.

• List Counts - Shows a count of transaction types for a specific Sales Report or group of Sales

Reports that a user can access.

• Total Counts - Shows a summarized total count for each transaction type for a specific Sales

Report or group of Sales Reports that a user can access.

When used in conjunction with the ARC# Access GROUP and Sales Report Status drop down boxes, the List Type

drop-down box allows a user to narrow a search for specific information.

To select a List Type:

At the IAR Home Page screen:

1. Click on the List Type drop down box.

2. Click the desired list type.

3. The list type selected displays in the List Type textbox.

4. Click the CREATE LIST button.

5. The requested list displays.

List Results

A user can view a list of 20, 50, 100, 250 or 500 results per page. To select the number of results shown per page:

Click the Results drop down box to display count options.

Select a count.

The count will display in the textbox.

Click the CREATE LIST button.

Print /Save List

On the IAR Home Page and Sales Report screens, IAR provides a means to print and save lists which are formatted

to fit a standard 8.5" x 11" page. Other IAR pages can also be printed by using the browser's print button. However,

if the browser's print button is used, you will need to user the browser page setup functionality to manage the

printing format. IAR cannot format browser printing.

To print or save in IAR navigate to the IAR Home page screen and then:

1. Click the drop-down box displaying the default Printable List textbox.

2. Click the desired print or save option (Printable List, Save List in Spreadsheet Format or Save List in Text

Format).

3. The print/save option selected displays in the Printable List textbox.

4. Click the PRINT/SAVE button.

Working with Other Sales Reports within Your Organization

Move to another Sales Report Period

IAR gives a user the ability to move to another sales report Period Ending Date (PED). The default view for Sales

Reports when using this functionality displays:

• The current Sales Report that has not yet been submitted.

• The previous week's Sales Report that is being reconciled for authorization/submission.

• The oldest submitted Sales Report already past the submission deadline.

After moving to a different PED, you may perform all normal IAR functions assigned to you as long as the ARC

submission deadline for the Sales Report has not passed. Users may move to any IAR sales report PED from the

past 60 months by entering the desired Sunday date in the PED field, or by selecting a date using the pop-up virtual

calendar that automatically appears in the PED field.

To move to another Sales Report PED at the IAR Home page screen:

1. Type a valid Sales Report PED into the PED textbox, or use the pop up visual calendar to select a PED.

2. Click the CREATE LIST button.

3. The Sales Report screen displays with the List tab displayed.

4. A list of transactions for the entered PED displays.

Note: A valid PED is entered in a DDMMMYY format and must be a Sunday date. You may also type in the word

"PED" to display a list of all active sales reports for a location, which will display the sales reports for the three most

recent PEDs.

Move to another ARC location’s Sales Report (Move ARC#)

The functionality to move to another ARC location's Sales Report allows an agency to 'move' into a subordinate

or branch agency's Sales Report to view their sales activity as well as add or modify transactions. You can also

move to another ARC number when you need to perform IAR functions in another ARC number, such as for a

branch. Note that you may only access other ARC locations if you have access rights to that group. For detailed

instructions on moving to another ARC# location, please see IAR Online Help.

To move to another ARC location, navigate to the IAR Home page screen and then:

1. Type a valid 8-digit ARC location number into the ARC # textbox.

2. Click the CREATE LIST button.

3. The Sales Report screen displays with the List tab displayed.

4. A list of sales reports for the requested ARC# displays.

The ARC# field also allows an agency with multiple locations to view more than a single location. The default on initial

entry to the IAR Home page displays the sales report for the three most recent PEDs of your assigned ARC location.

However, if you are located at a Home Office Location (HOL), you may type in the word "ALL" in the ARC # text box

instead of an 8-digit ARC location number. Use of “ALL” displays a list of the active sales reports for all locations

associated with your assigned location. The “ALL” option works in conjunction only with the List Type options of LS -

Financial Summary or LC- List Counts and can be combined with the PED text box to list all sales reports for all

PEDs or all sales reports for a single PED.

Move to a Different Custom ARC# Group

For agencies with multiple locations, moving to another custom ARC # group allows you to move into a different

group and take on the IAR sales report access rights of that group. This provides a way to create groupings of ARC

locations to organize and assign work. You would move to another ARC# custom group when you need to perform

IAR functions in that group.

To move to a different custom ARC# Access group, navigate to the IAR Home page screen and then:

1. Select a custom group from the Access Group drop down box.

2. Once selected, the group name moves to the top of the box.

Sales Report Tabs

The tabs on the Sales Report screen allow a user to access the screens necessary to complete a Sales Report.

tabs include:

• List - Displays the screen necessary to allow a user to create lists of transactions using IAR qualifiers.

• Modify - Contains the screens necessary to allow a user to modify and make changes to a

transaction(s).

• Add - Contains the screens necessary to allow a user to add transactions to the Sales Report.

• Refund - Contains the screens necessary to allow a user to refund

transactions.

• Void - Contains the screens necessary to allow a user to void transactions.

• View Only - Contains the screen necessary to allow a user to view transactions but make no

modifications to those transactions

Note: Each one of these tabs is explained in further detail in the appropriate and corresponding chapter in this

section of the handbook.

List Tab

The List tab on the Sales Report screen contains all the transaction list qualifiers available for use in IAR. By

selecting qualifiers, users can create custom lists of Sales Report transactions.

To access the List tab, navigate to the IAR Home page screen and then:

1. Click an ARC# link to access a Sales Report.

2. The default Sales Report screen displays set to the List tab.

3. On the List tab, select the desired qualifiers.

4. Click the CREATE LIST button.

5. The Sales Report screen re-displays and shows a list of transactions that meet the criteria set by the

chosen qualifier.

6. Click the CLEAR button to clear the qualifier fields on the List tab.

Displaying and Working with Transaction Lists

Displaying a list of transactions provides a user with information about document numbers, transaction types, forms

of payment, document totals, commissions and net remittance amounts. A one-line summary of each transaction

from the Sales Report is shown on a List Transactions display.

The List Transactions display gives you the ability to review your Sales Report prior to submitting it to ARC for

settlement. You may request a List Transactions display whenever you wish to view transactions within a

specific Sales Report PED and/or subordinate ARC number.

You also have the ability of using qualifiers to pinpoint certain transaction attributes and narrow the number of

transactions shown on a list. A list transaction display is available for any unsubmitted Sales Report, any submitted

Sales Report not past the Tuesday 11:59 p.m. submission deadline, or the last submitted Sales Report that is past

the submission deadline.

To view a list of transactions, navigate to the IAR Home page screen and then:

1. Click the ARC# link to access a Sales Report.

2. The Sales Report screen displays a list of all transactions for the current PED and selected ARC#.

List Qualifiers

IAR can assemble more specific data in a transaction list if a qualifier is used. A qualifier is an entry that

customizes a list so that only specific transactions are displayed. IAR allows a transaction list to be assembled in

IAR using the following qualifiers:

• ARC#

• Carrier Code

• Commission

• Date Range

• Document Number Range

• Document Type

• Electronic Settlement Authorization Code (ESAC)

• Form of Payment

• International Indicator PED

• System Provider

• Transaction Status

• Transaction Type

Transaction List by ARC#

An authorized user may create a list of transactions for any valid ARC# they are authorized to access. To create a

list of transactions for a specific ARC#, type the ARC# into the ARC# text box on the Sales Report screen and click

CREATE LIST. A list of transactions for that ARC# displays. Used in conjunction with the other qualifiers shown on

the Sales Report screen, it allows the user to narrow down the list of transaction search results.

Transaction List by PED

A list of transactions by specified period ending date (PED) can be created in IAR. To create a list of transactions by

PED, type a PED into the PED text box on the Sales Report screen and click the CREATE LIST button. A list of

transactions for that PED displays. Used in conjunction with the other qualifiers and qualifier combinations shown on

the Sales Report screen, allows the user to narrow down the list of transaction search results.

Transaction List by Transaction Status

Transaction Status indicates the condition of the document. For purposes of IAR system functionality, the

following statuses may be used as qualifiers:

• O - Out of Period – Creates a list view of only those transactions which are being reported in a sales

reporting period other than in which it was originally issued. Appears in list displays with a status of “o.”

• E - Error – Creates a list view of only those transactions which have one or more IAR-identified errors in its

data. Appears in list displays with a status of “E.”

• V - Void – Creates a list view of only those transactions that have been voided. Appears in list displays with

a status of “V.”

• S – System Unresolved – Obsolete and is no longer used.

• MDA - Modified – Creates a list view of only those transactions that have had some type of manual

modification in IAR. Not a displayed code.

• MCD - Commission Modified - Creates a list view of only those transactions that have changed the

commission amount. Not a displayable code.

• MDP - Pricing Modified – Creates a list view of only those transactions that were originally auto-priced by a

GDS and had a change to a pricing data element. Not a displayable code.

• MDN - Non-pricing Modified - Creates a list view of only those transactions that had a change to a non-

pricing data element. Not a displayable code.

When two transaction status types apply, a dual status (two codes) is displayed in the transaction list. If more than

two apply, the first two codes are displayed along with an asterisk (*) to indicate more status codes apply than can be

displayed.

To create a list of transactions by status, start at the List tab on the Sales Report screen and then:

1. Click the arrow located to the right of the Status combo box to display a list of available statuses, or type the

first letter of the qualifier in the box to bring it to the top.

2. Select a Status.

3. Click the CREATE LIST button or press the Enter key.

4. A list of transactions by the selected status displays.

5. To reset the List tab selections, click the CLEAR button.

Transaction List Document Number Range

The default for all lists begins with the first document number of the PED. However, the document number start and

end qualifiers may be used to assemble a list beginning with a specific document number and ending with a specific

document number.

To create a list of transactions by document number range start at the List tab on the Sales Report screen and then:

Type the beginning 10-character document number in the Document# (start) textbox.

Type the ending 10-character document number in the Document# (end) textbox.

Click the CREATE LIST button or press the Enter key.

A list of transactions by specified document numbers displays.

To reset the List tab selections, click the CLEAR button.

Transaction List by Document Type

Document type refers to the type of ticket or document used for a transaction. This entry is used to narrow the scope

and range of the list display thus making it easier to pinpoint specific documents.

To create a list by document type, start at the List tab on the Sales Report screen and then:

Click the arrow located to the right of the Document Type combo box to display a list of available

document types or type the first letter of the qualifier in the box to bring it to the top.

Select a Document Type.

Click the CREATE LIST button or press the Enter key.

A list of transactions by specified document type displays.

To reset the List tab selections, click the CLEAR button.

Transaction List by Transaction Type

Transaction Type qualifier codes refer to the type of transaction that appears in a list display. This entry is used to

narrow the scope and range of a list display making it easier to pinpoint specific transaction types.

To create a list by transaction type, start at the List tab on the Sales Report screen and then:

Click the arrow located to the right of the Transaction Type box to display a list of available transaction

types or type the first letter of the qualifier in the combo box.

Select a Transaction Type.

Click the CREATE LIST button or press the Enter key.

A list of transaction by selected type displays.

To reset the List tab selections, click the CLEAR button.

Transaction List by Form of Payment

The transaction list by form of payment allows a user to display a list of transactions by the form of payment listed

on the document. Forms of payment include cash or credit card.

To create a list by form of payment, start at the List tab on the Sales Report screen and then:

Click the arrow located to the right of the Int'l Indicator box.

Click the arrow located to the right of the Form of Payment combo box.

Select a Form of Payment (CA-Cash or CC-Credit Card).

Click the CREATE LIST button or press the Enter key.

A list of transactions by the specified form of payment displays.

To reset the List tab selections, click the CLEAR button.

Transaction List by International Indicator

This qualifier allows a user to display a list of international transactions or domestic transactions.

To create a list by international or domestic indicator, start at the List tab on the Sales report screen and then:

1. Click the arrow located to the right of the Int'l Indicator box.

2. Select either I-International or D-Domestic or type the first letter of the qualifier (I or D).

3. Click the CREATE LIST button or press the Enter key.

4. A list of transactions with International or Domestic indicators displays.

5. To reset the List tab selections, click the CLEAR button.

Transaction List by System Provider

This qualifier allows a user to display a list of transactions by system provider.

To create a list by system provider, start at the List tab on the Sales report screen and then:

1. Click the arrow located to the right of the System Provider box to display a list of system providers or type the

first digit of the 4-digit system provider code to bring it to the top.

2. Select a System Provider.

3. Click the CREATE LIST button or press the Enter key.

4. A list of transactions by specified system provider displays.

5. To reset the List tab selections, click the CLEAR button.

Transaction List by Date Range

This qualifier allows you to display a list of transactions by a specified date range. Date ranges used can be PED,

entry date, modified date or void date.

To create a list by date range, start at the List tab on the Sales Report screen and then:

Click the radio button associated with the type of date range for the list (PED, Entry Date, Modified Date or

Void Date).

Type the start date in the first box (on the left).

Type the end date in the second box (on the right).

Click the CREATE LIST button or press the Enter key.

A list of transactions will display a specified date range.

To reset the List tab selections, click the CLEAR button.

Note:

When viewing a Sales Report, the default dates are the start and end of the PED. The following formats for PED

dates are supported by IAR:

• Slashes in the following formats:

o Date is in format MM/DD/YY or MM/DD/YYYY or M/DD/YY or MM/DD/YY or MM/D/YY or

MM/DD/YYYY or M/DD/YYYY or M/D/Y

• Dashes in the following formats:

o Date is in format MM-DD-YY or MM-DD-YYYY or M-DD-YY or MM-DD-YY or MM-D-YY or

MM-DD-YYYY or M-DD-YYYY or M/D/Y

• Formats without slashes or dashes:

o Date is in format DMON

o Date is in format DDMON

o Date is in format DDMONYY

o Date is in format DDMONYYYY

• IAR does not support the formats of DDMMYYYY or DDMMYY

• You may also select a date using the pop-up visual calendar

Transaction List by Commission Amount

Allows you to narrow a search by commission dollar amount or commission percentage equal to a certain amount or

not equal to a certain amount.

To create a list by commission amount equal to, start a the List tab on the Sales Report screen and then:

1. Click the Equal To radio button.

2. Type commission amount or percentage into the text box.

3. Click the CREATE LIST button or press the Enter key.

4. A list of transactions by commission amount equal to a specified amount or percentage displays.

5. To reset the List tab selections, click the CLEAR button.

To create a list by commission amount not equal to, start at the List tab on the Sales Report screen and then:

Click the Not Equal To radio button.

Type commission amount or percentage in the box.

Click the CREATE LIST button or press the Enter key.

A list of transaction by commission amount not equal to a specified dollar amount or percentage displays.

To reset the List tab selections, click the CLEAR button.

Transaction List by Carrier Code

Allows the user to display a list of transactions by the three-digit carrier code.

To create a list by carrier code, start at the List tab on the Sales Report screen and then:

Type the 3-digit carrier code in the Carrier Code text box.

Click the CREATE LIST button or press the Enter key.

A list of transactions by specified carrier code displays.

To reset the List tab selections, click the CLEAR button.

Transaction List by Void ESAC

When an E-ticket is voided through the GDS, the airline's ET database is updated with a status of void and an

Electronic Settlement Authorization Code (ESAC) is assigned by the airline. The ESAC is automatically loaded into

the IAR Sales Report with the void transaction.

To create a list of transactions with an ESAC, start at the List tab on the Sales Report screen and then:

Click the VOID ESAC checkbox.

Click the CREATE LIST button or press the Enter key.

A list of transactions with ESAC codes displays.

To reset the List tab selections, click the CLEAR button.

Qualifier Combinations

Qualifier types can be combined. One qualifier from each category (status, document number, document type,

transaction type, form of payment, international indicator, system provider, date range, commission and carrier

code) can be selected to create very specific list results. IAR will allow you to enter an illogical qualifier

combination, but the resulting list will be empty. If you are not receiving the results you expect, verify you have

selected the correct qualifiers.

Break in Ticket Number Sequence

The List Transactions display begins with the first document of the current day, selected day or PED. Documents

are displayed in a sequential ascending ticket number order, from the first document number to the last.

When this normal sequential document number flow is interrupted, IAR flags the break in sequence with an asterisk

(*). The asterisk appears to the right of the out-of-order document. Another type of break in the normal sequential

document number order occurs when two or more documents legitimately receive the same ticket number.

Duplicate ticket numbers are also identified with an asterisk. The presence of these skips or breaks in ticket number

sequence does not necessarily indicate an error. The asterisk is provided to visually call your attention to the

document and to serve as a checkpoint for you.

Breaks in ticket sequence are only noted on sales transactions within List Transactions displays; that is, asterisks

will not be displayed alongside refunds, adjustment memos or system cancelled voids (voids with a transaction

code of “CN”).

Display of Conjunction Documents

Conjunction documents occur when a transaction contains more than four segments of itinerary and therefore

span more than one document number. The first document number in the conjunction is the primary document.

The subsequent secondary document numbers immediately follow the primary number. The primary document

and its associated conjunction documents are considered to be a single transaction set.

All pertinent ticket information for the transaction set is only listed on the first line of display with the primary

document. The secondary document information lines are left blank except for the conjunction document number

and the transaction type (TT) code of "CJ". The 3-digit carrier code is also suppressed from the display. Lines 15

and 16 in the example below show a conjunction set for ticket numbers 7287590388 - 389.

Document Processing

Viewing, Modifying and Adding Transactions in the Sales Report

You may view or add transactions to the IAR Sales Report at any time prior to the Tuesday 11:59 p.m. Eastern

Time submission deadline. This includes E-tickets, EMDs, MCOs, adjustment memos, AADs, refunds, and

exchange transactions. You may also modify transactions prior to the close of the next business day void/modify

window.

IAR provides the capability of modifying and adding documents to the Sales Report with easy-to-use point and

click functionality and fill-in entry screens. These screens will be reviewed in this section with the exception of

the fill-in screens for AADs, Refunds, and Exchanges. These will be reviewed in the sections that pertain to the

specific document and transaction types.

You may view details of a transaction without making any changes to it by using the List Detail option on the View

Only tab. The List Detail option is used to view the details of a transaction in any of the following Sales Reports:

• Any un-submitted Sales Reports.

• Any submitted Sales Report not past the Tuesday submission deadline.

• The last submitted Sales Report that is past the submission deadline.

Certain financial and informational fields on transactions may not be changed unless those fields contain an IAR-

identified error. Because a Sales Report should not be submitted until it is error-free, errors should be corrected using

the Transaction Modify command option on the Modify tab. Any changes made using the Transaction Modify

command will update the document and the Sales Report as soon as the transaction has successfully completed.

This section provides information on:

• Navigating through the various transaction processing screens.

• Viewing a transaction in the Sales Report.

• Modifying a transaction in the Sales Report. Adding a transaction in the Sales Report.

• Processing duplicate document numbers.

Screen Navigation

You will navigate through a series of screens when you are viewing, modifying or adding transactions in IAR. While

navigating you will note that there are two types of IAR screens: Mandatory and Conditional.

• Mandatory screens are required to be completed as they contain mandatory document information.

• Conditional screens are required only if the conditions exist for additional mandatory information.

• For example, if you are using a certificate as a form of payment for a ticket, the certificate data on the

Financial Details screen will be required to record the certificate information which supports the reduction in

fare. However, if you do not have a certificate to enter, the certificate screen is not mandatory.

View Only Tab - Viewing a Transaction

The View Only tab on the Sales Report screen allows you to view documents in a read-only mode, view when a

document was originally settled, research a document's use in refunds or exchanges, view if the document has been

modified, or determine whether a transaction was voided in the GDS or directly in IAR.

The View Only tab contains three view options: LD - List Transaction Detail, LM - Last Modified and LO – Find

Old/Used Document.

To access the View Only tab, navigate to the IAR Home Page screen and then:

1. Click the ARC# link to access a Sales Report.

2. The default Sales Report screen displays set to the List tab.

3. Click the VIEW ONLY tab

4. Select the desired View Only type.

5. Type a document number into the 10-character Document# text box.

6. Click the GO button.

Using the View Only tab:

• From within any sales report PED, select “LO-Find Old/Used Document” option to view where any

document was reported, and if applicable, was used in an exchange or refund.

• From a specific sales report, select the “LM-Last Modified” option to see the last modification made to a

document in that sales report.

• From a specific sales report, select the “LD-List Detail” option to display a document in that sales report.

List Transaction Detail

IAR allows a user to view a transaction using the List Transaction Detail option on the View Only tab. This option

gives the user a "View Only" of all the details that support a specific transaction as recorded in IAR. You may use

the List Transaction Detail entry when you wish to quickly review the passenger’s name and itinerary on a

particular document or to review a transaction after you have manually added it to IAR. The List Transaction

Detail option may be made only from within the specific sales report PED in which the desired transaction is

located.

Note: You may not change information displayed on the List Detail screen. Any changes you wish to make to a

document can only be done using the Transaction Modify command on the Modify tab or by clicking the ticket

hyperlink from the main IAR Sales Report page.

This view is used only when you wish to look at specific information without making changes to a transaction.

To view the details of a transaction in a read-only mode, navigate to the View Only tab on the Sales Report screen

and then:

1. Click the LD-List Transaction Detail radio button.

2. Type a document number in the 10-character Document# text box.

3. Click the GO button.

4. The transaction's Financial Details screen displays.

5. Click the ET button to end transaction and exit the screen.

Last Modified

IAR allows a user to view the source of a transaction and whether it was modified in IAR using the Last Modified

option on the View Only tab. This view is available to assist you to verify and reconcile voids within the available

void window and to view if anyone has made manual changes to a transaction once it was loaded to IAR. The List

Transaction Detail option may be made only from within the specific sales report PED in which the desired

transaction is located.

To search for the last modification made to a transaction, navigate to the View Only tab on the Sales Report screen

and then:

Click the LM - Last Modified radio button.

Type the document number in the 10-character Document# text box.

Click the GO button.

The list redisplays with the last modified document with the column headings changed to show the

document use information.

Last Modified example of a ticket that was modified. Shows the modification date, time and username:

Find Old/Used Ticket

IAR allows the user to search for any document from within any IAR sales report PED using the List Old/Used

Document option on the View Only tab. You may search for any document from the past 60 months, not just those

that have been refunded or exchanged.

You do not need to know the original issue date or PED of the requested transaction. The List Old/Used document

option performs a search across all sales report PEDs, and across all other branches within your agency

organization, if applicable. Once displayed, you will have the PED information needed to move to the sales report

PED and then view information related to that document, such as the issue date or original form of payment.

The following conditions apply to the Find Old/Used Ticket function:

1. If the document was reported, but not refunded or exchanged, the transaction will be displayed with a “F”

indicator for each open coupon, with a dollar amount of the sale, the settled ARC#, settled PED and sales

summary reference number. A message will be displayed indicating that the refund or exchange usage was

not found within IAR.

2. If the document was refunded or exchanged, two lines will be displayed. The first line represents the original

sale and will display an “R” indicator for each refunded or exchanged coupon, with a dollar amount of the

sale, the settled ARC#, settled PED and sales summary reference number. The second line represents the

refund or exchange and will show the number of the coupon(s) being refunded or exchanged. Also displayed

are the PED, ARC#, amount of the refund/exchange, and where that refund/exchange usage occurred.

3. If the document requested is not found in IAR, an error message is displayed. If an invalid document number

is requested, an error message is displayed.

4. If a duplicate transaction exists, then a duplicate selection screen is displayed for you to select the

appropriate transaction.

5. If the document requested was used in an exchange that has companion tickets, then only the primary ticket

is listed. If the primary ticket has been settled, then a "C" is displayed to the right of the primary ticket number

(- New Number) along with an informational message. The "C" code only appears if the primary ticket is a

settled document.

To search for an old or used ticket:

1. At the View Only tab on the Sales Report screen,

2. Click the LO-Find Old/Used Document radio button.

3. Type the document number in the 10-character Document# textbox.

4. Click the GO button.

5. The list redisplays with the old or used ticket listed. The column headings of the list will change to show

the document use information.

Find Old/Used Document example of a ticket that was reported, but not refunded or exchanged:

The message “Refund / exchange usage not found” is displayed when the requested ticket was reported in IAR

but has not been refunded or exchanged.

Find Old/Used Document example of a ticket that was refunded:

The first line represents the sale of the transaction, and the second line represents when and where the transaction

was refunded.

Find Old/Used Document example of a ticket that was exchanged:

The first line represents the sale of the transaction, and the second line represents when and where the transaction

was exchanged.

Find Old/Used Document example of a debit memo:

Searching for a memo may result in multiple documents being displayed since all airlines use the same memo

number range. These numbers may repeat across airlines, or within the same airline, at any time.

Modifying a Sales Transaction

When the IAR system detects missing or inaccurate data the transaction is flagged with an "E" error status. Because

a Sales Report should not be submitted until it is error-free, IAR has the functionality to allow for error corrections.

These corrections are made using the Modify tab or by clicking the ticket hyperlink from the IAR Sales Report page.

Modifying a transaction permanently updates the IAR record of the document, which is reflected in the submitted

Sales Report.

The Modify function may be used to modify information contained in the Sales Report including documents

automatically received from the GDS and documents manually added to IAR. This includes MCOs, EMDs,

Adjustment Memos, AADs, Refunds and Exchanges. If a transaction has been manually added to IAR, any

modifiable field can be changed or modified until 11:59 p.m. ET the day the transaction was added to IAR.

When a transaction has been automatically loaded from the GDS, only certain fields may be modified on an error-

free transaction. For an E-ticket straight sale or a refund, only seven fields are open for modification by an agent:

1. Commission

2. Tour Code

3. Ticket Designator

4. Certificate Number

5. Miscellaneous Support

6. Waiver Code

7. Back Office Remarks

Modifications to transactions in IAR must be performed within the next business day IAR modification window:

1. Sales, exchanges and refund transactions loaded into IAR from the GDS may be modified by 11:59 p.m. ET

through the first business day after the issuance of the sale.

2. Sales, exchanges and refunds transactions manually entered into IAR may only be modified by 11:59 p.m.

ET of the same day of entry into IAR.

Modifications to MCOs, ARC Pay (TASF), Debit Memos, Credit Memos, Recall Commission Statements, and

Agent Automated Deduction (AAD) transactions may be made until the IAR sales report submission deadline

of 11:59 p.m. ET on Tuesday after the sales report PED.

At the Sales Report screen:

1. Click the Modify tab.

2. Click the TM-Transaction button.

3. Type the document number in the 10-Character Document # textbox.

4. Click the GO button.

5. The Financial Details screen displays.

6. Make any necessary modifications.

7. Click the ET button to end transaction and save any changes.

8. Click the IGNORE button to move to the Ignore Transaction confirmation screen. If the YES button is

used, all changes are lost.

Note: The document hyperlinks listed on the Sales Report go to the transactions in modify mode unless:

1. It is past the void/modify window date.

2. The Sales Report is already submitted.

3. The user does not have access rights to modify the transaction.

Modifying a Commission

IAR allows the user to change the commission amount or commission percentage on an error-free non-exchange

sale if the void/modification window has not passed. Once the void/modification window has closed, no modifications

to commissions can occur.

The business rules for modifying commission are:

1. Commissions on GDS-issued sales transactions may be modified in IAR by 11:59 p.m. ET through the first

business day after the issuance of the sale.

2. Commissions on sales transactions manually entered into IAR may be modified only by 11:59 p.m. ET of the

same day of entry into IAR.

3. Commission may not exceed the base fare, whether entered as either a dollar amount or commission

percentage.

The commission can be modified by using either the Modify tab, by using the EDIT COMMISSION button on the

Sales Report screen or by clicking the transaction link on the Sales Report page and moving to the commission

field.

To modify the commission percentage claimed on a transaction using the Modify tab, navigate to the Sales

Report screen and then:

1. Click the Modify tab.

2. Click the CM - Commission radio button.

3. Enter the new percentage into the CM - Commission textbox as a numeric value plus the letter “P” to indicate

percentage, for example 5P, 3.6P, or 3.65P (Do not use the “%” symbol). Commission percentage rates may

be entered in 1/100

percentage increments. When changing a commission by percentage, the maximum

value that may be entered is 40P.

4. Enter the 10-character document number.

5. Press the GO button to process the request.

To modify the commission percentage using a Sales Report transaction list, navigate to the Sales Report screen and

then:

1. Click the check box associated with the transaction(s) to modify.

2. Click the EDIT COMMISSION button.

3. The Edit Commission screen displays.

4. Enter the new percentage in the textbox as a numeric value plus the letter “P” to indicate percentage, for

example 5P, 3.6P, or 3.65P (Do not use the "%" symbol). Commission percentage rates may be entered in

1/100

percentage increments. When changing a commission by percentage, the maximum value that may

be entered is 40P.

5. Click UPDATE to update the commission on the transaction(s) and return to the original list of transactions on

the Sales Report screen.

6. Click CANCEL to clear the changes and return to the original list of transactions on the Sales Report screen.

The commission dollar amount can be modified by using either the Modify tab or by clicking a document link

from a Sales Report transaction list.

To modify the dollar amount of commission on a transaction using the Modify tab, navigate to the Sales

Report screen and then:

1. Click the Modify tab.

2. Click the CM - Commission radio button.

3. Enter the new commission dollar amount as a numeric value into the CM - Commission textbox (do not use the

"$" symbol), for example 10.00 or 10.0.

4. Enter the 10-character document number.

5. Click the GO button.

To modify the dollar amount of commission using a Sales Report Transaction List,

navigate to the Sales Report screen and then:

Click the check box associated with the transaction(s) to modify.

Click the EDIT COMMISSION button.

The Edit Commission screen displays.

Click the Commission radio button.

Enter the new commission dollar amount as a numeric value in the text box (do not use the "$" symbol).

Click UPDATE to update the commission on the transaction(s) and return to the original list of transactions

on the Sales Report screen.

Click CANCEL to clear the changes and return to the original list of transactions on the Sales Report screen.

Manually Adding a Transaction

Nearly all transactions can be issued and processed electronically and must be included in the IAR Sales

Report. However, ARC recognizes that there may be some transactions that must be manually added to the

Sales Report.

By manually entering a ticket into the system, IAR instantly records the document and automatically includes it

in the Sales Report. Listed below are the document types that can be manually entered into IAR:

• Automated documents which were not received from the GDS as part of the daily transmission

• Miscellaneous Charges Orders (MCOs)

• Agent Automated Deductions (AAD)

• Adjustment Memos - Credit Memo, Debit Memo, Recall Commission Statement

These documents may be added to the IAR Sales Report by using fill-in entry screens. These screens are

used to capture document-related information, such as fare and tax information, ticketing endorsements,

conjunction information, certificates etc. The information added to these screens is included in your IAR Sales

Report like other transactions that were added to the report electronically.

In rare instances, some automated documents may fail to load to IAR, either because the information was not sent

by the GDS or there was some other issue. You can use manually add these transactions in to your IAR Sales

Report. The screens you will encounter in IAR when you add a transaction to the Sales Report will differ depending

on the document type entered. What will stay constant is that for each transaction added, the first screen that needs

to be completed is the Financial Details screen.

You may add a transaction to the open Sales Report by selecting the Add tab at the top of the Sales Report screen.

By adding a transaction, IAR records the sale of the document and includes it with the weekly Sales Report for

submission to ARC.

Here are the basic steps you use on the Add tab to add a document to the Sales Report, navigate to the IAR Home

page screen and then:

Click the ARC# link to access a Sales Report.

Click the ADD tab.

The ADD tab default screen displays.

Select an ADD type radio button.

Type the issue date into the Date of Issue textbox and the document number into the 13-Character

Document# textbox.

Click the GO button.

The Financial Details screen displays.

Note: The same process is used to add any automated document that IAR may not have received from a GDS,

even though you issued the transaction through a GDS. The screens you encounter when adding transactions will

differ with each document type (such as the screen displayed for an E-ticket screen will be is different than the

screen displayed for an MCO document).

Financial Details Screen

The first screen that displays each time you add a transaction to the open Sales Report is the Financial Details

screen. This mandatory screen must be completed for each transaction added to the report. If another screen is

required to complete the transaction, you can access it by clicking the Next link on the Financial Details screen or

by clicking on any additional screen tabs shown on the Financial Details screen.

Itinerary/Endorsements Screen

The Itinerary/Endorsements screen is a mandatory screen for each straight sale transaction (that is not an MCO or

EMD). This screen captures segment-level itinerary information as well as information on endorsements/

restrictions and Back Office Remarks.

Manually Adding a Miscellaneous Charges Order (MCO) document

To manually add an MCO to the Sales Report you must complete the Financial Details screen and the

MCO Information screen.

To add the MCO, navigate to the Sales Report screen and then:

Click the ADD tab.

Click the TA - Document radio button.

Type the issue date into the Date of Issue textbox and the document number into the 13-Character

Document# textbox.

Click the GO button.

The Financial Details screen displays.

For instructions on completing the Financial Details screen see the section entitled Completing the

Financial Details Screen.

Click the MCO Information tab or the Next link.

The MCO Information screen displays.

For instructions on completing the MCO Information screen, see the section entitled Completing the

MCO Information Screen.

10.

Click the ET button to end the transaction and save the document to the Sales Report.

11.

Click the IGNORE button to close the transaction and cancel adding the document to the Sales Report.

Manually Adding an Agent Automated Deduction

An Agent Automated Deduction (AAD) is a request for reimbursement from an airline for an error in a transaction

that was reported in a previous Sales Report. It may be used to correct a mistake on a transaction in the Sales

Report (i.e., overpayment on a transaction, incorrect commission, etc.). To use an AAD, the transaction in which the

mistake was made must have been reported in an IAR Sales Report within one of the last 12 PEDs. An AAD is

included in the IAR Sales Report as a credit to the agency and information concerning the AAD is transmitted to the

appropriate airline through the ARC report settlement process.

An AAD can only be manually added to IAR because these documents cannot be issued through a GDS. An agent

may claim up to $25.00 on an ARC settled document but is limited to one AAD per document. Each refund,

exchange and AAD transaction relies on information that was reported in a previous or current Sales Report.ARC

will process AADs that are included in an IAR Sales Report; however, the agent is responsible for researching and

verifying the circumstances of the transaction. Entering the AAD in IAR does not imply that the airline agrees with

the amount or circumstances surrounding the AAD.

ARC stores detailed data from Sales Reports that were authorized and submitted. When an AAD is included in the

Sales Report, the IAR system searches the stored data for the fare, tax, total, commission and net remittance found

on the original transaction to which the AAD relates.

To manually add an AAD to IAR, navigate to the Sales Report screen and then:

Click the ADD tab

Click the TD-AAD radio button

Type the document number in the 13-digit Document# field. (It is not necessary to add Date of Issue for

Memos.)

Click the GO button.

The AAD screen displays.

Click the ET button to end transaction and save the document to the Sales Report.

Click the IGNORE button to close the transaction and cancel adding the document to the Sales Report.

Manually Adding an Adjustment Memo

Adjustment memos are issued by airlines regarding issues with previously reported transactions. Most airlines

participate in ARC's Memo Manager service which provides an automated way for ARC participating travel

professionals and airlines to electronically process and settle memos. ARC Memo Manager is one of the

applications in the suite of My ARC tools and is free of charge.

Memo Manager allows two-way communication between agencies and airlines, eliminates the need to manually

enter memo data into IAR and provides immediate access to memo status and information. Use of Memo Manager

is not mandatory; however, it is recommended especially since an airline may only distribute their memos through

Memo Manager.

If you need to settle an airline adjustment memo that was not generated through Memo Manager, you must

manually enter it into the IAR Sales Report.

There are four types of adjustment memos:

• Debit Memo - Airline claim for the amount owed by the agent (e.g., amount claimed for an unreported

sale). It appears in the Sales Report as a debit amount (positive amount).

• Credit Memo - Statement of amount payable by an airline (or supplier) to an agent. It appears in the

Sales Report as a credit amount (negative amount).

• Recall Commission Statement - Statement of the amount payable to the airline for a return of

commission on a ticket previously issued. It appears in the Sales Report as a debit (positive amount).

• Ticket Resolution Services (TRS) - TRS memos are debit memos issued by an airline for an airline-

identified unreported sale, flown and refunded, or a credit card chargeback transaction.

Manually Adding a Debit Memo or TRS Memo

A Debit Memo represents funds owed to the airline on a previous sale or for an unreported sale. It appears in

the Sales Report as a debit amount (positive amount).

To add a Debit Memo to IAR, navigate to the Sales Report screen and then:

Click the ADD tab.

Click the TA-Document radio button.

Type the document number in the 13-digit Document# field. (It is not necessary to add the Date of Issue for

Memos.)

Click the GO button.

The Debit Memo screen displays.

Click the ET button to end the transaction and save the document to the Sales Report.

Click the IGNORE button to close the transaction and cancel adding the document to the Sales Report.

Manually Adding a Credit Memo

A Credit Memo represents money due to the travel agency on a previous sale or for another reason. It appears in

the Sales Report as a credit amount (negative amount).

To add a Credit Memo to IAR, navigate to the Sales Report screen and then:

1. Click the ADD tab.

2. Click the TA-Document radio button.

3. Type the document number in the 13-digit Document# field. (It is not necessary to add the Date of Issue for

Memos)

4. Click the GO button.

5. The Credit Memo screen displays.

6. Click the ET button to end the transaction and save the document to the Sales Report.

7. Click the IGNORE button to close the transaction and cancel adding the document to the Sales Report.

Manually Adding a Recall Commission Statement

A Recall Commission Statement is a statement of the amount payable to the airline for the return of commission on

a ticket previously issued and reported. In order to report the recall commission statement, it must be added as a

transaction to the Sales Report.

To add a Recall Commission Statement to IAR, navigate to the Sales Report screen and then:

Click the ADD tab.

Click the TA-Document radio button.

Type the document number in the 13-digit Document# field. (It is not necessary to add the Date of Issue for

Memos.)

Click the GO button.

The Recall Commission Statement screen displays.

Click the ET button to end the transaction and save the document to the Sales Report.

Click the IGNORE button to close the transaction and cancel adding the document to the Sales Report.

Type A Certificates Screen

A ‘Type A’ Certificate is an airline-issued certificate giving authorization to issue a ticket at a reduced fare. It is

processed through IAR as a regular sale (straight sale) - not as an exchange. When the sale is issued, the

certificate number should be included in the Endorsements/Restrictions field using the following codes to identify the

data (this includes other waiver types as well).

• CE - Type A Certificate

• LT - Lost Ticket Application

• DE - Death Certificate

• WV - Waiver Code

• DR - Doctor's Note

Each certificate or code must be preceded and followed by one of the following special characters:

/ (Slash)

- (Dash)

* (Asterisk)

, (Comma)

Examples:

/CE9991234567890/

*WV123456789012345*

*CE0060691111111*

/CE0123456789012/WV98765432/

,DR987654321098765,CE0123456789012,

If certificate information is not received from the GDS (not included when issuing the ticket or in the wrong format),

you will need to manually enter the certificate into IAR.

100

It is recommended that you write the new ticket number on the face of that certificate and retain it for your records.

This documentation will assist you in the event that ARC or the airline inquires about the transaction. A copy of the

agent's coupon for each transaction is available in the ARC Document Retrieval Service (DRS). Please note: an

airline's document retention requirement may differ from ARC's document retention requirements.

If you receive an unnumbered airline certificate, you must still enter the certificate into IAR to advise the airline that

the fare shown on the ticket was calculated using a discount certificate. You will need to enter the three-digit carrier

code as the first three numbers of the certificate, followed by up to eleven (11) alphanumeric characters to describe

the coupon.

Example: 005ENTRCPNBOOK

IAR supports the use of up to 50 old Type A certificates in a single transaction. Since your GDS cannot support the

transmission of this many certificates to IAR, you would add the additional certificates using the More Certificates

link on the Financial Details screen (up to 4 certificates can be entered on the Financial Details screen). To add

additional Type A Certificates to IAR:

At the Financial Details screen,

Click the More Certificates link.

The Type A Certificates screen displays.

Enter up to 50 certificates on this screen.

Click the OK button to save entries.

Click CANCEL to return to the Financial Details screen and not save any entries.

Note: The first three digits of a certificate number

must be the carrier code followed by up to eleven

numbers or characters to describe the coupon.

101

Adding Other Documents

Adding a Document not received from a GDS

In the rare event that a ticket is not received via the data transfer from the GDS, you will need to manually enter

the transaction and its associated data into the IAR Sales Report.

Note: IAR functionality does not yet support the manual entry of an automated EMD. In the rare event that a GDS-

issued EMD is not received from the GDS and loaded into IAR, that document must be manually reported to the

airline. Full EMD functionality in IAR is planned for a future date.

Adding a Government Transportation Request (GTR) - Payable to Agent

Many federal government agencies purchase air transportation under the terms of a specific contract between the

government agency and the agent. Some contracts require the use of a Government Transportation Request (GTR)

as a form of payment and/or payment of commission for transactions. The terms of these contracts and the policies

for use of GTRs are individually administered by the airline.

It is important to remember that all GTRs must be reported in the IAR Sales Report as cash transactions.

To process a GTR payable to the agent, navigate to the Sales Report screen and then:

102

Click the ADD tab.

Click the TA - Document radio button.

Type the issue date into the Date of Issue textbox and the document number into the 13-Character

Document# textbox.

Click the GO button.

The Financial Detail screen displays.

Type Cash in the Form of Payment field.

Click the Next link or click the Itinerary/Endors screen tab to move to the Itinerary/Endorsements screen.

Type Gov't Travel - Refundable by agency only, GR' and the GTR number in the Endorsement

Restrictions textbox.

Click the ET button to end the transaction and save the document to the Sales Report.

10.

Click the IGNORE button to close the transaction and cancel adding the document to the Sales Report.

Adding a Government Transportation Request (GTR) - Payable to Ticketing Airline

To process a GTR payable to a ticketing airline, navigate to the Sales Report screen and then:

Click the ADD tab.

Click the TA - Document radio button.

Type the issue date into the Date of Issue textbox and the document number into the 13-Character

Document# textbox.

Click the GO button.

The Financial Detail screen displays.

Type GR' and GTR number in the Form of Payment field.

Click the Next link or Itinerary/Endors tab to access the Itinerary/Endorsement screen.

Click the ET button to end the transaction and save the document to the Sales Report.

Click the IGNORE button to close the transaction and cancel adding the document to the Sales Report.

Adding a Duplicate Ticket Number

An agent should not attempt to manually add a ticket with the same document number as another ticket into the

IAR Sales Report or to additional Sales Reports of multiple-location agencies.

When a ticket is manually added to the Sales Report the, IAR system checks all available Sales Report PEDs

(including branch locations) for duplicate ticket numbers with the same date of issue. If an agent attempts to add a

transaction (using the Add tab on the Sales Report screen) which already exists in an active status, IAR will

display an error message that a duplicate exists and does not allow the duplicate ticket to be added.

Note: Commission on a GTR is claimed in the same

way as a normal cash sale. Handle the GTR coupon as

agreed between the government agency and the agent

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Duplicates are considered to be transactions that are not voided and belong to the requesting agency or its related

family agencies. Refunds and voids are not recognized as duplicates.

Refunding a Transaction

A customer may request a refund for a transaction issued on any ARC traffic document that has been reported.

The IAR system automatically accepts GDS-issued refunds that were generated using proper GDS formats. IAR

also allows you to view, modify and manually enter refund transactions in the Sales Report.

There are two types of refunds:

Full Refund - A wholly unused original document with no usage of flight/value coupons is returned for a

refund.

Partial Refund - A partially used original document where all remaining flight/value coupons are being

returned for refund.

Rules for Refunding

• A transaction issued on an ARC traffic document can only be refunded by the agency location that

originally issued the document, or by any agency within that agency organization (the Home Office

Location or any branch under that HOL).

• The refund can only be made to the original form of payment.

• The transaction can only be refunded to the person authorized to receive the refund.

• Before reporting a refund transaction in a sales report, you must ensure that the airline allows refunding

(ticket is refundable with or without a penalty, ticket not expired, etc.). If unsure, check with the individual

airline before issuing a refund.

• Refund of an electronic ticket (ET) transaction requires a valid Electronic Settlement Authorization Code

(ESAC).

o An ESAC is an acknowledgement by the airline of coupon availability and verification that the unused

coupons are closed out to prevent unauthorized use.

o An ESAC is automatically generated when an E-ticket is refunded in the GDS.

o An ESAC is also automatically generated when an E-ticket is manually entered into IAR for any airline

that supports IAR's ET refund functionality.

• When refunding a transaction, you are required to comply with any additional rules or instructions

regarding refund transactions that may be provided by the airline or ARC.

• It is recommended that agents process refunds directly in their GDS rather than adding the refunds

directly in IAR to ensure that the GDS has a record of the refund in the PNR, that the airline ET database

is updated, and that the refund is sent to IAR. Manual entry of refunds in IAR is a valid option; however, if

the airline does not support IAR ET refunds, the IAR refund does not update the GDS record nor the

airline’s ET database.

• If the airline supports IAR ET refunds, IAR and the airline’s ET database will be in synch, but the GDS

record is not included in the update. In most instances, when a refund cannot be processed in the GDS, it

is not available for refund. It is recommended to check the coupon status in the electronic record (ETR)

prior to processing the refund to ensure the coupon status is “OPEN.” If the refund is still not allowed, you

may need to contact the airline to determine the reason the refund request is being rejected.

• Refunds of electronic tickets for airlines that support IAR ET EDIFACT refund functionality cannot be voided

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unless the airline supports Cancel Refund functionality. If an airline supports Cancel Refunds, that refund

can only be canceled the same day the refund was issued.

• For a full list of airlines and their policies, please refer to ARC’s Airline Participation tool, which provides

a concise list of each ARC participating airline, their policies and processes related to ARC settlement

(including payment acceptance, refund/exchange processing validity, IAR ET Edifact support, and Airline

Direct participation). The tool can be found in Section 1 of this handbook.

Full Refund Entry

The following steps should be used to manually add a full refund in IAR.

Navigate to the Sales Report screen and then:

Click the Refund tab.

Click the RF - Full Refund radio button.

Type the document number to be refunded in the 13-character Document# textbox (3-character carrier

code plus 10-character ticket number).

Click the GO button.

The Refund Details screen will be displayed with all original information and financials pre-populated.

Verify that the information is accurate and make any changes necessary.

Click the ET button to move to the Confirm End Transaction screen. Click YES to end the transaction and

save all changes. Click NO to return to the Refund Details screen.

Click the IGNORE button to move to the Confirm Ignore screen. If you then select the YES button, all

changes made will be ignored (lost).

Please Note:

When you refund an electronic ticket (ET), the refund

status cannot be reversed unless the carrier supports

Cancel Refund functionality. If so, the void of the ET

refund must take place the same day the refund was

issued.

Otherwise, if you wish to reinstate a voided refund, you

must contact the carrier to change the ET coupon status

from RFND back to OPEN and then re-enter the refund

request through your GDS or IAR.

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Partial Refund Entry

The following steps should be used to manually add a partial refund in IAR:

At the Sales Report screen:

Click the Refund tab.

Click the RP - Partial Refund radio button.

Type the document number to be refunded in the 13-character Document# box.

Click the GO button.

The Refund Details screen will be displayed with all information pre-populated except for the financial detail.

Verify that the information is accurate and enter the financial values of the unused coupon(s). Be sure

to include the base fare, tax breakdown, total, commission and any penalty or waiver code if

applicable,

Click the ET button to move to the Confirm End Transaction screen. Click YES to end the transaction and

save all changes. Click NO to return to the Refund Details screen.

Click the IGNORE button to move to the Confirm Ignore screed. If the YES button is used, all

changes are ignored and cannot be recovered.

For a complete listing of all IAR field names and definitions, see the glossary at the end of this section.

Refund Application

The Refund Application is automatically generated and displayed to you upon successful completion of an error-

free refund. The Refund Application serves as both confirmations that the refund has been processed in your

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sales report and as a customer receipt if needed. All information on the Refund Application screen is pre-

populated and summarizes the refund transaction. Note that "Refund Subject to Carrier Audit" appears on the

Refund Application because the refund may be verified by the carrier for validity and accuracy.

At any time after the refund has been created, the Refund Application screen can be redisplayed for a manually

entered refund, or for a refund that was loaded to IAR from the GDS, by following these steps:

At the Refund Details screen:

• Click the Refund Application button located next to the Status field.

• The Refund Application screen displays showing a recap of the refund details.

• Click the CLOSE button to return to the Refund Details screen.

Refunding a Split Payment Exchange Transaction

When a client requests the refund of a split payment exchange transaction, it may not be possible to process the

refund through the sales report. Electronic ticketing rules require that any refund request must action all remaining

flight coupons in a single transaction. Industry resolutions also require that a refund be returned to the original form

of payment. However, ARC’s systems support only one form of payment in a single transaction so when more than

one form of payment is involved, the refund may require special handling.

When a split payment exchange involves a cash form of payment and one credit card form of payment, the refund of

that transaction will load to IAR with a form of payment error. It is not possible to clear the IAR error because the full

refund amount cannot be returned to either cash or the credit card form of payment used in the exchange. Again,

because ARC supports only one form of payment in a single transaction, refunding a split payment exchange to one

cash and one credit card form of payment is not possible without assistance either from the airline or from ARC.

When a split payment exchange involved two credit card forms of payment, the GDS refund of that transaction will

load to IAR error-free because IAR allows the refund amount to be returned to either of the two credit cards used in

the exchange. When entering a refund for a split payment exchange into IAR manually, you will be prompted to

enter a form of payment. Like the GDS-loaded refund, IAR will allow the refund amount to be returned to either of

the two credit cards used in the exchange. However, industry resolutions require that any refund be returned to the

original form(s) of payment, which means that refunding the full amount to just one credit card may result in the

airline issuing a debit memo for your agency.

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Recommended Practice for Refunding a Split Payment Exchange Transaction

For the proper processing of the refund of a split payment exchange, ARC recommends that travel agents submit a

refund request directly to the validating carrier so that the airline can return the correct refund amounts to each of

the original forms of payment.

There are two alternative options to the above-recommended practice of submitting the refund of a split payment

transaction directly to the airline; however, each has the risk that the airline may issue a debit memo to your agency.

Alternative Options for Refunding Split Payment Exchange Transactions

Alternative 1

The first alternative option for refunding a split payment exchange is to exchange that document for two new MCOs

(or EMDs) and to then refund separately those two MCOs/EMDs, one to each original form of payment. Note: This

method may not be supported by all airlines.

To proceed with this first alternative refunding option, follow these steps:

1. Issue a new MCO or EMD in exchange for the original split payment exchange document.

a. The new MCO should be issued in the amount being returned to the first form of payment used in the

original split payment exchange.

b. The new MCO should use the first form of payment used in the original split payment exchange.

2. Issue a second MCO or EMD.

a. The second new MCO should be issued in the amount being returned to the second form of payment

used in the original split payment exchange.

b. The second new MCO should use the second form of payment used in the original split payment

exchange.

3. After those two new MCO or EMD transactions load to IAR the following day:

a. Manually link the second MCO as a new document to the first MCO exchange transaction.

b. The result should be an even exchange (the value of the two new MCOs equals the amount of the original

split payment exchange).

4. The form of payment for an even exchange transaction must match the form of payment of the original

document. While the words EVEN or CASH may also be used as the form of payment for a zero value even

exchange transaction, use of the original FOP is preferred, especially if that FOP was a credit card. Use of

the original FOP streamlines any future exchange or refund of the even exchange document.

5. After the even exchange has been successfully created, create two refunds, one for each new MCO or EMD.

Alternative 2

The second alternative option for refunding a split payment exchange transaction is to request ARC’s assistance. ARC’s

Customer Care Center staff will create two separate partial refund shells to process a refund to each original form of

payment.

NOTE: This option requires that the split payment exchange must have more than one coupon that is being refunded.

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• Two separate partial refund shells cannot be created if the document refunded is either a one-way ticket with

only one segment (coupon) or a single unused coupon from a multi-segment itinerary.

• When only a single coupon is being refunded from a split payment exchange, that refund must be settled

directly with the validating airline as an exception transaction.

To proceed with this second alternative refunding option, follow these steps:

1. Process the refund in your Global Distribution System (GDS).

a. When possible, use a GDS refund entry that does not send a refund message to IAR to close out the

unused coupons in the airline’s database.

b. When the unused coupons have not been flown or used, and the airline accepts the GDS refund request,

the coupon status in the airline's ET database will be updated from “O” / “OPEN” to “R” / “Refund”.

c. The airline will respond to the GDS refund request with an Electronic Settlement Authorization Code

(ESAC), signifying acceptance of the refund.

2. Contact ARC’s Customer Care Center the next business day after issuing the GDS refund to request ARC’s

assistance.

a. When a GDS entry is used that does not send a refund message to ARC, the refund will not appear in

IAR.

b. When a GDS refund entry does send a refund message to IAR and the original exchange payment

involved one cash and one credit card form of payment, it will appear in IAR with an error status and an

error message that the refund value has been exceeded. ARC will void the refund transaction (in IAR

only) and replace that voided refund with two partial refund ‘shells,’ one for each form of payment.

c. When ARC voids a refund on behalf of an agency, the void action occurs only in IAR and does not update

the airline’s ET Database, which retains the transaction’s refund status. Note: Refunds manually entered

by ARC on behalf of an agency that were not first refunded in the GDS will not update the carrier’s ET

Database and may result in a debit memo.

3. Each partial refund transaction shell created by ARC will be flagged with an IAR error status. You can clear

that error by manually entering the following:

a. The refund values totaling the amount being returned to the form of payment in each partial refund shell.

b. The original form of payment for each partial refund shell.

c. The original airline issued ESAC (electronic settlement authorization code) from the GDS refund for each

partial refund shell.

d. Any penalty amount or waiver code that may apply.

Exchanging a Transaction

Exchanging transactions is the process used to issue new document(s) using an old document or documents as

either full or partial payment. This process may be necessary when a customer requests a change in their airline

schedule or itinerary or requires some other change that requires that a new document be issued.

The IAR system automatically accepts GDS-issued exchanges that were generated using proper GDS formats. IAR

also allows you to view, modify and manually enter exchange transactions in the Sales Report. Reporting an

exchange to IAR records the exchange transaction and includes it with the weekly Sales Report submission.

IAR allows exchanges to be viewed, modified, or added in the Sales Report using fill-in screens. These screens

allow you to view, modify or add document-related information, such as fare, tax information, administrative

penalty, and commission on administrative penalty into the IAR Sales Report.

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There are two types of exchanges:

Full Exchange - A wholly unused original document with no usage of value coupons is presented for

exchange for a new document.

Partial Exchange - A partially used original document where all remaining value coupons are being

returned in exchange for a new document. It also includes non-ARC documents presented for exchange

(such as a Type B voucher or carrier non-transport document) if allowed by the carrier.

Either type of exchange will result in one of the following exchange form payment types:

1. Additional Collection

2. Refund with Exchange

3. Even Exchange

Rules for Exchanging

• A transaction issued on an ARC traffic document can only be exchanged by the agency location that

originally issued the document or by any agency within the agency organization (the Home Office Location

or any branch location under that HOL).

• A transaction issued on an ARC traffic document can only be exchanged for a new document issued on

the same carrier as the original document.

• If the exchange results in a refund, the resulting refund value can only be made to the original form of

payment.

• If the exchange results in an even exchange ($0.00), the form of payment must match the form of payment

of the original document. While the words EVEN or CASH may also be used as the form of payment for a

zero value even exchange transaction, use of the original FOP is preferred, especially if that FOP was a

credit card which will streamline future exchanges or refunds of the exchange document.

• Before reporting an exchange transaction in a sales report, you must ensure that the carrier allows the

exchange (ticket is exchangeable with or without a penalty, ticket not expired, etc.). If unsure, check with

the individual carrier before issuing the new exchange.

• Exchange of an electronic ticket (E-Ticket or ET) transaction requires a valid Electronic Settlement

Authorization Code (ESAC).

o An ESAC is an acknowledgement by the carrier of coupon availability and verification that the

unused coupons are closed out to prevent unauthorized use.

o An ESAC is automatically generated when an E-ticket is exchanged in the GDS

o An ESAC is NOT automatically generated when an E-ticket is manually created in IAR. You

must obtain the ESAC and enter it into IAR when creating the new exchange.

• When exchanging a transaction, you are required to comply with any additional rules or instructions

regarding refund transactions that may be provided by the carrier or ARC.

Full Exchange - Old Document

Exchanges load to IAR directly from the GDS. However, there may be times when you must add an old

document to an existing sale transaction to complete a full exchange:

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At the Sales Report screen:

Click the Document# to be modified into an exchange.

The Financial Details screen displays.

Move to the Exchanges: Old Document section of the screen.

Type the document number of the transaction to be exchanged (old document) in the Add 13-character

Old Document# textbox.

Click the box next to the Exchange All field to indicate that all coupons are part of the exchange.

The Add Old Document screen displays.

Verify the financial figures auto-filled from IAR history. Add any penalty and any ESAC.

Click the ADD button to add the document as an exchange in IAR.

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Once added, you may view the newly created Exchange Support screen.

10.

To see a summary of the exchange transaction, click the Exchange Summary tab.

11.

Verify the accuracy of the Exchange Summary information.

12.

Click the ET button to end the transaction and move to the Confirm End Transaction screen. If the YES button

is used, all changes are saved.

13.

Click the IGNORE button to move to the Confirm Ignore screen. If the Yes button is used all changes are lost.

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Full Exchange - New Document

Exchanges load to IAR directly from the GDS. However, there may be times when you link another document into an

exchange as a second new document (known as a companion exchange). This typically occurs when the exchange

results in a residual value (old non-refundable document has a higher value than the new document) and the airline

allows that residual value to be transferred to an MCO or EMD. To add a new document as part of an exchange:

At the Sales Report screen:

1. Click the Document# to be exchanged.

2. The Financial Details screen displays.

3. Move to the Exchanges: New Document section of the Financial Details screen.

4. Type the new document number in the Add 10-character New Document# box.

5. Click the box next to the Exchange All field to indicate that all coupons are part of the exchange.

6. Click the ADD button to add the new document to the exchange transaction.

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7. The Financial Details page will redisplay showing that the New Document has been added.

8. To see a summary of the exchange transaction, click the Exchange Summary tab.

9. Verify the accuracy of the Exchange Summary information.

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10. Click the ET button to end the transaction and move to the Confirm End Transaction screen. If the YES

button is used, all changes are saved.

11. Click the IGNORE button to move to the Confirm Ignore screen. If the YES button is used, all changes are

lost.

Exchange Summary Screen

The Exchange Summary screen is populated by the data received from the GDS or that you have entered into the

IAR Sales Report. It is a final recap of the details involved in an exchange. Except for the Adjustment field and the

Form of the Payment field, all other details on this screen are non-modifiable. The Adjustment field cannot be

populated by a GDS entry. It is an IAR-only field that serves a shortcut and refund override to reduce the amount of

a system-calculated refund. Entry of data in this field is only allowed when the exchange type is an Exchange with

Refund. To access the Exchange Summary screen:

At the Financial Details screen for the document used in the exchange:

Click the Exchange Summary tab.

The Exchange Summary screen displays.

Click the ET button to end the transaction and move to the Confirm End Transaction screen. If the YES

button is used, all changes are saved.

Click the IGNORE button to move to the Confirm Ignore screen. If the YES button is used, any changes are

lost.

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Remove a Document from an Exchange

There may be instances when an old or new document must be removed from an exchange transaction. Following

are the steps for removing either an old or new document from an exchange transaction.

To remove an old document from an exchange transaction, at the Financial Details screen:

Move to the Exchanges: Old Documents section of the screen.

Click the box next to the Document# to be removed (this places a checkmark in the box).

Click the "R" box located next to the check box.

The document is removed as part of the exchange.

To remove a new document from an exchange transaction:

1. At the Financial Details screen,

2. Move to the Exchanges: New Documents section of the screen.

3. Click the box next to the Document# to be removed (this places a checkmark in the box).

4. Click the "R" box located next to the check box.

5. The document is removed as part of the exchange.

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Partial Exchange

Partially used documents and non-ARC documents (Type B voucher or an airline non-transport documents) can

be used in a partial exchange.

To add a partially used old document or non-ARC document to a transaction and complete a partial exchange,

start at the Sales Report screen and then:

1. Click the Document# to be exchanged.

2. Move to the Exchanges: Old Document section of the screen.

3. Type the document number in the Add 13-character Old Document# textbox.

4. Leave the box next to the Exchange All field blank.

5. Click the ADD button to add the document as an exchange.

6. The Exchange Support screen displays.

7. Click the ET button to end the transaction and move to the Confirm End Transaction screen. If the YES

button is selected, all changes are saved.

8. Click the IGNORE button to move to the Confirm Ignore screen. If the YES button is selected, all

changes are lost.

For a complete listing of all IAR field names and definitions, see the glossary at the end of this section.

Exchanges with Non-Refundable Residual Value

An exchange with residual value is the result of exchanging an old non-refundable document for a new document

that is of a lesser value than the old document. When the airline allows this leftover, or residual, difference to be

transferred to an MCO or an EMD, IAR can systematically link that GDS-issued residual value document to its

associated exchange transaction in the sales report. When an exchange has two new transactions, the resulting

transaction is called a companion exchange and is identified in the IAR sales report with a transaction type code

of “CX”.

The IAR residual value document auto-linking feature reduces the manual effort required to identify and link

residual value MCOs and EMDs to their associated exchanges and reduces the number of IAR exchange errors.

The residual value document auto-linking feature applies only to residual value MCO or EMD received from the

GDS. It does not apply to an MCO or EMD which was manually entered into IAR by a user.

The process required for IAR to perform the link is slightly different between a residual value MCO and a residual

value EMD.

For IAR to auto-link a residual value MCO to its exchange transaction, you must do two things before issuing the

MCO in the GDS:

1. Enter the new exchange document number in the "Issued in Connection With" (ICDN) field of the MCO.

• The new exchange document number must be 13 digits (3-digit carrier code and 10-digit document

number).

• The 3-digit carrier code must match that of the exchange document number.

2. Enter the word "RESIDUAL" in the "Type of Service" or "Valid For" field on the MCO. In addition to the word

RESIDUAL, Amadeus users may also enter the word “FUTURE” in the "Type of Service" or "Valid For" field

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on the MCO. Using the word “FUTURE” in a different GDS will cause the MCO not to link to the exchange.

• Abbreviations or misspellings of the word "RESIDUAL" or "FUTURE" will cause the auto-linking feature

to fail.

• Because the residual value of the old document is carrier over or transferred to the new residual value

MCO, no Electronic Credit Card Billing (ECCB) is involved as long as the above two requirements are

met. If the word "RESIDUAL" or "FUTURE" is not part of the new MCO, the value of the MCO will be

charged to the credit card, as is done with other MCOs.

• Additional text may be entered in the Type of Service or Valid For fields in the GDS if desired, however,

the IAR link will not occur unless the word RESIDUAL is included (preferably as the first word), or the

word FUTURE is included for Amadeus users.

For IAR to auto-link a residual value EMD to its exchange transaction (implemented July 23, 2020), you must do two

things before issuing the EMD in the GDS:

1. Enter the new exchange document number in the “Issued in Connection with Document Number” (ICDN)

field of the EMD.

• The new exchange document number must be 13 digits (3-digit carrier code and 10-digit document

number).

• The 3-digit carrier code must match that of the exchange document number.

2. Enter one of the following 3-character “Reason for Issuance Sub Codes” (RFIS) on the new EMD:

• 99I - Residual Value

• 996 - Refundable Balance

• 98E - Non-refundable Amount

Automated linking of residual value documents is an IAR-only feature that works when a GDS-issued residual value

MCO or EMD is sent to ARC. While the linking criteria are displayed on the MCO Information screen in IAR, the

linking criteria is not displayed on the EMD transaction in IAR which currently uses the standard ET

Itinerary/Endorsements screen. In either case, it is important that the linking criteria is present when the residual

value MCO or EMD is issued in your GDS. While EMD-specific data elements are not yet displayed in IAR, ARC does

support full EMD settlement.

When the linking criteria are not present when received from the GDS, or the linking criteria are incorrect, you will

need to manually link the residual value MCO or EMD to the new exchange. If not linked to the new exchange

transaction, your customer will be charged for the value of the residual value document instead of having that value

for use as a credit for future travel.

NOTE: The next-day modification window applies to exchanges, so this means you have one business day to verify

the accuracy of your exchanges, including linking any residual value exchange MCO or EMD to its associated

exchange. Consequently, it is highly recommended that a residual value document should be issued the same day as

the new exchange document. This is necessary so that IAR can automatically link the two documents together as a

companion exchange before the new ticket in the exchange is locked down and reported to the airline.

Occasionally, the auto-link may fail due to unforeseen system issues. In such cases, you will need manually link the

residual value MCO or EMD to its associated exchange transaction. When a residual value document is issued in a

different sales week than the exchange from which it originated, neither an automated link nor a manual link is

possible because the two documents must be in the same sales report PED.

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Split Payment Exchange Transactions

A split payment exchange transaction occurs when a client wants to charge one portion of an airline journey against

one credit card and to charge the remaining portion either to another credit card or to cash or check. However,

ARC’s systems currently support only one form of payment in a single transaction.

To process two different forms of payment for a single journey, that trip must be processed as two separate

transactions. The agent can collect one form of payment using an MCO (or EMD if supported by the airline) listing

“Split Payment” as the reason for issuance or type of service. The second form of payment is collected by issuing a

new add/collect exchange using the first MCO or EMD as the old document at the time the air portion of the journey

is issued. Verify the MCO and EMD acceptance policy on the issuing airline before creating a split payment

exchange transaction.

Note: When a carrier does not allow any residual value

resulting from an exchange to either be transferred to

an MCO or EMD for future use or does not allow the

residual value to be applied to any exchange

administration fee/penalty, this is known as forfeited

value or a "Use It or Lose It" exchange. However,

before you issue the new ticket in this type of exchange

situation, it is recommended that you increase the

exchange penalty amount to include the residual value

so that the new exchange interfaces to IAR for the

correct exchange value. If you do not increase the

penalty amount before issuing in your GDS, you will

need to manually modify the exchange after it loads to

IAR to remove the residual value from the exchange.

For example, if a carrier imposes a $150 administrative

fee (exchange penalty) and does not permit a residual

value of $200 to be issued to an MCO or applied to the

$150 penalty, you should invoice the exchange in your

GDS with a penalty amount of $350 so that the

exchange interfaces correctly and error-free to IAR. If

you do not do this, the exchange will load to IAR as an

exchange with a refund value of $50.00. You have

one business day to verify the accuracy of all sale,

refund, and exchange transactions.

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To refund a split payment exchange transaction, please see the section Refunding a Transaction.

Voiding a Transaction

Voiding a Transaction in the Sales Report on the Sales Report Screen

Transactions voided in your GDS will be reflected as voids in IAR the following day. You can also manually void

documents directly in IAR for immediate review, although ARC highly recommends that all ticket activity be

processed in your GDS to ensure that all information is correctly updated in both the PNR and electronic ticket

record, and that the ticket’s coupon status is correctly updated to VOID.

A document that has been voided will reflect a status code of "V" on both the List Transactions and List Voids

screens. Because a void status takes precedence over all other status types, the "V" status code is displayed

alone. Even though other transaction status types may apply to a document (such as "E" for error), these other

transaction status codes are no longer displayed after it is voided. However, any status that exists when you void

the document remains part of that transaction and is reinstated if you choose to reverse the void status.

Conversely, if an agent voids an E-ticket sale in IAR only, IAR communicates with the carrier to request a void and

obtain an ESAC (for participating Airlines) using EDIFACT messaging. If the void request from IAR is approved,

the carrier issues an ESAC, updates the ticket status to void in their database and returns the void confirmation

and ESAC to IAR. IAR then automatically updates the Sales Report.

As mentioned earlier, while most carriers support voids of E-ticket sales transactions performed directly in IAR, not

all carriers support this method of the void. EDIFACT messaging does not support the void of E-ticket exchanges,

so voids of exchanges performed directly in IAR do not update a carrier’s database.

Note: All voids of an electronic ticket require an

Electronic Settlement Authorization Code (ESAC).

When a travel agent successfully voids an E-ticket

through a GDS, the carrier approves the void request,

issues an ESAC and updates the status of the

transaction in their E-ticket database to VOID. The

carrier then communicates this information back

through the GDS, which is then sent to IAR overnight

and automatically loaded into the IAR Sales Report.

This void process maintains synchronization between

the GDS, the carrier's e- ticket database and IAR.

Note: Use of a voucher, coupon, EMD or MCO in an

exchange transaction towards the purchase of a ticket is

not a split payment transaction. The value of a Type B

voucher or carrier non-transport document is non-

refundable.

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For a full list of airlines and their support policies, please refer to ARC’s Airline Participation tool, which provides

a concise list of each ARC participating airline, their policies and processes related to ARC settlement (including

payment acceptance, refund/exchange processing validity, IAR ET Edifact support, and Airline Direct

participation). The tool can be found in Section 1 of this handbook.

To void a transaction in IAR, at the Sales Report screen:

Click the check box associated with the transaction to void.

Click the VOID button.

The Void Confirmation screen displays.

IAR will obtain the ESAC on your behalf for E-tickets issued on carriers participating in IAR Edifact messaging. If

the carrier does not participate, you will need to enter the ESAC in the "If the selected document is an E-

ticket, please enter the ESAC:" textbox”.

Click Yes to add the void status.

Click No to take no action and return to the previous screen.

Note: If a carrier does not support IAR ET voids, it is the

agent's responsibility to obtain approval from the carrier

to void the transaction, as well as to obtain an ESAC

from the carrier to enter into IAR. Failure to obtain a

valid ESAC may result in the issuance of a debit memo

from the validating carrier.

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Void Reversal of a Transaction on the Sales Report

In some cases, you may reinstate a voided transaction (unvoid) in the IAR Sales Report with the Void Reverse option.

This option will reverse the void status of a document so that it is included back in the Sales Report. Most carriers do

not support void reverse functionality for E-tickets.

For a full list of airlines and their support policies, please refer to ARC’s Airline Participation tool, which provides

a concise list of each ARC participating airline, their policies and processes related to ARC settlement (including

payment acceptance, refund/exchange processing validity, IAR ET Edifact support, and Airline Direct

participation). The tool can be found in Section 1 of this handbook.

Note: It is not possible to reverse the void of any exchange in IAR and a refund may only be reversed if a carrier

supports Cancel Refund functionality, which must occur the same day as the refund.

To reverse a voided transaction, start at the Sales Report screen and then:

Click the check box associated with the transaction(s) to reverse the void.

Click the Reverse Void button.

The void status is removed from the transaction.

Cash and credit card transactions may be voided any time prior to the next business day void window deadline.

However, Electronic Credit Card Billing (ECCB) procedures apply to transactions issued with a credit card form of

payment.

The following rules apply to credit card voids:

• Any credit card sale must be voided on the date of sale to avoid a daily credit card billing to the customer's

credit card.

• If the same-day void is not possible, the transaction must be voided within the next business day.

Voiding a Transaction in the Sales Report using the Void Tab

The Sales Report screen's Void Tab contains the commands used to void or void reverse a transaction.

To access the Void tab, start at the IAR Home page screen and then:

Click the ARC# link to access a Sales Report.

The default Sales Report screen displays set to the List tab.

Click the VOID tab.

Select the desired Void type.

Type a document number into the 10-character Document# textbox.

Click the GO button.

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IAR Void/Modify Window

In most cases, a document may be voided or modified in IAR only through the next business day following document

issuance.

The IAR Void/Modify window sets the time frame for when documents can be voided or modified, including:

Any sale, refund, or exchange document loaded into IAR from the GDS may be voided through the first

business day after issuance. Ideally, a void should be completed in the GDS but may be performed manually

in IAR.

Any sale, refund, or exchange document manually entered into IAR may be voided only on the same day it is

entered into IAR.

Any sale, refund, or exchange document loaded into IAR from the GDS may be modified in IAR through the

first business day after the issuance of the sale.

A sale, refund, or exchange document manually entered into IAR may be modified in IAR only the same day it

is entered into IAR.

A commission on a GDS-issued transaction may be modified through the first business day after the issuance

of the sale.

A commission on a transaction manually entered into IAR may be modified in IAR only on the same day it is

entered into IAR.

Note: The void/modify window applies to sale, refund, and exchange documents. This includes all E-tickets, MCOs,

and EMDs. The void of an exchange or refund can be done only if the carrier supports that exchange void or cancel

refund functionality. If so, the void of the exchange or refund must typically take place the same day the exchange or

refund was issued. The void/modify window does not apply to ARC Pay transactions or adjustment memos (debit

memos, credit memos, recall commission statements), or AADs. Agents may void or modify ARC Pay or adjustment

memos until the sales report authorization deadline.

The chart shown below provides basic information on the void/modify window for documents issued or invoiced

through a GDS on a non-ARC holiday week. In the event of a holiday observed by ARC, the void/modify window is

extended one business day.

Note: A void made in the GDS must be completed by 11:59 p.m. local time and a void or modification made in IAR

must be completed prior to 11:59 p.m. Eastern Time. The timetable for voiding and/or modifying transactions is subject

to change or modification.

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Document Issued

IAR System Entry Date

Last Day to Void or Modify

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Monday

Saturday

Sunday

Monday

Sunday

Monday

The chart below provides basic information on the void window for sale, refund, or exchange documents that are

manually entered into the IAR Sales Report. The timetable for voiding and/or modifying transactions is subject to

change or modification.

Document Entered into IAR

Last Day to Void or Modify

Monday

Tuesday

Monday

Tuesday

Wednesday

Tuesday

Wednesday

Thursday

Wednesday

Thursday

Friday

Thursday

Friday

Saturday

Friday

Saturday

Sunday

Saturday

Sunday

Monday

Sunday

Monday

Unapplied Voids (ARC Automated Refund)

An unapplied void is an unusual event that occurs when IAR is unable to apply a GDS-generated void to the

corresponding Electronic Ticket sale. This can happen because the void message was received for a sale that has

already been refunded or exchanged. It can also happen when a void message was received after the void window

has already passed, and the sale was reported to the carrier.

In instances where the GDS void is received after the IAR void window has passed, ARC creates and processes an

ARC Automated Refund whenever possible. An ARC Automated Refund is a full refund of the original sales ticket

transaction and is displayed in IAR as a refund and sent to the validating ARC participating Airline. ARC provides an

exception/error code of "A" to indicate that ARC generated the refund displayed on carrier output and in DRS.

The main reasons for unapplied voids are due to one or more of the following "timing" issues:

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1. Time differences between the local time at the Agency and the local time at the GDS Data Center. The GDS

cut-off time for outputting transactions on the daily System Provider Reporting File (SPRF) sent to ARC may

be prior to 11:59 p.m. local time where the agency performed the void.

2. Timing of the receipt of SPRF files by ARC.

Agents may void a sales transaction until 11:59 p.m. local time the next business day after the sale was issued. GDS

Data Centers create the System Provider Reporting File (SPRF) that is sent to ARC to load to IAR. These SPRFs

contain all sales, void and refund activity performed in the GDS for that single day. Each GDS Data Center sends

their SPRF file to ARC every evening. Some of these GDS data centers are located in time zones other than where

their agency customers are located, which may cause a timing issue if the SPRF is sent to ARC prior to 11:59 p.m.

local time where the agent may still be issuing sales, refunds and voids. This timing difference means that GDS activity

is held an extra day before being sent to ARC.

While agents can issue GDS voids until 11:59 p.m. local time, the option of also performing the void in IAR is not

possible when IAR is unavailable. Each night between 3 - 4 a.m. ET, IAR is taken offline in order to perform regular

system maintenance and to load and process GDS SPRFs.

Example: On Tuesday at 11:30 p.m. Pacific Time, an agent located in California uses their GDS to void a sale

transaction that was issued on Monday. That agency's GDS has a Data Center located in Oklahoma (Central Time),

which had already sent their daily SPRF to ARC at 1 a.m. Central Time (11 p.m. Pacific, 2 a.m. Eastern). That void

won't be sent to ARC until the following day (Wednesday), which is past the standard next business day void window

which means the void message cannot be applied to the agent's IAR sales report. Instead, IAR will automatically

create an ARC Automated Refund on Thursday for the voided sale.

The ARC Automated Refund is normally created in the same sales report PED as the original sale; however, there

are times when the automated refund will be created in the following sales report PED. For example, when a GDS

void is performed late Monday evening Pacific Time against the sale of a ticket issued the previous business day

(Friday, Saturday or Sunday), that void may miss the GDS data cut-off window (varies by GDS). This means the GDS

cannot deliver the void message to IAR until the following Tuesday evening for processing Wednesday morning. This

is too late for ARC to apply the void or to create an automated refund in the same sales report as the original sale so

that the automated refund will be created in the next open sales report.

An ARC Automated Refund is not created for the void of a refund or the void of an exchange if received from a GDS

after the refund or exchange has already been reported to the carrier.

ARC Automated Refund General Business Rules:

1. An ARC Automated Refund cannot be modified or voided unless the transaction is in error.

2. The IAR Refund Details screen will display "ARC created document" to indicate the refund was generated

by ARC as a result of an unapplied void.

3. The refund ESAC field will display the ESAC contained in the original void. If the original void message did

not contain a void ESAC, the refund ESAC field will display, "ARCAUTOREF".

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Refund Details Screen with Original ESAC for an ARC Automated Refund

Refund Details Screen with System Generated ESAC for an ARC Automated Refund

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Preparing Your Sales Report for Authorization

The Sales Report contains all transactions issued and validated during the weekly sales report period. After you

have verified that the data contained in your Sales Report is valid and correct, the final step is to authorize the

report for submission to ARC.

You must authorize the Sales Report from the IAR Home Page screen. The authorization deadline for the

Sales Report is Tuesday at 11:59 p.m. Eastern Time (ET) on the Tuesday following the close of the sales

report period. When an officially recognized ARC holiday falls on a Monday or Tuesday, this regular

authorization deadline is extended to Wednesday at 11:59 p.m. ET on the Wednesday following the close of the

sales period.

Clicking the authorize command is your approval of the Sales Report and serves as your authorization of the

settlement amount (net remittance amount) and of ARC's draft of that amount either to or from your bank account.

When you click the Auth/Submit button and type in your password to authorize your report, you have electronically

advised ARC that your report is complete and accurate.

If you fail to authorize your sales report by Tuesday at 11:59 p.m. ET (or Wednesday at 11:59 p.m. ET for ARC

recognized Monday or Tuesday holidays), any transactions in an error status are rolled (automatically moved) to

the next open sales report. Consequently, these errors cannot be corrected in the current unauthorized sales

report and must be corrected in the next open sales report.

Viewing Sales Report Totals

There are four different reports that summarize the transactions in your IAR Sales Report which are designed to

help you review the sales report data prior to submission to ARC. These four reports are:

1. Financial Summary

2. Financial Detail

3. List Counts

4. Total Counts

NOTE: Carriers may charge late reporting fees for any

transaction contained in a sales report that is authorized

after Tuesday at 11:59 p.m. ET.

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As with IAR's List Transaction functionality previously described, qualifiers can be used with these four reports

to assemble more specific report lists. However, because working with Sales Reports is different than working

with transactions, there are a few differences in the qualifier categories.

There are four qualifier categories that can be used for summarizing Sales Report data. The four qualifier

categories are:

1. Access Group

2. ARC#

3. PED (Period Ending Date)

4. Sales Report Status

Viewing a Sales Report with Transaction(s) in Error

To view a list of Sales Reports that contains transactions in error, at the IAR Home page screen:

Click the Sales Report Status drop down box.

Click E - Error or type the first letter of the qualifier in the combo box to bring it to the top.

The E - Error status displays in the Sales Report Status textbox.

Click the CREATE LIST button.

A list of only those Sales Reports that contain errors displays.

Click the Print/Save button to print or save the list.

Viewing Authorized Sales Reports

To view a list of authorized Sales Reports, at the IAR Home page screen:

Click the Sales Report Status drop down box.

Click A - Authorized or type the first letter of the qualifier in the combo box to bring it to the top.

The A - Authorized status displays in the Sales Report Status textbox.

Click the CREATE LIST button.

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A list of only those Sales Reports which have been authorized displays.

Click the Print/Save button to print or save the list.

Viewing Unsubmitted Sales Reports

To view a list of unsubmitted Sales Reports, at the IAR Home page screen:

Click the Sales Report Status drop down box.

Click W - Unsubmitted or type the first letter of the qualifier in the combo box to bring it to the top.

The W - Unsubmitted status displays in the Sales Report Status textbox.

Click the CREATE LIST button.

A list of only those Sales Reports that have not been submitted (authorized) displays.

Click the Print/Save button to print or save the list.

Viewing Sales Reports with No Activity

IAR allows for the viewing of a list of Sales Reports which have had no activity for that sales period.

To view a list of Sales Reports with no activity, at the IAR Home page screen:

Click the Sales Report Status drop down box.

Click N - No Activity or type the first letter of the qualifier in the combo box to bring it to the top

The N - No Activity status displays in the Sales Report Status textbox.

Click the CREATE LIST button.

A list of only those Sales Reports which have no activity displays.

Click the Print/Save button to print or save the list.

Viewing Sales Reports Counts - List Counts

Selection of the LC - List Counts option displays a list of specific transaction type counts for a location or locations.

This can be used in conjunction with the Access Group, ARC# and/or Sales Report Status drop down boxes to

create even more specific displays.

To select List Type - List Counts, at the IAR Home page screen:

Click the List Type drop down box.

Click List Counts or type the first letter of the qualifier in the combo box to bring it to the top.

The List Counts list type displays in the List Type box.

Click the CREATE LIST button.

Click the Print/Save button to print and/or save the list.

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Viewing Sales Reports Counts - Total Counts

Selection of the TC - Total Counts option displays a list of total counts for a location or locations. This can be used in

conjunction with the Access Group, ARC# and/or Sales Report Status drop down boxes to create even more specific

list displays.

To select a total counts list, at the IAR Home page screen:

1. Click the List Type drop down box.

2. Click Total Counts or type the first letter of the qualifier in the combo box to bring it to the top.

3. The Total Counts list type displays in the List Type box.

4. Click the CREATE LIST button.

5. Click the Print/Save button to print and/or save the list.

Viewing the Financial Details of an Individual Sales Report

The financial details of the following types of Sales Reports can be viewed in IAR:

• Any unsubmitted Sales Report.

• Any submitted Sales Report not past the Tuesday submission deadline.

• The last submitted Sales Report already past the submission deadline.

To view the financial details of an individual Sales Report, at the IAR Home page screen:

1. Under the Financial Summary section of the screen, click the ARC# link associated with the Sales

Report to view.

2. The financial details of the Sales Report display as the default view.

3. Click the Print/Save button to print and/or save the financial details of a single Sales Report.

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Viewing the Financial Details of Multiple Sales Reports

Agencies with multiple locations often need the ability to view the sales report financial details of each location in a

single output. This can be done by selecting the Print/Save button on the LF-Financial Detail display. This gives

agencies with multiple locations the option to create a report output that lists the individual sales report financial

details for each of their locations. The Print/Save option on the LF-Financial Detail list type works just as it does for

the LS-Financial Summary and LC-List Counts list types on the IAR home page.

The current LF-Financial Detail screen will continue to display the sales report financial details in a vertical view for a

single location or a summarized total of all locations under a Home Office Location (HOL) or a branch host. Only the

output delivered via the Print/Save button will produce a list of sales report financial details for multiple locations in a

horizontal view in either a spreadsheet or text format.

To produce the output, follow these steps on the IAR home page:

1. Select the LF-Financial Detail option from the List Type drop-down box.

2. Enter ALL in the ARC# field and the specific PED date (i.e., 20NOV16) in the PED field.

3. Select either: Save List in Spreadsheet Format or Save List in Text Format option and then, press the

PRINT/SAVE button.

4. A download pop-up will appear prompting you to either “Open” or “Save” the resulting file.

The LF-Financial Detail output will follow the standard hierarchy for agency family relationships associated with the

active IAR user:

• Standard (Default view) – ability to view that location plus all subordinate branches

• Home Office Location (HOL) – ability to view just the HOL or the HOL plus all of its branches

• Branch – ability to view just that branch location

• Access Groups – ability to view agency-created ARC Number Access Groups of locations outside of the

standard default view (ability to view only specific locations chosen by an IAR Administrator)

The resulting output will display the financial details for the selected locations in a horizontal list under the following

column headers:

• ARC#

• Status

• PED

• Cash Sales

• Cash Refunds

• Net Adjustments

• AAD

• Net Cash

• Credit Sales

• Credit Refunds

• Net Credit

• Total Fares

• Total Taxes

• Total Penalties

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• Total Exchange Adjustments

• Total Sales

• Net Cash

• Total Commission

• Net Remittance

Result Example:

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Viewing Financial Summaries of a Sales Report

You can view the financial summary totals of Sales Reports for one or more locations. Viewing the financial

summaries of multiple locations can be done for only one PED at a time. If the financial summary is for a single

ARC location, more than one PED can be shown. In this case, the financial summary display shows individual PED

dates along with the net cash, net credit, sales, and net remittance totals for each PED.

To view the financial summary for a single ARC location, at the IAR Home page screen:

Click the arrow located next to the Access Group box to select the appropriate access group.

Type the ARC# and PED to view

Click the List Type drop down box.

Select Financial Summary or type the first letter of the list type in the combo box to bring it to the top.

The Financial Summary selection appears in the List Type box.

Click the CREATE LIST button.

The Financial Summary list for the selected ARC# displays.

Click the Print/Save button to print and/or save the financial summary.

To view the Financial Summary for more than one ARC# location, at

the IAR Home page screen:

1. Click the arrow located next to the Access Group drop down box to select the appropriate access group.

2. Type the beginning ARC# in the Begin With box.

3. Click the List Type drop down box.

4. Select Financial Summary or type the first letter of the list type in the combo box to bring it to the top.

5. The Financial Summary selection appears in the List Type box.

6. Click the CREATE LIST button.

7. The Financial Summaries for the selected ARC#s displays.

8. Click the Print/Save button to print and/or save the financial summaries.

Note: Only agents with access rights to view financial lists may access Financial Summary lists.

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Submitting a Sales Report

As mentioned previously, the Sales Report should not be submitted if it contains any errors; however, if an error

cannot be corrected prior to the Tuesday 11:59 p.m. ET deadline, that error will be rolled (automatically moved) to

the next open sales report. It will be flagged with the dual status of OE for Out of Period and Error. For information

on correcting errors, see the section entitled Document Processing.

Once you determine that a Sales Report is complete and all errors that can be cleared are addressed, you must

submit the report. The Sales Report submission deadline is Tuesday at 11:59 p.m. ET following the close of the

Sales Report period.

To submit a Sales Report, at the IAR Home page screen:

Click the check box associate with the ARC# to authorize/submit.

Click the AUTH/SUBMIT button.

The Submit Sales Report screen displays.

Type your password in the Enter Password box.

Click the SUBMIT button to submit the report.

Click the CANCEL button to cancel the authorization and submission of the Sales Report and return to

the Sales

For travel agencies with multiple locations, the Authorize/Submit command may be used to authorize multiple sales

reports in a single PED by clicking the applicable check boxes.

Note: Only agents with access rights to both the

Financial List and Authorize/Submit can authorize/submit

the Sales Report.

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Authorize/Submit Confirmation of Submission Screen

Upon your submission of the Sales Report, IAR automatically generates a unique confirmation number for the

report which is displayed to the agent user who has authorized the report via the Authorize Submit Confirmation

screen.

Along with the confirmation number, the Authorize/Submit Confirmation Submission Screen displays the location

ARC#, sales report status, PED, username of the person authorizing the report, net cash, net credit and net remit

totals.

ARC strongly suggests that this confirmation information be retained as proof of Sales Report authorization. You

may choose to print the Authorize Submit Confirmation screen, or you may choose to print or save an electronic

copy of the LS - Financial Summary page which can list all authorized sales reports and their associated detail.

Reversing an Authorized and Submitted Sales Report

Accuracy is a key component of the IAR Sales Report. If you discover that changes are needed to a Sales Report

that has already been submitted, you may choose to use the Authorize Reverse command. The Authorize Reverse

command allows you to electronically retrieve the Sales Report from ARC, opening it back up to perform any

necessary changes. However, the Authorize Reverse command can only be used prior to the Tuesday at 11:50

p.m. ET sales report submission deadline.

Reversing the authorized status of a report restores your ability to add, modify, or delete transactions information

that the report contains (provided the void/modify windows have not passed). Once an authorized sales report is

reversed, it is no longer authorized. The old confirmation number will no longer be valid, and a new confirmation

must be obtained by re-authorizing/re-submitting the Sales Report prior to the Tuesday at 11:59 p.m. ET submission

deadline.

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Although the Authorize/Submit command may be used to submit multiple Sales Reports, this option is not available

with the Authorize Reverse command which requires that only one report may be reversed in a single command.

The Authorize Reverse command applies only to a single ARC# and PED.

To reverse the authorization of a Sales Report prior to the submission deadline, at the IAR Home page screen:

1. Click the box associated with the ARC# to Reverse Authorize/Submit.

2. Click the "R" box located under the Rev A/S heading.

3. The Reverse Authorize Status screen displays.

4. Type the confirmation number received from the original Authorize/Submit in the Enter Confirmation

Number textbox.

5. Type your password in the Enter Password textbox.

6. Click the SUBMIT button to submit the reverse authorize/submit of the Sales Report.

7. Click the CANCEL button to cancel the reverse authorize/submit of the Sales Report and return to the

Sales Report screen.

Note: Only agents with access rights to both Financial

List and Authorize/Submit can authorize/submit the

Sales Report.

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Reference and Glossary Information

IAR Screen Names and Descriptions

The following section describes each screen used in IAR along with a brief purpose of each screen.

Screen Name

Purpose of Screen

IAR Home

Default first page of the IAR application.

Submit Sales Report

Screen used to submit the Sales Report. A password is required to use this screen and

submit this report.

Authorize/Submit

Confirmation Submission

Screen

Screen displays all the confirmation information back to the agent for a Sales Report

that is submitted.

IAR Users

Default screen when the global Administration header is selected. Allows the

Administrator to manage IAR user profiles by adding, deleting, activating/inactivating

users. In addition, this is the screen where the Administrator assigns users to specific

ARC# access groups or user roles.

User Roles

Screen shows a list of user roles, the number of user members for specific ARC#

locations and the access rights of each role.

ARC# Access

Screen where the Administrator can create customized, more manageable location

groups with an ARC "family". Also allows the Administrator to grant or restrict access to

multiple locations for specific users.

ARC# Access Group

Profile

Screen is used to manage ARC# Access Groups by creating new groups, editing

existing groups or deleting groups.

Help

IAR Help System

Sales Report List (tab)

Default list screen appears when the List tab is selected. The List tab default screen is

used to create lists of transactions using IAR qualifiers.

Sales Report Modify

(tab)

Default modify screen appears when the Modify tab is selected. This is the screen

where a user can modify a transaction and modify commission by dollar amount or

percentage.

Sales Report Add (tab)

Default add document or AAD screen appears when the Add tab is selected.

Sales Report Refund tab

Default refund screen appears when the Refund tab is selected.

Sales Report Void (tab)

Default void screen appears when the Void tab is selected. This is the screen where a

user can void or void reverse a transaction.

Sales Report View Only

(tab)

Default View Only screen appears when the View Only tab is selected. This screen

allows a user to view a detailed transaction list, determine when a transaction was last

modified and find an old/used ticket. This screen does not allow a user to make any

modifications to the transactions.

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Screen Name

Purpose of Screen

Financial Details

Displays the financials of a transaction. Screen is used when adding or modifying a

transaction.

Itinerary/Endorse

Screen used to add or modify the itinerary or endorsements of a transaction.

Edit Commission

Screen where a commission is modified by dollar amount or percentage.

Confirm Void

Screen used to allow a user to review the transactions that have been requested to

void. If the YES button is clicked, the transactions are voided. If the NO button is

pressed, the transactions are not voided.

Confirm End Transaction

Screen used to confirm that a user intends to end a transaction. If the YES button is

clicked, the transaction is ended, and all changes are saved. If the NO button is

clicked, the transaction is not ended and returns to the Sales Report screen.

Confirm Ignore

Screen used to confirm that a user intends to exit a screen. If the YES button is clicked,

all charges are lost, and the user returns to the Sales Report screen. If the NO button is

clicked.

MCO Information

Screen used in conjunction with the Financial Details screen to manually add a

Miscellaneous Charges Order to the Sales Report.

Agent Automated

Deduction

Screen used to manually add an Agent Automated Deduction to the Sales Report.

Debit Memo

Screen used to manually add a Debit Memo to the Sales Report.

Recall Commission

Statement

Screen used to manually add a Recall Commission Statement to the Sales Report.

Refund Details

Displays the financials of a refund transaction. Screen is used when adding or

modifying a refund transaction.

Refund Application

The Refund Application is generated after an error-free refund is submitted and acts as

a confirmation that the refund has been accepted.

Exchange Support

Displays the financials of the exchange transaction. Screen is used when adding or

modifying an exchange transaction.

Exchange Summary

Displays summary exchange transaction information. Included are the new and old

document totals and the amount from the client.

IAR Field Names and Definitions

This section describes the individual IAR field names, the IAR screen on which each appears, and a definition of the

field.

Field Name

Screen

Definition

Enter Your ARC#

Administrator Contact

Information

The unique 8-digit ARC location code identifying a specific

travel office.

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Field Name

Screen

Definition

Administrator

Administrator Contact

Information

Name of the IAR Administrator.

Find...by

IAR User

Administration - IAR

Users tab

Search function used to find a user by last name, first name,

username, ARC# or status.

ARC#

IAR User

Administration - IAR

Users tab

The unique 8-digit ARC location code identifying a specific

travel office that is associated with a username.

Status

IAR User

Administration - IAR

Users tab

Status of the user. The status is either I - Inactive or A - Active.

ARC# Access

IAR User

Administration - IAR

Users tab

Links to the ARC# Access Group screen. Used to identify ARC#

Access Groups.

IAR Role

IAR User

Administration - IAR

Users tab

Links to the IAR Role screen of the user. The IAR role refers to

a user's rights to perform tasks.

View ARC#

IAR User

Administration - Users

Role tab

View an ARC location's list of user roles, the number of user

members for a specific ARC location and the access rights of

each role.

Roles

IAR User

Administration - Users

Role tab

Refers to the rights that are assigned to a user.

ARC#

IAR User

Administration - Users

Role tab

The unique 8-digit ARC location code identifying a specific

travel office.

# of IAR Users

IAR User

Administration - Users

Role tab

Count of the number of users assigned to a specific role.

Rights

IAR User

Administration - Users

Role tab

Refers to a user's rights to perform activities within and upon a

sales report(s) and an administrator's rights to manage users in

IAR.

Show Results

IAR Use Administration

- ARC# Access tab

When creating a list, a user can opt to view a list of 20, 50, 100,

250 or 500 results per page.

Find...by

IAR Use Administration

- ARC# Access tab

Search function used to find a list of user roles, the number of

user member for a specific ARC# location and the access rights

of each user.

140

Field Name

Screen

Definition

ARC# Access

IAR Use Administration

- ARC# Access tab

ARC#s assigned to a group name.

ARC#

IAR Use Administration

- ARC# Access tab

The unique 8-digit ARC location code identifying a specific

travel office.

# of IAR Users IAR User

IAR Use Administration

- ARC# Access tab

Count of IAR users.

Modified by

IAR Use Administration

- ARC# Access tab

Name of the Administrator who last made a modification to a

group.

Group Name

ARC# Access Group

Profile

Name of the ARC# Access group.

Available ARC#s

ARC# Access Group

Profile

ARC numbers from the selected and custom groups that are

available to be added to a new custom group.

Selected ARC#s

ARC# Access Group

Profile

ARC#s from the selected and custom groups that are selected

to make a new group.

Status

User Profile

Identifies the status of a user - either Inactive or Active.

Users ARC#

User Profile

The unique 8-digit ARC location code identifying a specific

travel office associated with a specific user.

Last Name

User Profile

Last name (surname) of the user.

First Name

User Profile

First name of the user.

User Profile

Email address of the user.

User Role

User Profile

Role assigned to the user.

Available Groups

User Profile

ARC numbers from the selected and custom groups that are

available to be added to a new custom group.

Selected Groups

User Profile

ARC#s from the selected and custom groups that are selected

to make a new group.

Access Group

IAR Home page

A collection of ARC#s.

ARC#

IAR Home page

The unique 8-digit ARC location code identifying a specific

travel office.

PED

IAR Home page

The 5-character alphanumeric code that indicates the Sales

Report period ending date. The format is DDMMM and it is

always a Sunday date.

Sales Report Status

IAR Home page

The status condition of the Sales Report. The Sales Report is

either A - Authorized, E - Error, N - No Activity or W -

Unsubmitted.

141

Field Name

Screen

Definition

List Type

IAR Home page

Category of the list transaction report. Types include: LS -

Financial Summary, LF - Financial Detail, TC - Total Counts,

and LC - List Counts.

Results

IAR Home page

When creating a list, a user can opt to view a list of 20, 50, 100,

250 or 500 results per page.

Net Cash

IAR Home page

Sum total of cash sales less refunds, plus or minus adjustment

memos and AADs.

Net Credit

IAR Home page

Sum of the credit sales less refunds equal the total net credit

value.

Net Remit

IAR Home page

Sum of the net cash sales, minus commissions, plus or minus

net adjustments.

Confirmation#

IAR Home page

Number returned by IAR as verification that the Sales Report

was submitted.

User

IAR Home page

Name of the user who submitted the Sales Report.

Date

IAR Home page

Date the Sales Report was submitted to ARC.

Time

IAR Home page

Time the Sales Report was submitted to ARC.

Trans

IAR Home page

Number of transactions in the Sales Report.

ARC#

Sales Report

The unique 8-digit ARC location code identifying a specific

travel office.

PED

Sales Report

The 5-character alphanumeric code that indicates the Sales

Report period ending date. The format is DDMMM and it is

always a Sunday date.

Status

Sales Report

IAR assigned the status condition of the sales report. Status

conditions include: E - Error, A - Authorized, N - No Activity and

W - Unsubmitted.

Document#

Sales Report

Number assigned to the document that includes the carrier

code, document number and check-digit.

Document Type

Sales Report

Type of ticket or document. Examples of document types are:

E-tickets, MCOs, debit memos and credit memos.

Transaction Type

Sales Report

Type of transaction. Examples of transaction types include: all

sales, refunds, exchanges, E-tickets, adjustment memos, and

waiver codes.

Form of Payment

Sales Report

The form of payment on a transaction; either a credit card

number, cash or check.

142

Field Name

Screen

Definition

Int'l Indicator

Sales Report

Indicates whether the transaction is for International (I) or

Domestic (D) travel. If left blank, IAR will assume domestic

travel.

Date Range

Sales Report

Range of dates that can be used for creating a list of

transactions. Selections include: PED, entry date, modified date

and void date.

Commission

Sales Report

Total dollar value of monies owed by a ticketing carrier to an

entity selling on its behalf.

Results

Sales Report

When creating a list, a user can opt to view a list of 20, 50, 100,

250 or 500 results per page.

Void ESAC

Sales Report

Electronic Settlement Authorization Code - When an agent

voids an e- ticket through the GDS, the carrier's ET database is

updated with a status of void and an ESAC is assigned by the

carrier is automatically loaded into the IAR Sales Report with

the void transaction. This void process keeps the carrier's ET

database and IAR in sync. If an ESAC code is associated with

the document, type the code in the ESAC textbox.

Transactions

Sales Report

Summary count of transaction statuses in a Sales Report

Printable List

Sales Report

Print/Save option in IAR. A user can print a list of transactions

or save the list to either a spreadsheet or text file.

Sales Report

Transaction Type. Type of transaction associated with a

document number.

Form of Payment

Sales Report

The form of payment on a transaction; either a credit card

number, cash or check.

Doc Total

Sales Report

Total dollar value of all flight coupons.

Comm

Sales Report

Total dollar value of monies owed by a ticketing carrier to an

entity selling on its behalf.

Int'l

Sales Report

Identifies the transaction as either an International sale (I) or a

Domestic sale (blank).

Net Remit

Sales Report

The amount due the carrier from the agent for a sale.

Entry Date

Sales Report

Date transaction was entered into IAR. Format is DDMMMYY.

Window Date

Sales Report

Void window date associated with a transaction entry date.

Void Date

Sales Report

The calendar date when a transaction is voided.

Commission by Percent

Edit Commission

Total dollar value of monies owed by a ticketing carrier to an

entity selling on its behalf. In this instance, allows a user to

enter a new commission amount by percentage.

143

Field Name

Screen

Definition

Commission by Amount

Edit Commission

Total dollar value of monies owed by a ticketing carrier to an

entity selling on its behalf. In this instance, allows a user to

enter a new commission by dollar amount.

TA - Document

List tab

Command used to add a transaction to the sales report (TA -

ticket add).

TD - AAD

List tab

Ticket Display - Agent Automated Deduction.

Document#

List tab

Number assigned to the document that includes the carrier

code, document number and check-digit.

TM - Transaction

Modify tab

Select to modify a transaction (TM - transaction modify).

CM - Commission Amount

Modify tab

Total dollar value of monies owed by a ticketing carrier to an

entity selling on its behalf. In this instance, select to modify the

commission on a transaction. Enter either a dollar amount or a

percentage.

Document#

Modify tab

Number assigned to the document that includes the carrier

code, document number and check-digit.

TA - Document

Add tab

Select to add a transaction to an open Sale Report (TA -

Transaction Add).

TD - AAD

Add tab

Ticket Display - Agent Automated Deduction.

Document#

Add tab

Number assigned to the document that includes the carrier

code, document number and check-digit.

RF - Full

Refund tab

Select to refund an entire transaction (RF - Refund Full).

RP - Partial

Refund tab

Select to refund only a portion of a transaction (RP - Refund

Partial).

Document#

Refund tab

Number assigned to the document that includes the carrier

code, document number and check-digit.

VA - Void

Void tab

Select to void a transaction in the Sales Report (VA - Void Add).

VR - Void Reverse

Void tab

Select to reverse the void of the transaction in the sales report

(VR - Void Reverse).

Document#

Void tab

Number assigned to the document that includes the carrier

code, document number and check-digit.

Document#

Financial Details

Number assigned to the document that includes the carrier

code, document number and check-digit.

Thru

Financial Details

The document number through range indicates a conjunction

ticket. Type the last three digits of the ending conjunction

document number in this field.

144

Field Name

Screen

Definition

Tran Type

Financial Details

Type of transaction. Examples of transaction types include: all

sales, refunds, exchanges, E-tickets, adjustment memos, and

waiver codes.

ARC#

Financial Details

The unique 8-digit ARC location code identifying a specific

travel office.

PED

Financial Details

The 5-character alphanumeric code that indicates the Sales

Report period ending date. The format is DDMMM and is

always a Sunday date.

Date of Issue

Financial Details

The date the document was issued. The format is DDMMMYY.

Entry Date

Financial Details

Date the document was entered into IAR.

E-Ticket

Financial Details

Click the box to indicate that the transaction is an E-ticket.

Void ESAC

Financial Details

Electronic Settlement Authorization Code - When an agent

voids an e- ticket through the GDS, the carrier's ET database is

updated with a status of void and an ESAC is assigned by the

carrier is automatically loaded into the IAR Sales Report with

the void transaction. This void process keeps the carrier's ET

database and IAR in sync. If an ESAC code is associated with

the document, type the code in the ESAC textbox.

Base Fare

Financial Details

The dollar value of the document excluding all taxes.

Equiv Amt

Financial Details

Equivalent Amount - The value of the ticket in the currency of

payment collected. This field is only completed when travel

originates outside of the US and the fare is issued in a currency

other than USD.

Currency Code

Financial Details

The code that is equivalent to the currency collected for the

payment of the ticket.

Bank Rate

Financial Details

The rate used to convert currency amount collected for payment

of a ticket if other than USD.

Tax Total

Financial Details

Total of Tax 1 - Tax 99 taxes on the tax break down and MORE

TAXES portion of the screen.

Total

Financial Details

The total dollar value of the document (fare plus taxes).

Commission

Financial Details

Total dollar value of monies owed by a ticketing carrier to an

entity selling on its behalf. It may also be entered as a

percentage.

Tax 1 - Tax 21

Financial Details

All of the individual taxes that apply to the transaction. The tax

code textbox is for the 2-character tax code of each individual

tax. The amount box is for the dollar amount of each individual

tax.

145

Field Name

Screen

Definition

More Taxes

Financial Details

When there are more than 21 taxes, select the MORE TAXES

option to view or add the additional tax codes and tax values.

The total of all taxes will be displayed in the Tax Total field.

PFC

Financial Details

The individual Passenger Facility Charge that applies to the

document. The format is to combine the 3-character airport

code with the dollar amount.

Form of Payment

Financial Details

The form of payment on a transaction; either a credit card

number, cash or check.

Approval Code

Financial Details

The approval code received from the credit card company when

a credit card is used.

Extended Pay

Financial Details

Indicates the use of the extended payment option available for

only American Express or Carte Blanche credit cards.

Misc Support

Financial Details

Miscellaneous Support - The conditional code used to indicate

when specific miscellaneous documentation supports the

transaction. Valid codes include: DE - Death Certificate, DR -

Medical Doctor's Note, WV - Advance Purchase Waiver, and LT

- Lost Ticket Application.

Waiver Code

Financial Details

Code assigned by an airline to a travel agent to waive a fee.

Type A Certificate

Financial Details

If a Type A Certificate is used in support of a document, type

the certificate number in the Certificate-1 textbox. If more than

four certificates are use, click MORE CERTIFICATES to access

the Type A Certificates screen.

Exchange Old Document

Financial Details

Field used to add an old document(s) to an exchange. Click the

Exchange All box to use all coupons in the exchange.

Exchange New Document

Financial Details

Field used to add a new document(s) to an exchange.

Service Carrier ID

Financial Details

The 4-digit code of the GDS providing the automated ticketing

service. In addition to the Service Carrier ID, a 1-digit code

indicating the method of ticketing must be used. Valid codes

include: ‘/' - tickets issued from a GDS and X - Tickets issued

from the agency's back office. Both fields must be left blank for

manually added tickets.

Self-Sale/Int'l Code

Financial Details

A code that denotes a self-sale and/or International sale on a

document. Valid codes include: X - International Sale, S - Self

Sale, X/S - Self Sale International (S/X may be used), and ( ) -

blank.

Int'l Sale Indicator

Financial Details

A 4-character code to indicate where the sale and the issuance

of the ticket took place in relation to the country of

commencement of international travel. Valid codes include SITI

146

Field Name

Screen

Definition

- Sold In/Ticketed In, SITO - Sold In/Ticketed Out, SOTI - Sold

Out/Ticketed In, SOTO - Sold Out/Ticketed Out, and ( ) - blank.

Fare Calculation

Financial Details

The details of the fare calculation exactly as it appears on the

document or fare ladder.

Document#

Itinerary/Endorsements

Number assigned to the document that includes the carrier

code, document number and check-digit.

Thru

Itinerary/Endorsements

The document number through range indicates a conjunction

ticket. Type the last three digits of the ending conjunction

document number are entered in this field.

Tran Type

Itinerary/Endorsements

Type of transaction. Examples of transaction types include: all

sales, refunds, exchanges, E-tickets, adjustment memos, and

waiver codes.

Status

Itinerary/Endorsements

Status of the transaction. Status can be O - Out of Period, V -

Void, E - Error, MDA - Modified, MCD - Commission Modified,

MDP - Pricing Modified, and MDN - Non-Pricing Modified.

ARC#

Itinerary/Endorsements

The unique 8-digit ARC location code identifying a specific

travel office.

PED

Itinerary/Endorsements

The 5-character alphanumeric code that indicates the Sales

Report period ending date. The format is DDMMM and is

always a Sunday date.

E-ticket

Itinerary/Endorsements

Click the box to indicate the transaction as an E-ticket.

Void ESAC

Itinerary/Endorsements

Electronic Settlement Authorization Code - When an agent

voids an E-ticket through the GDS, the carrier's ET database is

updated with a status of void and an ESAC is assigned by the

carrier is automatically loaded into the IAR Sales Report with

the void transaction. This void process keeps the carrier's ET

database and IAR in sync. If an ESAC code is associated with

the document, type the code in the ESAC textbox.

Passenger Name

Itinerary/Endorsements

The passenger’s name consisting of the surname, an oblique "/"

and the first name or first initial.

Tour Code

Itinerary/Endorsements

The tour code that identifies the tour package or carrier special

deal under which the document was issued. Not a valid field for

refunded documents.

Rec Loc

Itinerary/Endorsements

The GDS record locator number for the associated passenger

name record (PNR).

Coupon 1

Itinerary/Endorsements

Line identifier for the first itinerary segment.

Coupon 2

Itinerary/Endorsements

Line identifier for the second itinerary segment.

147

Field Name

Screen

Definition

Coupon 3

Itinerary/Endorsements

Line identifier for the third itinerary segment.

Coupon 4

Itinerary/Endorsements

Line identifier for the fourth itinerary segment.

X/O

Itinerary/Endorsements

A one-character field indicating the stopover code of the

scheduled travel segment. Valid codes include: X - Connection,

O - Stopover, V - Void, and ( ) - Blank.

From

Itinerary/Endorsements

The 3-character code of the itinerary segment origination.

Itinerary/Endorsements

The 3-character code of the itinerary segment destination.

Carrier

Itinerary/Endorsements

The 2-character code of the carrier providing the service for the

itinerary segment.

Flight

Itinerary/Endorsements

The flight number of the itinerary segment (up to 5-digits.

Class

Itinerary/Endorsements

The 1 or 2-character code indicating the class of service for the

itinerary segment.

Date

Itinerary/Endorsements

The date of travel for the itinerary segment (format is DDMMM).

Time

Itinerary/Endorsements

The time of departure for the itinerary segment (up to 5-digits).

Either 12 or 24-hour clock formats may be used.

Fare Basis

Itinerary/Endorsements

The fare basis/ticket designator for the itinerary segment.

Ticket Designator

Itinerary/Endorsements

A series of characters defining the entitlement of the passenger

based on the fare charged.

Issuing Agent ID

Itinerary/Endorsements

The identification or sign in of the agent issuing the document.

Endorsement/Restrictions

Itinerary/Endorsements

A free-form field to enter information when the fare carries any

special information or restrictive conditions relating to the use of

either the complete ticket or any of its coupons. Not a valid field

for refunded documents.

Back Office Remarks

Itinerary/Endorsements

A free-form field to enter remarks for the agency back-office

hand-off.

Document#

MCO Information

Number assigned to the document that includes the carrier

code, document number and check-digit.

Thru

MCO Information

Ending document# in a string of document numbers.

ARC#

MCO Information

The unique 8-digit ARC location code identifying a specific

travel office.

PED

MCO Information

The 5-character alphanumeric code that indicates the Sales

Report period ending date. The format is DDMMM and is

always a Sunday date.

148

Field Name

Screen

Definition

Passenger Name

MCO Information

The passenger’s name consisting of the surname, an oblique "/"

and the first name or first initial.

Issued in Conn

MCO Information

The related document number (including the carrier code and

the check digit) against which an MCO was issued.

Tour Code

MCO Information

The tour code that identifies the tour package or carrier special

deal under which the document was issued. Not a valid field for

refunded documents.

Type of Service

MCO Information

The type of service for which an MCO was issued.

To/AT

MCO Information

To whom the MCO is being issued.

Issuing Agent ID

MCO Information

The identification or sign in of the agent issuing the document.

Endorsement/Restrictions

MCO Information

A free-form field to enter information when the fare carries any

special information or restrictive conditions relating to the use of

either the complete ticket or any of its coupons.

Back Office Remarks

MCO Information

A free-form field to enter remarks for the agency back-office

hand-off.

Fare

Agent Automated

Deduction

The correct fare dollar amount is entered in the ‘Should Be'

textbox associated with the Fare field.

Total Tax

Agent Automated

Deduction

The sum of the individual taxes that match the document. The

correct total tax dollar amount is entered in the ‘Should Be' text

box associated with the Total Tax field. IAR supports up to 99

taxes.

Total Sales

Agent Automated

Deduction

Sum of base fares, all taxes and any penalties. The correct

dollar amount of the total sale is entered in the ‘Should Be' box

associated with the Total Sales field.

Commission Amount

Agent Automated

Deduction

Total dollar value of monies owed by a ticketing carrier to an

entity selling on its behalf. In this instance, the correct

commission dollar amount is entered in the ‘Should Be' textbox

associated with the Commission Amount field.

Net Remit

Agent Automated

Deduction

The correct net remit dollar amount is entered in the ‘Should Be'

textbox associated with the Net Remit field.

Amount Due Agency

Agent Automated

Deduction

The dollar amounts due to the agency.

Remarks

Agent Automated

Deduction

A free-form field to enter remarks for the agency back-office

hand-off.

Document#

Debit Memo

The document number of the original document to which the

debit memo refers. The 3-digit carrier number is pre-formatted

149

Field Name

Screen

Definition

and cannot be changed because it must match the carrier code

of the debit memo.

Tran Type

Debit Memo

Transaction type on the debit memo screen defaults to DM.

This field is non-modifiable.

Status

Debit Memo

The status condition of a document.

ARC#

Debit Memo

The unique 8-digit ARC location code identifying a specific

travel office.

PED

Debit Memo

The 5-character alphanumeric code that indicates the Sales

Report period ending date. The format is DDMMM and is

always a Sunday date.

Entry Date

Debit Memo

Date debit memo is entered into IAR.

Original Memo Date

Debit Memo

The date the debit memo document was issued by the carrier.

Format is DDMMMYY.

Issued to ARC Number

Debit Memo

The ARC number to which the debit memo was issued.

Amount Due To/From

Debit Memo

The dollar amounts due on the debit memo issued by the

carrier.

Remarks

Debit Memo

A free-form field to enter remarks for the agency back-office

hand-off.

Document#

Debit Memo

Debit memo document number.

Value

Debit Memo

The dollar amount of the debit memo.

Document#

Credit Memo

The document number of the original document to which the

credit memo refers. The 3-digit carrier number is pre-formatted

and cannot be changed because it must match the carrier code

of the credit memo.

Tran Type

Credit Memo

Type of transaction. Examples of transaction types include: all

sales, refunds, exchanges, E-tickets, adjustment memos, and

waiver codes.

Status

Credit Memo

The status condition of a document.

ARC#

Credit Memo

The unique 8-digit ARC location code identifying a specific

travel office.

PED

Credit Memo

The 5-character alphanumeric code that indicates the Sales

Report period ending date. The format is DDMMM and is

always a Sunday date.

Entry Date

Credit Memo

Date credit memo is entered into IAR.

150

Field Name

Screen

Definition

Original Memo Date

Credit Memo

The date the credit memo document was issued by the carrier.

Format is DDMMMYY.

Issued to ARC Number

Credit Memo

The ARC number to which the credit memo was issued.

Amount Due To/From

Credit Memo

The dollar amounts due on the credit memo issued by the

carrier.

Remarks

Credit Memo

A free-form field to enter remarks for the agency back-office

hand-off.

Document#

Credit Memo

Credit memo document number.

Value

Credit Memo

The dollar amount of the credit memo.

Document#

Recall Commission

Statement

The document number of the original document to which the

recall commission statement refers. The 3-digit carrier number

is pre-formatted and cannot be changed because it must match

the carrier code of the recall commission statement.

Tran Type

Recall Commission

Statement

Type of transaction. Examples of transaction types include: all

sales, refunds, exchanges, E-tickets, adjustment memos, and

waiver codes.

Status

Recall Commission

Statement

The status condition of a document.

ARC#

Recall Commission

Statement

The unique 8-digit ARC location code identifying a specific

travel office.

PED

Recall Commission

Statement

The 5-character alphanumeric code that indicates the Sales

Report period ending date. The format is DDMMM and is

always a Sunday date.

Entry Date

Recall Commission

Statement

Date recall commission statement is entered into IAR.

Original Memo Date

Recall Commission

Statement

The date the recall commission statement was issued by the

carrier. Format is DDMMMYY.

Issued to ARC Number

Recall Commission

Statement

The ARC number to which the recall commission statement was

issued.

Amount Due To/From

Recall Commission

Statement

The dollar amounts due on the recall commission statement

issued by the carrier.

Remarks

Recall Commission

Statement

A free-form field to enter remarks for the agency back-office

hand-off.

Document#

Recall Commission

Statement

Recall commission statement document number.

151

Field Name

Screen

Definition

Value

Recall Commission

Statement

The dollar amount of the recall commission statement.

Document#

Recall Commission

Statement

The document number of the original document to which the

recall commission statement refers. The 3-digit carrier number

is pre-formatted and cannot be changed because it must match

the carrier code of the recall commission statement.

Document#

Refund Details

Number assigned to the document that includes the carrier

code, document number and check-digit.

ARC#

Refund Details

The unique 8-digit ARC location code identifying a specific

travel office.

PED

Refund Details

The 5-character alphanumeric code that indicates the Sales

Report period ending date. The format is DDMMM and is

always a Sunday date.

Status

Refund Details

The status condition of the document. Statuses include: Out of

Period, Error, Void, Modified, Commission Modified, Pricing

Modified, and Non-Pricing Modified. The field is filled in by IAR

and will be blank when adding a new document.

Refund Type

Refund Details

Used to describe whether the refund is full or partial.

Passenger Name

Refund Details

The passenger’s name field consists of the surname, and

oblique "/" and the first name or first initial.

E-Ticket

Refund Details

Used to indicate if a ticket is an electronic ticket or non-

electronic ticket.

Date of Refund

Refund Details

Date the transaction is refunded.

ESAC

Refund Details

Electronic Settlement Authorization Code - When an agent

voids an E-ticket through the GDS, the carrier's ET database is

updated with a status of void and an ESAC is assigned by the

carrier is automatically loaded into the IAR Sales Report with

the void transaction. This void process keeps the carrier's ET

database and IAR in sync.

System Entry Date

Refund Details

Date the transaction first enters IAR.

Coupons

Refund Details

Coupon(s) numbers for each ticket.

Fare

Refund Details

The dollar value of the document excluding all taxes and

service charges.

Taxes

Refund Details

Total dollar value of the taxes associated with the refunded

document. IAR supports up to 99 taxes.

Total

Refund Details

Total unused value of the document being refunded.

152

Field Name

Screen

Definition

Admin/Penalty

Refund Details

Administrative or penalty fee assessed by the carrier to process

an exchange or refund.

Refund

Refund Details

Dollar value of the refunded ticket.

Commission

Refund Details

Total dollar value of monies owed by a ticketing carrier to an

entity selling on its behalf. In this instance, it is the commission

dollar amount of the document being refunded.

Comm Admin/Penalty

Refund Details

Collectable commission dollar amount on the administrative or

penalty fee. Note: If your GDS does not send IAR the penalty

commission amounts then you may manually add this to IAR by

clicking the ticket hyperlink or by using the Modify tab,

Transaction - TM command.

Tax 1-21

Refund Details

Tax breakdown for the document being refunded.

More Taxes

Refund Details

When there are more than 21 taxes, select the MORE TAXES

option to view or add the additional tax codes and tax values.

The total of all taxes will be displayed in the Tax Total field.

Tax Code

Refund Details

Code associated with the tax to be refunded.

Amount

Refund Details

Dollar value of the tax to be refunded.

PFC Code

Refund Details

Unused Passenger Facility Charge breakdown of the airport

code and dollar amount.

Form of Payment

Refund Details

The form of payment on a transaction; either a credit card

number, cash or check. In this instance, it is the original form of

payment to which the refund is to be applied.

Misc Support

Refund Details

Miscellaneous Support - A descriptive code used to indicate

when specific miscellaneous documentation supports the

document. Valid codes include: DE - death certificate, WV -

advance purchase waiver, LT - lost ticket form, and DR -

doctor's note.

Waiver Code

Refund Details

Code assigned by an airline to a travel agent to waive a fee.

Back Office Remarks

Refund Details

A free-form field used to add remarks to interface with an

agency's back-office system.

ARC#

Refund Application

The unique 8-digit ARC location code identifying a specific

travel office.

PED

Refund Application

The 5-character alphanumeric code that indicates the Sales

Report period ending date. The format is DDMMM and is

always a Sunday date.

Today's Date

Refund Application

Current date as displayed in IAR.

153

Field Name

Screen

Definition

Issue Date

Refund Application

Date the refund was entered into IAR.

Document#

Refund Application

Number assigned to the document that includes the carrier

code, document number and check-digit.

Passenger Name

Refund Application

The passenger’s name field consists of the surname, and

oblique "/" and the first name or first initial. In this instance it

refers to the name of the passenger as shown on the refunded

document.

Form of Payment

Refund Application

The form of payment on a transaction; either a credit card

number, cash or check. In this instance, it is the original method

of payment to which the refund was applied.

Total

Refund Application

Dollar amount of the refund plus any additional charges found

in the administrative or penalty fee fields.

Admin/Penalty

Refund Application

Administrative or penalty fee assessed by the carrier to process

an exchange or refund.

Refund

Refund Application

Total dollar amount of the refunded document.

New Document#

Exchange Support

A document number refers to the number assigned to the

document that includes the carrier code, document number and

check-digit. In this instance the field is pre-populated with the

new number and is non-modifiable.

ARC#

Exchange Support

The unique 8-digit ARC location code identifying a specific

travel office.

PED

Exchange Support

The 5-character alphanumeric code that indicates the Sales

Report period ending date. The format is DDMMM and is

always a Sunday date.

Exchanges: Old Document Portion of the Screen

Add 13-Character Old

Document#

Exchange Support

Old document number serving as a full or partial payment

toward the new document(s).

Exchange All

Exchange Support

Information is pre-populated. Box is checked is all coupons are

being exchanged (full exchange).

Document#

Exchange Support

A document number refers to the number assigned to the

document that includes the carrier code, document number and

check-digit. In this instance the document number is the old

document number and is non-modifiable.

Status

Exchange Support

The status condition of the document. The field will be blank

unless the document has one of the following conditions: The

status condition of the document. Statuses include: Out of

Period, Error, Void, Modified, Commission Modified, Pricing

154

Field Name

Screen

Definition

Modified, and Non- Pricing Modified. This is a non-modifiable

field.

Passenger Name

Exchange Support

The passenger’s name on the old document. The passenger’s

name field consists of the surname, and oblique "/" and the first

name or first initial.

Total

Exchange Support

Total dollar value of the old document. This is a non-modifiable

field.

Commission

Exchange Support

Total dollar value of monies owed by a ticketing carrier to an

entity selling on its behalf. In this instance, it is the commission

dollar amount on the old document. This is a non-modifiable

field.

Issue Date

Exchange Support

Date the document to be exchanged was issued. This is a non-

modifiable field

Exchange Info Portion of the Screen

Old Document#

Exchange Support

Information that is brought over from the Sales Report screen

listing the document number to be exchanged.

Electronic Ticket

Exchange Support

A check in the box indicated that the ticket is an E-ticket.

ESAC

Exchange Support

Electronic Settlement Authorization Code - When an agent

voids an E-ticket through the GDS, the carrier's ET database is

updated with a status of void and an ESAC is assigned by the

carrier is automatically loaded into the IAR Sales Report with

the void transaction. This void process keeps the carrier's ET

database and IAR in sync.

Exchange All

Exchange Support

A check mark in the Exchange All box indicates that the

exchange is a full exchange.

Coupons Total

Exchange Support

Listing of coupon numbers for the document being exchange.

Old Fare

Exchange Support

The dollar value of the unused portion of the document being

exchanged.

Old Taxes

Exchange Support

Total dollar value of the unused taxes from the old document.

Old Total

Exchange Support

The unused total to be exchanged from the old document.

Old Commission

Exchange Support

Total dollar value of monies owed by a ticketing carrier to an

entity selling on its behalf. In this instance, it is the amount of

commission based on the unused portion of the old document.

Admin/Penalty

Exchange Support

Administrative or penalty fee assessed by the carrier to process

an exchange.

155

Field Name

Screen

Definition

Comm Admin/Penalty

Exchange Support

The carrier authorized collectable commission on the

administrative or penalty fee. Note: If your GDS does not send

IAR the penalty commission amounts then they must be

manually added using the Modify tab, Transaction - TM

commands.

Tax 1-21

Exchange Support

Tax breakdown for the document being exchanged.

Tax Code

Exchange Support

Codes associated with the tax breakdown for the document

being exchanged.

Amount

Exchange Support

Dollar value of the taxes in the tax fields.

PFC

Exchange Support

Passenger Facility Charge breakdown of the airport code and

charge amount on the document being exchanged.

New Document#

Exchange Summary

A document number refers to the number assigned to the

document that includes the carrier code, document number and

check -digit. In this instance the new document number refers to

the number brought forward from the original agent input.

ARC#

Exchange Summary

The unique 8-digit ARC location code identifying a specific

travel office.

PED

Exchange Summary

The 5-character alphanumeric code that indicates the Sales

Report period ending date. The format is DDMMM and is

always a Sunday date.

New Document(s) Total

Exchange Summary

The sum of the new document(s) individual total values.

Old Document Total

Exchange Summary

The sum of the old document(s) individual total values.

New/Old Diff

Exchange Summary

The difference between the total value of all new document(s)

and total value of the old document(s). The difference may be

positive or negative.

Admin/Penalty Total

Exchange Summary

Administrative or penalty fee assessed by the carrier to process

an exchange. In this instance refers to the sum of individual

admin/penalty values of all the old documents.

Adjustment

Exchange Summary

A refund amount override field to reduce the amount of a

system calculated refund. Information can only be entered in

this field if the exchange type is refund.

Amount Due From Client

Exchange Summary

The dollar amount owed by the customer for the transaction.

Old Fare Total

Exchange Summary

Total dollar value of the fare on the old document.

Old Tax Total

Exchange Summary

Total dollar value of the taxes on the old document.

156

Field Name

Screen

Definition

Total New Commission

Exchange Summary

Total dollar value of monies owed by a ticketing carrier to an

entity selling on its behalf. In this instance, it is the sum of the

individual commission amounts of all the new documents.

Total Old Commission

Exchange Summary

Total dollar value of monies owed by a ticketing carrier to an

entity selling on its behalf. In this instance, it is the total dollar

value of the commission on the old document.

Commission Penalty

Exchange Summary

The sum of the individual commission penalty amounts of all the

old documents.

Commission Due To/From

Exchange Summary

The total commission amount owed to or due from the agency.

Form of Payment

Exchange Summary

The form of payment on a transaction; either a credit card

number, cash or check. In this instance, it is the method of

payment on the additional collection exchange or the payment

to which the refund exchange is to be applied.

Approval Code

Exchange Summary

The approval code received from the credit card company when

a credit card is used.

Extended Payment

Exchange Summary

Indicates the use of the extended payment option available for

only American Express or Carte Blanche credit cards.

ARC#

Create BOS Internet

File

The unique 8-digit ARC location code identifying a specific

travel office.

PED

Create BOS Internet

File

The 5-character alphanumeric code that indicates the Sales

Report period ending date. The format is DDMMM and is

always a Sunday date.

Summary File

Create BOS Internet

File

A file containing a list of transactions that can be loaded into the

user's back office.

Detail File

Create BOS Internet

File

A file that is created for a single transaction.

BOS Internet File

Create BOS Internet

File

A BOS file created by IAR and made available on the BOS tab

within IAR.

Status

Create BOS Internet

File

The status condition of the document. Statuses include: Out of

Period, Error, Void, Modified, Commission Modified, Pricing

Modified, and Non-Pricing Modified.

Document#

Create BOS Internet

File

The 10-character document number excluding the check digit.

Document Type

Create BOS Internet

File

Refers to the type of document. Document types include:

Miscellaneous Charges Order (MCO), Manually Added.

Document, Debit Memo, Credit Memo, Recall Commission, and

Electronic Ticket.

157

Field Name

Screen

Definition

Transaction Type

Create BOS Internet

File

Refers to the type of transaction. Transaction types include: All

Sales, All Refunds, Full Refunds, Partial Refunds, Cancelled

Refunds, Exchanges, Companion Exchanges, Adjustment

Memos, Agent Automated Deductions and System Cancelled

Voids.

Form of Payment

Create BOS Internet

File

The form of payment on a transaction; either a credit card

number, cash or check.

Int'l Indicator

Create BOS Internet

File

Indicates whether the ticket is for International or Domestic

travel.

System Provider

Create BOS Internet

File

Name of the Global Distribution System (GDS) providing the

automated ticketing service.

PED

Create BOS Internet

File

The 5-character alphanumeric code that indicates the Sales

Report period ending date. The format is DDMMM and is

always a Sunday date.

Modified Date

Create BOS Internet

File

Date the transaction was last modified in IAR.

System Entry Date

Create BOS Internet

File

Date the transaction was entered in IAR.

Void Date

Create BOS Internet

File

Date the transaction was voided in IAR.

Commission

Create BOS Internet

File

The commission dollar amounts due on the transaction. It may

also be entered as a percentage.

Carrier Code

Create BOS Internet

File

Two-character code of the carrier providing the service for the

itinerary.

BOS Summary File Fields

Ticketing Airline Code

BOS Summary File

The 3-character numeric code of the validating carrier.

Document Number

BOS Summary File

The Standard Traffic Document (STD) number printed or pre-

printed on the source document.

Check Digit

BOS Summary File

The check-digit routine is a device used to improve the

accuracy of data input of a series of numbers. The Modulus 7

check-digit routine is used for Standard Traffic Document Ticket

Numbers. The check-digit is calculated by dividing the

numbered series by seven and declaring the remainder to be

the check digit.

Date of Issue

BOS Summary File

The date the document was issued. The format is DDMMMYY.

158

Field Name

Screen

Definition

Back Office Remarks

BOS Summary File

This is an 84-character free-form field that agents may use to

send information back to their agency or BOS vendor or

provider. This information is not sent to carriers, an example of

use would be to record invoice number and/or client number for

matching to the agency’s BOS database or to convey

information for the front office entered into IAR back to the

agency’s BOS.

Conjunction Ticket

Indicator

BOS Summary File

A conjunction ticket is a continuation of the itinerary of the

previous ticket. The indicator field is populated with the last 3-

digits of the highest document number.

Error Status

BOS Summary File

A code that indicates that the transaction contains an IAR

identified error.

Void Status

BOS Summary File

Code that indicates whether or not the transaction is in a void

status. These transactions are not reported to ARC when the

report is authorized/submitted.

Unresolved Status

BOS Summary File

An indicator that is currently not used in IAR.

Out of Period Status

BOS Summary File

Out of period status indicator that occurs when the date of issue

is less than the beginning date of the PED.

Pending Status

BOS Summary File

An indicator that is currently not used in IAR.

Coupon Usage Indicator

BOS Summary File

Each document is comprised of a specific number of coupons;

this indicator gives the status of each flight coupon in the

document.

Ticket Document Amount

BOS Summary File

The total sale amount of the transaction as shown on the

document. Total Tax Amount.

Total Tax Amount

BOS Summary File

The sum of the individual taxes that match the document.

Commission Amount

BOS Summary File

The commission dollar amounts due on the transaction.

Modified Data Indicator

BOS Summary File

An indicator that is assigned to automated transactions that

come into IAR with an error status and the agent has to modify

a specific field.

Form of Payment Indicator

BOS Summary File

Indicator showing the type of payment used for the document -

either cash or credit card.

PNR Record Locator

BOS Summary File

The GDS record locator number for the associated Passenger

Name Record (PNR).

Returned Coupon Usage

BOS Summary File

The field is populated as follows: F - Full Refund, P - Partial

Refund, N - New Document in an Exchange, O - Old Document

in an Exchange, M - Adjustment Memo, and D - Disputed

Ticket.

159

Field Name

Screen

Definition

Cancellation Penalty

Amount

BOS Summary File

A fee collected on documents that are returned for an exchange

or refund based on the fare rule of the fare basis code.

Commission on

Cancellation Penalty

BOS Summary File

The commission earned when a document is returned or

exchanged when the ticketing carrier has imposed a penalty.

Primary Ticketing Airline

BOS Summary File

The 3-digit numeric carrier code number that validated the

ticket.

Primary Document

Number

BOS Summary File

The document number that IAR has assigned as the primary

new doc of an exchange or refund.

Primary Document

Number Check Digit

BOS Summary File

The check-digit of the primary document number of an

exchange, refund, or adjustment memo.

Primary Conjunction

Indicator

BOS Summary File

Indicates the last 3-digits of a new doc conjunction ticket in an

exchange or returned document in a refund.

Returned Document

Number

BOS Summary File

The document number being returned for an exchange/refund

transaction.

Returned Conjunction

Indicator

BOS Summary File

The indicator contains the last 3-digits of the returned document

number in a conjunction ticket for an exchange/refund

transaction.

Form of Payment Account

BOS Summary File

Account number associated with the form of payment.

STAT/ Self Sale Indicator -

International

BOS Summary File

Code which denotes a self-sale and/or international sale on a

document. Valid codes include: X - International Sale, S - Self

Sale, X/S - Self Sale International (S/X may be used), and ( )

blank.

System Entry Date

BOS Summary File

The date the document entered IAR.

Coupon Usage Indicator

BOS Summary File

Each document is comprised of a specific number of coupons;

this indicator gives the status of each flight coupon in the

document.

Ticket Document Amount

BOS Summary File

The total sale amount of the transaction as shown on the

document. Total Tax Amount.

Total Tax Amount

BOS Summary File

The sum of the individual taxes that match the document.

Commission Amount

BOS Summary File

The commission dollar amounts due on the transaction.

Modified Data Indicator

BOS Summary File

An indicator that is assigned to automated transactions that

come into IAR with an error status and the agent has to modify

a specific field.

Form of Payment Indicator

BOS Summary File

Indicator showing the type of payment used for the document -

either cash or credit card.

160

Field Name

Screen

Definition

PNR Record Locator

BOS Summary File

The GDS record locator number for the associated Passenger

Name Record (PNR).

Returned Coupon Usage

BOS Summary File

The field is populated as follows: F - Full Refund, P - Partial

Refund, N - New Document in an Exchange, O - Old Document

in an Exchange, M - Adjustment Memo, and D - Disputed

Ticket.

Cancellation Penalty

Amount

BOS Summary File

A fee collected on documents that are returned for an exchange

or refund based on the fare rule of the fare basis code.

Commission on

Cancellation Penalty

BOS Summary File

The commission earned when a document is returned or

exchanged when the ticketing carrier has imposed a penalty.

Primary Ticketing Airline

BOS Summary File

The 3-digit numeric carrier code number that validated the

ticket.

Primary Document

Number

BOS Summary File

The document number that IAR has assigned as the primary

new doc of an exchange or refund.

Primary Document

Number Check Digit

BOS Summary File

The check-digit of the primary document number of an

exchange, refund, or adjustment memo.

Primary Conjunction

Indicator

BOS Summary File

Indicates the last 3-digits of a new doc conjunction ticket in an

exchange or returned document in a refund.

Returned Document

Number

BOS Summary File

The document number being returned for an exchange/refund

transaction.

Returned Conjunction

Indicator

BOS Summary File

The indicator contains the last 3-digits of the returned document

number in a conjunction ticket for an exchange/refund

transaction.

Form of Payment Account

BOS Summary File

Account number associated with the form of payment.

STAT/ Self Sale Indicator -

International

BOS Summary File

Code which denotes a self-sale and/or international sale on a

document. Valid codes include: X - International Sale, S - Self

Sale, X/S - Self Sale International (S/X may be used), and ( )

blank.

System Entry Date

BOS Summary File

The date the document entered IAR.

Coupon Usage Indicator

BOS Summary File

Each document is comprised of a specific number of coupons;

this indicator gives the status of each flight coupon in the

document.

Ticket Document Amount

BOS Summary File

The total sale amount of the transaction as shown on the

document. Total Tax Amount.

Total Tax Amount

BOS Summary File

The sum of the individual taxes that match the document.

Commission Amount

BOS Summary File

The commission dollar amounts due on the transaction.

161

Field Name

Screen

Definition

Modified Data Indicator

BOS Summary File

An indicator that is assigned to automated transactions that

come into IAR with an error status and the agent has to modify

a specific field.

Form of Payment Indicator

BOS Summary File

Indicator showing the type of payment used for the document -

either cash or credit card.

PNR Record Locator

BOS Summary File

The GDS record locator number for the associated Passenger

Name Record (PNR).

Returned Coupon Usage

BOS Summary File

The field is populated as follows: F - Full Refund, P - Partial

Refund, N - New Document in an Exchange, O - Old Document

in an Exchange, M - Adjustment Memo, and D - Disputed

Ticket.

Cancellation Penalty

Amount

BOS Summary File

A fee collected on documents that are returned for an exchange

or refund based on the fare rule of the fare basis code.

Commission on

Cancellation Penalty

BOS Summary File

The commission earned when a document is returned or

exchanged when the ticketing carrier has imposed a penalty.

Primary Ticketing Airline

BOS Summary File

The 3-digit numeric carrier code number that validated the

ticket.

Primary Document

Number

BOS Summary File

The document number that IAR has assigned as the primary

new doc of an exchange or refund.

Primary Document

Number Check Digit

BOS Summary File

The check-digit of the primary document number of an

exchange, refund, or adjustment memo.

Primary Conjunction

Indicator

BOS Summary File

Indicates the last 3-digits of a new doc conjunction ticket in an

exchange or returned document in a refund.

Returned Document

Number

BOS Summary File

The document number being returned for an exchange/refund

transaction.

Returned Conjunction

Indicator

BOS Summary File

The indicator contains the last 3-digits of the returned document

number in a conjunction ticket for an exchange/refund

transaction.

Form of Payment Account

BOS Summary File

Account number associated with the form of payment.

STAT/ Self Sale Indicator -

International

BOS Summary File

Code which denotes a self-sale and/or international sale on a

document. Valid codes include: X - International Sale, S - Self

Sale, X/S - Self Sale International (S/X may be used), and ( )

blank.

System Entry Date

BOS Summary File

The date the document entered IAR.

Modified Date

BOS Summary File

The date the document was last modified in IAR.

162

Field Name

Screen

Definition

Modified By

BOS Summary File

Three-character agent ID code used by the agent who modified

the transaction.

Date Voided

BOS Summary File

The date the document was voided in IAR.

Transaction Code

BOS Summary File

Two-character code indicating the type of document being

reported.

System Entry Code

BOS Summary File

System entry code is populated for sales and the new

document of an exchange only. Valid codes include: R -

Received from the GDS, M - Manually Entered into IAR, and

Null - Old Document of an Exchange.

Void Entry Code

BOS Summary File

The void entry code must be used in conjunction with the void

status code. If the transaction is void and this indicator is Y, the

void was entered directly in IAR. If the status code is V and the

void entry code is blank, then the void was received from the

GDS.

ESAC Entry Code

BOS Summary File

This field is related to the Electronic Settlement Authorization

Code (ESAC) and how IAR receives the ESAC. Valid codes

include: A - Agent entered void in IAR, C - Carrier issued ESAC,

Electronic Settlement

Authorization Code

BOS Summary File

This code indicates that the airline has authorized the agent to

void, refund, or exchange the ticket.

Service Provider ID

BOS Summary File

A code to identify a System Provider's computer system used to

make the reservation and print the ticket.

Tour Code

BOS Summary File

A code identifying tour travel.

Net Remit

BOS Summary File

The amount due the carrier from the agent for a sale.

Passenger Name

BOS Summary File

The passenger’s name consisting of the surname, an oblique "/"

and the first name or first initial.

ARC#

Create BOS Detail File

The unique 8-digit ARC location code identifying a specific

travel office.

PED

Create BOS Detail File

The 5-character alphanumeric code that indicates the Sales

Report period ending date. The format is DDMMM and is

always a Sunday date.

Document Number

Create BOS Detail File

The 10-character document number excluding the check digit.

BOS Detail File Fields

Amount Due To/From an

Agency

BOS Detail File

The dollar amounts due to or from an agency in an exchange or

refund transaction.

163

Field Name

Screen

Definition

Approval Code

BOS Detail File

A series of characters assigned by a Credit Card Company's

authorization system to confirm the approval of an amount to be

charged.

Authorized Amount

BOS Detail File

An amount received from a credit card company during a credit

authorization. This amount is deducted from the customer's

authorized credit limit.

Address Verification Code

BOS Detail File

A code received from a credit card company during credit

authorization that indicates the quality of an address

verification.

Booking Agent

Identification

BOS Detail File

The 6-digit code of the booking agent entered on the ticket.

Bank Exchange Rate

BOS Detail File

This element contains the Bank Exchange Rate used to

determine the amount to be collect in the currency of payment.

Carrier Code

BOS Detail File

A 2-digit alphanumeric code assigned to each carrier.

Ticket/Document Number

Check-Digit

BOS Detail File

The check-digit routine is a device used to improve the

accuracy of data input of a series of numbers. The Modulus 7

check-digit routine is used for Standard Traffic Document Ticket

Numbers. The check-digit is calculated by dividing the

numbered series by seven and declaring the remainder to be

the check digit.

Certificate Number

BOS Detail File

Number for promotional, marketing, or discount certificates

issued by an airline that reduces the fare and is not an

accountable document or part of an exchange transaction.

Conjunction Ticket

Indicator

BOS Detail File

A conjunction ticket is a continuation of the itinerary of the

previous ticket. The indicator for a conjunction ticket is the last

3-digits of the highest number.

Conjunction Ticket

Document Number

BOS Detail File

The 10-digit number of the last ticket in a conjunctive ticket set

(excluding the ticket's check-digit).

Client Identification

BOS Detail File

A code issued by a credit card vendor to identify a customer.

Commission Amount

BOS Detail File

The commission dollar amounts due on a transaction.

Client Identification

BOS Detail File

A code issued by a credit card vendor to identify a customer.

Class of Service

BOS Detail File

A designator reflecting the class of service.

Commission Amount

BOS Detail File

The commission dollar amounts due on a transaction.

Commission Rate

BOS Detail File

The decimal percentage claimed by a travel agency as eligible

commission.

164

Field Name

Screen

Definition

Coupon Use Indicator

BOS Detail File

Each document is comprised of a specific number of coupons;

this indicator gives the status of each coupon in the document.

Credit Card Corporate

Contract

BOS Detail File

An indicator identifying the existence of a corporate contract.

Customer File Reference

BOS Detail File

A number or code assigned by an airline, company or credit

card contractor to track or uniquely identify a person,

department, or project.

Currency of Fare

BOS Detail File

A 3-character ISO currency code.

Commission on

Cancellation/Administrative

Penalty

BOS Detail File

The commission earned by a travel agency when a document is

returned or exchanged when the ticketing carrier has imposed a

penalty.

Disputed Document

Amount

BOS Detail File

The disputed amount being collected or returned depending on

the adjustment memo type.

Destination Airport Code

BOS Detail File

The 3-digit airport or city code for the point of disembarkation of

a segment.

Date Transaction Voided

BOS Detail File

The date a transaction was voided. This removes the document

and its associated value from the Sales Report. The format is

CCYYMMDD.

Endorsement/Restrictions

BOS Detail File

Remarks provided to ensure common understanding between

the passenger and carrier when a fare is restricted as to time of

travel, period of validity, voluntary rerouting, or where any other

restricting conditions are applicable.

Equivalent Fare Paid

BOS Detail File

The amount collected in the currency of the country where the

ticket was purchased.

ET Indicator

BOS Detail File

An indicator to determine the source of an E-ticket. Valid codes

include: N - Ticket is not an electronic ticket and Y - Ticket is an

electronic ticket.

Exchange Transaction Net

Remit

BOS Detail File

The amount due the carrier from the agent for a sale. In this

instance it is the net remit amount of an exchange transaction.

Extended Payment Code

BOS Detail File

A code to indicate whether the customer prefers an extended

payment option if the form of payment is American Express.

Fare Amount

BOS Detail File

This amount is the base fare when added to the tax amounts.

The fare is filed in the currency of travel.

Fare Basis/Ticket

Designator

BOS Detail File

A series of characters defining the entitlement of the passenger

based on the fare charged.

165

Field Name

Screen

Definition

Fare Calculation Mode

Indicator

BOS Detail File

A code identifying how the ticket was priced.

Form of Payment Account

Number

BOS Detail File

The method of payment the passenger used to purchase the

transaction.

Form of Payment Amount

BOS Detail File

The value corresponding to the form of payment entry that is

billed to a credit/debit card.

Form of Payment Type

BOS Detail File

A contrived field for credit card billing that shows the credit card

code and the credit card contractor number.

Fare Calculation Area

BOS Detail File

Fare calculation details must be written to the record, line by

line, exactly as they appear in the fare calculation are on the

ticket. The number and length of print lines vary with the type of

traffic document.

Flight Date

BOS Detail File

The scheduled flight departure date. Format is DDMMM.

Flight Departure Time

BOS Detail File

The local flight departure time as published in the airline's

current schedule based on the 24-hour clock or express as A

for AM and P for PM.

Flight Number

BOS Detail File

The flight number applicable to the leg or segment reserved or

requested.

GTR/STR Indicator

BOS Detail File

An indicator identifying that the transaction's original form of

payment was either a GTR or STR.

In Connection with Carrier

Code

BOS Detail File

The airline code of the prime Standard Traffic Document with

which a miscellaneous document is issued.

In Connection with

Document Number

BOS Detail File

The form and serial number of the prime Standard Traffic

Document with which a miscellaneous document is issued.

In Connection with

Document Check Digit

BOS Detail File

The agent coupon check-digit of the document that is issued for

air travel to use the ground service provided by the

miscellaneous document.

International Sale Code

BOS Detail File

A code used to indicate where the sale and the issuance of a

ticket took place in relation to the country of commencement of

international transportation.

Modified Data Indicator

BOS Detail File

An indicator used to report agency changes to an automate

ticket after the GDS issued the ticket.

New Ticket/Document

Airline Code Number

BOS Detail File

The ticket/document airline code number of a new document in

an exchange.

New Ticket/Document

Number Check-Digit

BOS Detail File

The check-digit of the new document/ticket airline code number

in an exchange.

166

Field Name

Screen

Definition

Number Check-Digit New

Ticket/Document Number

BOS Detail File

The document number that has been issued and included in an

exchange transaction.

Net Remit

BOS Detail File

The amount due the carrier from the agent for a sale.

Original Commission

Amount

BOS Detail File

The original commission amount taken on a sale.

Original Commission Rate

BOS Detail File

The original commission percent taken on a sale.

Original Document Amount

BOS Detail File

Dollar amount of the old document being returned in an

exchange.

Old Document Count

BOS Detail File

The total number of old documents used in an exchange

transaction.

Original Fare Amount

BOS Detail File

The original fare taken on a document that is now having an

ADD issued to claim lost commission.

Original Date of Issue

BOS Detail File

The original date of issue of a document in an exchange or

refund transaction. Valid format is CCYYMMDD.

Original Issue Place Date

BOS Detail File

The ARC number of the agency that originally issued the ticket.

Original Memo Date

BOS Detail File

The date the carrier issued a debit memo. Valid format is

DDMMMYY.

Original Net Remit of the

Settled Document

BOS Detail File

The amount due the carrier from the agent for a sale. In this

instance it is the amount of the net remittance when the original

ticket was settled.

Originating Airport Code

BOS Detail File

The airport code for the starting point of the flight segment.

Original Tax Amount

BOS Detail File

In an AAD, it is the amount of tax identified as "Listed As" tax.

PFC Amount

BOS Detail File

The dollar amount portion of the Passenger Facility Charge tax.

PFC Location

BOS Detail File

The airport code of the PFC tax.

PNR Reference and/or

Airline Data

BOS Detail File

A string of characters representing the PNR reference and/or

airline data as entered on the ticket.

Passenger Name

BOS Detail File

The passenger’s name consisting of the surname, an oblique "/"

and the first name or first initial.

Returned Airline Control

Number

BOS Detail File

The validating carrier code number of the old document in an

exchange or refund transaction.

Returned Authorization

Code for an ET

BOS Detail File

The authorization code provided by the issuing carrier of an E-

ticket.

Returned Commission

Amount

BOS Detail File

The commission amount being returned in an exchange or

refund.

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Field Name

Screen

Definition

Returned Commission

Percent

BOS Detail File

The commission percentage being returned in an exchange or

refund.

Returned Coupon Number

BOS Detail File

Coupon numbers being returned in an exchange or refund

transaction.

Returned Coupon Used

BOS Detail File

This field is populated for a F - Full Refund, P - Partial Refund,

N - New Document in an Exchange, or O - Old Document in an

Exchange.

Returned Document

Amount

BOS Detail File

The dollar amount of the original document being returned.

Refund Amount Due

BOS Detail File

The dollar amounts due to the customer in a refund transaction.

Returned Fare Amount

BOS Detail File

The returned fare in an exchange or refund.

Reason for Issuance

Description

BOS Detail File

Contains the contents of the type of service on an MCO.

Returned Tax Amount

BOS Detail File

The total dollar value of the taxes being returned in an

exchange/refund transaction.

Source of Approval Code

BOS Detail File

When the form of payment is a credit card, this field contains a

code to indicate how the approval code was obtained.

Servicing Airline/System

Provider

BOS Detail File

A code to identify a system provider's computer system used to

make the reservation and print the ticket.

Should Be Commission

Amount

BOS Detail File

The dollar amount of the "Should Be" commission amount on

an AAD.

Should Be Commission

Percent

BOS Detail File

The percent of the "Should Be" commission amount on an AAD.

Should Be Document

Amount

BOS Detail File

The dollar value of the "Should Be" document amount on an

AAD.

Should Be Fare

BOS Detail File

The "Should Be" fare amount on an AAD.

Should Be Net Remit

BOS Detail File

The amount due the carrier from the agent for a sale. In this

instance it is the "Should Be" net remit amount on an AAD.

Should Be Total Tax

BOS Detail File

The "Should Be" total tax amount on an AAD.

Self-Sale and International

Code

BOS Detail File

An indicator denoting the type of travel. Can be used to

distinguish between International and Domestic travel.

Error Status

BOS Detail File

A code to indicate the transaction status.

Out of Period Status

BOS Detail File

Out of period status indicator occurs when the date of issue is

less than the beginning date of the PED.

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Field Name

Screen

Definition

Pending Status

BOS Detail File

Currently not used in IAR.

Stopover Code

BOS Detail File

A code that indicates whether the passenger is entitled to make

a stopover at a city or airport under the terms of the fare used to

price the ticket.

Unresolved Status

BOS Detail File

Currently not used in IAR.

Void Status

BOS Detail File

Valid statuses are V - Void or Null.

Miscellaneous Support

Document Indicator

BOS Detail File

An indicator to note the presence of support documentation

available at the agency's location.

Service Provider

BOS Detail File

Contains the service provider information as entered on an

MCO.

Ticketing Airline Code

Number

BOS Detail File

The validating carrier 3-digit numeric code.

Total Commission Due To/

From

BOS Detail File

The total commission due to or from an agency in an exchange

or refund transaction.

Total Commission on

Administrative Penalty

BOS Detail File

The total commission due to or from an agency on a

cancellation penalty.

Ticket/Document Amount

BOS Detail File

The total sale amount of the transaction as shown on the

document.

Ticket /Document Number

BOS Detail File

The Standard Traffic Document number printed or pre-printed

on the source document.

Ticketing Mode Indicator

BOS Detail File

Indicates the method of ticketing.

Tax/Miscellaneous Fee

Amount

BOS Detail File

The value of the tax/charge/fee named in the

Tax/Miscellaneous Fee Type field.

Tax/Miscellaneous Fee

Type

BOS Detail File

Sales tax/fee type codes assigned to identify taxes or

miscellaneous fees where the value amount differs from zero.

Total New Commission

Amount

BOS Detail File

Total of the commission taken on all the new documents issued

in an exchange.

Total New Document

Amount

BOS Detail File

Total amount of all new documents in an exchange.

Total New Taxes

BOS Detail File

Total amount of all new taxes in an exchange transaction.

Total Old Commission

Amount

BOS Detail File

The total of all commission amounts from old documents in an

exchange transaction.

Total Old Fare

BOS Detail File

The total of all fare amounts from old documents in an

exchange transaction.

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Field Name

Screen

Definition

Total Old Tax Amount

BOS Detail File

The total of all tax amounts from old documents in an exchange

transaction.

Tour Code

BOS Detail File

A code used to identify tour travel.

Total Tax

BOS Detail File

The sum of the individual taxes that match the document.

Total

Administrative/Penalty Fee

Amount

BOS Detail File

The total of all administrative/penalty amounts in an exchange

transaction.

Use It - Lose It Adjustment

Amount

BOS Detail File

When an issuing carrier authorizes an exchange of an old

document and the new document is of lesser value, this

element is populated with a value equal to the difference

thereby disallowing any monies or credits to be given to a client.

Used in a Refund or

Exchange

BOS Detail File

The number of times this document has been used in a current

week for an exchange or refund.

Cancellation/

Administrative Penalty

Amount

BOS Detail File

A fee collected on documents that are returned for an exchange

or refund based on the fare rule of the fare basis code.

ARC#

Schedule a BOS

Internet File Request

The unique 8-digit ARC location code identifying a specific

travel office.

PED

Schedule a BOS

Internet File Request

The 5-character alphanumeric code that indicates the Sales

Report period ending date. The format is DDMMM and is

always a Sunday date.

Summary File

Schedule a BOS

Internet File Request

A file containing a list of transactions that can be loaded into a

user's back-office accounting system.

Detail File

Schedule a BOS

Internet File Request

A file that can be created for a single transaction.

Table Name

Schedule a BOS

Internet File Request

Name of the BOS table associated with the file request.

Normally used for more specialized reporting.

Associate with a Reporting

Table

Schedule a BOS

Internet File Request

Name of a second table used in the file request. The reporting

table zeros in on activity at specific locations.

Reporting PED

Schedule a BOS

Internet File Request

Valid qualifiers are: P - Previous, C - Current, or B - Both.

Date Qualifier

Schedule a BOS

Internet File Request

A qualifier used to show only transactions associated with a

certain date. Valid qualifiers include: PED Date, MCO Date, C -

Current, or B - Both.

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Field Name

Screen

Definition

Available Qualifiers

Schedule a BOS

Internet File Request

Entries used to narrow a search for specific transactions. Valid

qualifiers include: MOD-ID, Adjustment Memo, Cash,

International, Manual Doc, Refund, and Void.

ARC#

Download BOS File

The unique 8-digit ARC location code identifying a specific

travel office.

BOS Delivery ARC#

Download BOS File

The 8-character agency code number to which the BOS file was

sent.

Name

Download BOS File

Name of the file requested.

Request Date

Download BOS File

Date the file was requested. Date format is DDMMMYY.

Creation Date

Download BOS File

Date the file was created. Date format is DDMMMYY.

Last Download

Download BOS File

Date the file was last downloaded from the BOS tab within IAR.

Date format is DDMMMYY.

Status

Download BOS File

Status of the file. Valid statuses are Requested and Completed.

User

Download BOS File

Username of agent who requested the BOS file.

Size

Download BOS File

The size of the file in KBs.

Download Count

Download BOS File

Number of times the file has been downloaded.

File Name

BOS Download History

Name of the BOS file to be downloaded.

ARC#

BOS Download History

The unique 8-digit ARC location code identifying a specific

travel office.

BOS Delivery ARC#

BOS Download History

The 8-digit ARC location code identifying a specific travel office

where the file was sent.

Download Date/Time

BOS Download History

Date and time the file was downloaded by the agency. Date

format is DDMMMYY, time format is HH-MM-SS. Status of the

file.

Status

BOS Download History

Status of the file.

User

BOS Download History

Username of agent who requested the BOS file.

Comments

BOS Download History

Free-form field used to provide comments concerning the status

of the BOS file download.

Table Name

Scheduled Tables

Name of the table.

ARC#

Scheduled Tables

The unique 8-digit ARC location code identifying a specific

travel office.

Type

Scheduled Tables

Identifies the type of table used.

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Field Name

Screen

Definition

Reporting Name

Scheduled Tables

Name of the reporting table.

Creator

Scheduled Tables

Identifies the agent who created the table.

Modification Date

Scheduled Tables

Date the table was last modified. Date format is DDMMMYY.

Report Name

Reporting Tables

Name of the BOS specialized report.

ARC#

Reporting Tables

The unique 8-digit ARC location code identifying a specific

travel office.

Creator

Reporting Tables

Identifies the agent who created the reporting table.

Modification Date

Reporting Tables

Date the reporting table was last modified. Date format is

DDMMMYY.

#Locations

Reporting Tables

Number of locations included in the reporting table.

Purge Date

Reporting Tables

Date the reporting table was or will be removed from the

system.

Table Name

Reporting Table (Add/

Delete an ARC#)

Name of the reporting table.

ARC#

Reporting Table (Add/

Delete an ARC#)

The unique 8-digit ARC location code identifying a specific

travel office.

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Section 6: Payment Card Acceptance Procedures, Chargeback

Management Procedures, and Best Practices

The goal of Section 6 of the handbook is to:

• Outline the responsibility of ARC-accredited agents when accepting payment cards (credit, debit, charge cards)

on behalf of ARC participating airlines.

• Outline expectations for ARC participating airlines and agents when managing chargebacks.

• Provide best practices for card acceptance and the associated risk of fraud, and for chargeback management.

The procedures are based on payment card company rules for card acceptance and chargeback management in

the travel industry. These procedures will be updated as new technology is introduced or payment card company

rules change.

To reference terms in this document, search ARC’s industry glossary.

Payment Card Acceptance Procedures

The following outlines procedures for agents accepting payment cards on behalf of ARC participating airlines:

• Determine if the airline accepts the payment card provided by the customer and under what conditions. The

Payment Acceptance Chart provides detailed airline card acceptance information. Given that the airline accepts

the form of payment, travel agents must honor any payment card brand presented. Discrimination among

payment card brands is prohibited.

• Validate the card expiration date and effective date, when available. Cards may only be accepted when they

are active.

• Identify the ticketing airline and, at the time of ticketing, obtain an authorization (i.e., approval code) via the

GDS for the exact amount of the transaction. Transactions that are not properly authorized may not be settled

successfully and, as a result, the airline may not be paid. In addition, the airline could be subject to increased

card acceptance costs or non-compliance fees, in which case the airline may contact the agent for

reimbursement.

o It is important to note that when doing an ARC Pay (TASF) document along with a ticket, two separate

authorizations must be obtained.

o When presented with an Alaska Airlines Commercial Card (AS), agents should call the AS voice

authorization center at (206) 392-7720 to obtain an approval code. Please note that 50% of the total

fare value must be on Alaska Airlines.

o For ghost card accounts (aka, corporate accounts), travel agents must obtain identification from

unknown customers and confirm that the customer is authorized to use the account.

• Process tickets issued against payment cards through Interactive Agent Reporting (IAR) in accordance with the

procedures outlined in the Industry Agents’ Handbook (IAH).

• Validate the identity of the cardholder, ensure that the cardholder has knowledge of and is participating in the

transaction, and retain documentation demonstrating this in case of a chargeback. In the travel agency

distribution channel, there isn’t a way to absolutely validate that the cardholder is who they say they are and

collect the evidence required to demonstrate this was done. Therefore, it is very important to review best

173

practices for card acceptance.

• Clearly and concisely disclose applicable terms and conditions of sale (e.g., deadlines, penalties and/or fees for

canceling, refunding, or exchanging tickets) to the cardholder prior to completion of the sale. In the event of a

service or refund related chargeback, retain proof that the terms and conditions of the sale were disclosed and

accepted. Additional information about disclosure of terms and conditions is provided under best practices in

this section.

• Keep payment card information secure and in compliance with Payment Card Industry Data Security Standards

(PCI DSS). Travel agents must not disclose to, or otherwise give, any third party the name or account number

appearing on any card, except as may be necessary for a travel agent to successfully settle and support the

transaction as outlined in the Agent Reporting Agreement (ARA).

It is important for agents to follow the above procedures. If the procedures aren’t followed, airlines may not be able

to obtain payment from the payment card companies, which may result in fees associated with improperly

authorized transactions or in a chargeback. The agent is financially responsible for the sale, associated fees and

chargebacks.

To summarize, given the challenges in the travel industry with validating the identity of cardholders, agents are

encouraged to review best practices for card acceptance risk management, and chargeback management. This

information will help identify ways to attempt validation of the cardholder identity and obtain proof that the identity of

the cardholder was validated in the event of a chargeback. The goal of the best practices outlined in this section is

to help agents create a fraud prevention strategy and identify opportunities to obtain necessary documentation to

reverse a chargeback should there be a claim of fraud or a dispute over the terms and conditions of the sale.

Types of Payment Cards

The following is a list of the payment cards processed by ARC and their respective two-character designator:

AS Alaska Airlines Commercial Card

AX American Express

CA Mastercard

DS Discover/Diners Club International

JC Japan Credit Bureau (JCB) International

TP Universa l Air Travel Plan (UATP)

VI Visa

Airline Payment Acceptance Chart

The Payment Acceptance Chart shows the acceptance of various payment cards by each ARC participating airline.

The chart also shows the restrictions some airlines have for accepting payment cards on their behalf. A blank box

indicates that the airline does not accept the payment card. The definition for each code immediately follows the chart.

In some cases, the letter “E” follows the acceptance code. This means the airline accepts the payment card with

additional exceptions to the acceptance criteria. The additional airlines' exceptions, when applicable, are listed

immediately following the definition of the applicable code.

Agents should refer to the ARC’s Airline Participation tool to ensure instructions are followed when accepting

payment on behalf of airlines. This tool provides a concise list of each ARC participating airline, their policies and

processes related to ARC settlement (including payment acceptance, refund/exchange processing validity, IAR

174

ET Edifact support, and Airline Direct participation). The tool can be found in Section 1 of this handbook.

Chargeback Management Procedures

Under the Fair Credit Billing Act (FCBA), consumers in the United States are protected against “inaccurate and unfair

credit billing and credit card practices.” Therefore, cardholders not involved in a transaction billed to their account, or

who did not receive the product or service promised, have the ability to initiate a dispute on a transaction or “charge-it-

back.” As a result, merchants

(airlines and their agents) must engage in a process to respond to chargebacks or risk

financial responsibility for the associated loss.

When a cardholder initiates a chargeback, the dispute is submitted to the airline’s payment processor who works with

the airline to obtain the information necessary to support the transaction. The information provided must prove that the

actual cardholder participated in, and/or authorized the transaction. Airlines may be in the best position to respond to

some chargeback types (e.g., fraud or services not rendered) because they may have proof that the cardholder took

the flight. If other evidence is required to attempt a chargeback reversal, the airline is expected to contact the agent

prior to the close of the chargeback response window to obtain additional information about the customer and the

transaction.

Agents are encouraged to review the best practices for chargeback management in this section to determine what

documentation to provide the airline, and therefore the payment processor, to have the best chance to reverse a

chargeback. Payment card chargeback response timeframes vary by payment card company. Therefore, to have the

best chance of success in defending against a chargeback, agents are encouraged to immediately respond to airline

requests for supporting documentation and no more than five days from receipt of notice.

How to Respond to a Chargeback

The payment card companies have regulations and requirements for the supporting documentation necessary to

successfully dispute chargebacks. In addition, they allow for “compelling evidence” to be provided by the merchant for

consideration in a chargeback dispute. For a fraud chargeback claim, merchants must provide proof that the

cardholder was involved in and authorized the transaction. For service-related chargebacks (e.g., refund not received

or services not rendered), proof that service was provided or that the terms and conditions of the sale were accepted

prior to the transaction taking place is required.

When responding to chargebacks, in an attempt to reverse the chargeback, agents are encouraged to provide

documentation that demonstrates:

1. The identity of the cardholder was validated.

2. The cardholder authorized the transaction.

3. The terms and conditions of the sale were accepted by the cardholder.

Obtaining proof demonstrating that these three things were done is very challenging for merchants, particularly in the

travel industry, and there is no guaranty that the documentation will resolve the chargeback. Additional information

about responding to chargebacks is included in Best Practices for Chargeback Management section below.

For purposes of this section, the merchant is the entity accepting the payment card for goods or services

175

If the airline is unable to obtain a reversal of the chargeback from the payment card company, the agent assumes

financial responsibility for the debit memo issued as a result.

Best Practices for Card Acceptance and Risk Management

This section provides information to help agents make informed decisions about payment card acceptance and the

associated risk of fraud. The best way to reduce the risk of fraud is to “know your customer” and to know the behavior

of typical customers to the agency. When a customer is someone unknown, or falls outside the typical pattern, it can

be a red flag depending on the agency business model. A red flag means additional verification will help in making an

informed decision about accepting a transaction. Most agents don’t know all of their customers, so agents are

encouraged to put tools in place to collect information that assists in validating the identity of the cardholder and

assesses the risk of fraud. This can be challenging in a card-not-present environment in general and particularly in the

travel industry.

Travel agents and airlines sell services, so unlike a traditional retail merchant that sells shoes or electronics, there isn’t

a product to mail to the cardholder address. Mailing tangible goods to the cardholder is one way to demonstrate that

the cardholder was involved in the transaction, but with E-tickets this option isn’t available. Additionally, global

distribution systems (GDSs) don’t make credit card terminals available to travel agents in the U.S. In a brick-and-

mortar retail environment, credit card terminals are available so electronic information can be collected via a “chip” card

as proof that the card was present and valid. Because these tools aren’t available in the travel agency distribution

channel for airline ticket sales, agents aren’t able to fully validate that the card was present and valid. Finally, the

infrastructure to support 3-D Secure (Verified by Visa, MasterCard Identity Check, Discover ProtectBuy) isn’t available

via the GDSs, which means that online travel agents (OTAs) are unable to authenticate the cardholder identity and

receive the associated protection against fraud chargeback claims. Additional information about 3-D Secure follows.

Validating the Cardholder – Card-Not-Present

The large majority of transactions in the travel agency distribution channel are card-not-present, which makes it

challenging to validate that the customer is the cardholder and increases the risk of fraud. Agents are encouraged to

have a risk management strategy in place to help manage the risk of fraud. The first step to creating a risk

management strategy in a card-not-present environment is to become knowledgeable or have someone within your

organization that is knowledgeable about fraud prevention and the tools available to manage the risk of fraud. It is

important to be aware of current trends and tactics used to perpetrate fraud, so the strategy can be consistently

updated. The challenge for travel agencies is to weigh an acceptable level of risk against potential negative impacts

(i.e., friction) to the customer.

Because liability for card-not-present transactions falls on the merchant (airline, and therefore, travel agent), many

travel agents and airlines have developed sophisticated systems to manage risk. These systems generally include the

following to assist the agent in making decisions about whether or not to accept a transaction:

1. The use of several (industry average is seven to nine) payment card company fraud management tools (e.g.,

Address Verification Service, CID validation) along with other third-party tools available to manage risk (e.g.,

email validation tools, negative list tools, issuer fraud information, IP geolocation, device fingerprinting,

machine learning technology).

2. Data about the cardholder and the transaction (e.g., time to travel, cardholder location, previous experience

with the customer).

176

3. A transaction-scoring tool that ties the various data points together.

While fraud detection technology continues to evolve, this approach has become a best practice for managing the risk

of fraud. The information that follows describes some of the tools that can be used to manage the risk of fraud and

chargebacks. The use of these tools does not protect the agent from loss if a chargeback is received, but they are

helpful to evaluate the risk of fraud.

In addition to managing the risks associated with payment fraud, agents should consider what information to collect

about the customer or cardholder and the transaction in the event of a chargeback or a need to collect payment

directly from the customer following a chargeback. This includes data such as proof that the terms and conditions of

the sale were accepted by the cardholder and full address and contact information in the event a chargeback is

received, and the customer needs to be contacted.

Address Verification Service (AVS)

Address Verification Service (AVS) is a tool offered by American Express, Discover, Mastercard, Visa, JCB and Diners

Club International. It allows merchants to verify that the numbers in the billing address provided by the customer match

the billing address associated with the card. AVS can be an effective tool for validating customer identity because, in

many instances, individuals perpetrating fraud do not know the customer billing address. However, it is important to

note that in some cases individuals perpetrating fraud may know the customer billing address. Therefore, using AVS

does not provide a merchant with protection against fraud or chargebacks.

AVS is available through the following GDSs by card type (Note that these tools may not be available on all platforms

within the GDS; therefore, to obtain information about the availability of these tools on specific platform, contact the

GDS):

GDS

American

Express

Diners Club

International

Discover

JCB

Mastercard

Visa

UATP

Amadeus

Farelogix

Sabre

TravelPort

Card Verification Number – Unembossed Number on Card

Visa (CVV2 - Card Verification Value 2), Mastercard (CVC2 - Card Verification Code 2), Discover (CID - Card

Identification) and American Express (CID – Card Identification) each provide a valuable service that allows agents to

validate the unembossed code (three or four digits) on a card. Validating that the unembossed number on the card

matches the number associated with the card attempts to demonstrate (but isn’t proof) that the customer has a valid

card in his/her possession. This prevents individuals with stolen payment card numbers from using the numbers to

make fraudulent purchases. This tool has been proven to be a valuable risk management tool; however, as with AVS,

using CID, CVV2 or CVC2 does not provide protection against chargebacks. The following is an example of how CID

is represented on a Discover card. It is similar with other cards, but as shown in the case of American Express, the CID

is often on the front of the card.

Note: Never write down or retain the unembossed number associated with a customer’s card.

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CID, CVV2 and CVC2 are supported by the GDS for the following card types (Note that like AVS, these tools may not

be available on all platforms within the GDS; therefore, to obtain information about the availability of these tools on

specific platform, contact the GDS):

GDS

American

Express

Diners Club

International

Discover

JCB

Mastercard

Visa

Amadeus

Farelogix

Sabre

TravelPort

Enhanced Payment Card Authorization

All payment card companies require merchants to obtain a payment card authorization for every transaction in the

travel industry. In the travel agency distribution channel, authorizations are obtained via the GDS at the time of

ticketing. Standard card authorization procedures are outlined in the Card Acceptance Procedures.

A standard authorization generally validates that the card number is valid and that the funds (i.e., “open to buy”) are

available on the account. American Express and Discover offer an enhanced authorization service that will allow a

merchant to validate additional information about the cardholder. The following are phone numbers agents can use to

obtain additional information about cardholders.

American Express 1 (800) 528-2121

The American Express Voice Authorization Service offers the ability to verify information about the cardholder including

cardholder name, street address, zip code, and phone number. To use the service, have the card number and the

information to be verified. The system has intuitive prompts to walk through the validation.

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Discover Network 1 (800) 347-1111

The Discover Voice Authorization Service offers the ability to validate the Card Identification (CID) on the back of the

card and to conduct a cardholder name verification. To use CID, have the three-digit code on the back of the card

available. To use the cardholder’s name verification option, have the cardholder’s first and last name.

When calling the Discover Voice Service, have the following information available and follow the voice prompts:

1. Merchant number: 6011 0160 1101 601

2. Card account number

3. Card Identification Data

4. Expiration date

5. Transaction amount

3-D Secure — On-line fraud management tools (Verified by Visa, MasterCard Identity Check, and Discover

ProtectBuy)

The major payment card brands offer on-line merchants a tool called 3-D Secure, however only Visa, Mastercard, and

Discover offer the tool for use through the travel agency distribution channel for airline ticket transactions. 3-D Secure

allows on-line merchants to authenticate the identity of a cardholder through a cardholder-generated personal

identification number (PIN), a one-time use code or other identifying information associated with the account. While the

underlying technology of each system is called 3-D Secure, it is uniquely marketed by each card brand.

3-D Secure is available for on-line merchants with a direct interface to the customer. This means that the cardholder

must be the one directly inputting the payment card information into the merchant website. 3-D Secure works by

authenticating the cardholder on the merchant website through an interface between the cardholder and the entity that

issued that card (e.g., card issuing bank, Discover). Online merchants that use 3-D Secure use third-party

authentication providers, to directly interface with the card issuer so the cardholder can authenticate themselves.

The benefit of 3-D Secure is that when authentication occurs, or is attempted, merchants are protected if a cardholder

claims the transaction was fraudulent. In other words, the liability for the fraud chargeback loss is taken by the card

issuer rather than the merchant. For 3-D Secure to work in the travel agency distribution channel, infrastructure

changes by online travel agents (OTAs), GDSs, ARC and payment card processors are required. ARC has made the

necessary infrastructure changes to support 3-D Secure. However, we are currently waiting for the GDSs to make the

necessary changes. Travel agents interested in using 3-D Secure are encouraged to contact their GDS

representatives to request the that changes are made to support their needs. For additional information, please contact

the ARC payments team at [email protected].

Transaction Evaluation and Scoring Tools

Many merchants effectively manage their fraud risk through the use of transaction-scoring tools that analyze

information available at the point of sale to identify transactions that appear high-risk. Some agents develop tools

internally while others partner with third party providers of fraud scoring tools. Real-time (or near-real-time)

transaction-scoring tools use four key sets of data to analyze risk:

1. Existing payment card company tools like AVS and Card Identification (i.e., Card Identification Code, Card

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Identification Value).

2. Data about the customer and cardholder, such as where they are located, who they are, how they behave

online, previous experience with the customer and any additional data points, to attempt validation that the

cardholder is the customer and they are who they say they are;

3. Data about the transaction including origin and destination, timing and class of service;

4. Data about the point of sale including card present versus card not present and the type of business typically

done by the agency (e.g., international travel, corporate travel, domestic travel, specific destinations).

Analysis of this data provides merchants with information to manage risk. Scoring tools use the data available to

expedite the processing of low-risk transactions and flag high-risk transactions for further analysis. Fraud scoring

providers generally offer a user interface the merchant can use to quickly analyze high-risk transactions. Many of the

largest travel industry merchants use fraud scoring tools, along with a set of other fraud prevention tools and tactics to

identify and reject fraudulent bookings.

Risk Management for Corporate Relationships

Fraud against Travel Management Companies (TMCs and agents that manage corporate accounts) has grown in

recent years as social engineering schemes have become more sophisticated. Fraudsters often manipulate agents

managing corporate travel accounts by posing as an employee of the corporation. Agencies that manage corporate

travel accounts need to have procedures in place to ensure that agents validate that they are ticketing for the actual

corporate customer. The following are tips to reduce the risk of fraud tied to managing corporate accounts:

1. Keep informed of the latest fraud schemes targeting TMCs.

2. Identify typical travel for a corporate customer and flag tickets that fall outside the normal pattern.

3. Verify referrals with the corporate client, particularly when travel patterns change.

4. Directly verify the caller’s telephone number with the contact at the corporate client.

5. Pay particular attention to transactions for passengers without existing profiles.

6. Make sure after-hours staff are aware of and closely follow procedures.

Validating the Cardholder – Card-Present

A small percentage of transactions take place face-to-face, and card-present fraud (aka counterfeit, lost/stolen) rates

are low, however, whenever accepting payment cards in a face-to-face environment, it is important to attempt

validation of the cardholder identity and retain information about the cardholder that provides proof in the event a

chargeback is received. To do this in an environment where the card is present, a chip card reading terminal is

required. Given that the GDSs don’t do not currently make card terminals available to support airline ticket sales

through travel agents, the only way to demonstrate that the card and cardholder were present is to obtain a signed and

imprinted Universal Credit Card Charge Form (UCCCF).

With the growth of Europay, Mastercard and Visa (EMV) chip card technology in the U.S., a manual card imprint on a

charge form no longer meets the burden of proof that the card is valid if the cardholder claims fraud and therefore

disputes the charge. In other words, a signed UCCCF is no longer considered proof that the cardholder is present and

the card is valid. Payment card company rules state that liability for card-present fraud (i.e., counterfeit or lost/stolen)

loss falls to the entity (card issuing company, e.g., American Express, bank or merchant) that doesn’t support the chip

technology. Therefore, since GDSs don’t offer chip reading terminals to travel agents, the agency is responsible in the

event of a loss due to the agent’s acceptance of a counterfeit or lost/stolen card.

Although a UCCCF no longer provides a remedy for a card-present fraud chargeback, it can be provided as

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“compelling evidence” in an attempt to reverse the chargeback. This is why it is still considered a best practice to

obtain a signed and imprinted UCCCF.

ARC no longer produces or prints the paper Universal Credit Card Charge Form (UCCCF). Alternatively, agents may

purchase credit card sales slips from local or online office supply stores that can be used to capture card imprints and

customer signatures. A PDF version of the UCCCF is available in Section 10 of this handbook.

The following includes instructions for completing a UCCCF.

Guide to the Preparation of the Universal Credit Card Charge Form

1. Obtain the cardholder’s signature and compare it with the signature on the card.

2. Enter the three (3) digit airline code.

3. Imprint the date of sale.

4. No longer applicable.

5. Enter the passenger’s name and connection with the subscriber, if other than the cardholder.

6. No longer applicable.

7. Enter the authorization/approval code received via the GDS.

8. Enter the airport/city code, fare basis and airline codes of the ticket routing (if applicable).

9. Enter the payment card name or two-letter alpha code.

10. Enter the airline code and ticket number(s) of tickets issued.

11. Imprint card.

12. Enter fare, tax and total of all tickets issued.

Note: Retain the signed, imprinted form in a secured location so it can be provided as compelling evidence in the event

of a fraud chargeback.

Other Tips for Detecting Fraud

Agents who know their customers have a lower risk of fraud than agents accepting transactions from unknown

individuals. Information is critical when evaluating the risk of fraud. A merchant (airline, and therefore, agent) can start

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to evaluate the risk of fraud by evaluating the data available about a transaction and the customer.

The following are examples of data points often available about a transaction that can help evaluate the identity of a

cardholder and/or the risk that the transaction could result in a chargeback. Please note, none of these items alone

provide a full evaluation of the customer or the transaction, but when used together paint a more complete picture that

can be used to evaluate risk. For additional information about red flags for fraud prevention, the “Payment Card

Acceptance Red Flags” guide is available on the ARC website at: https://www2.arccorp.com/support-training/fraud-

prevention/best-practices/.

• Customer information:

o Passenger name — Validate that the passenger’s name matches the cardholder’s name. This can be

done by calling one of the enhanced voice authorization phone numbers or by calling the number on

the back of the card. If none of the passenger names match the cardholder’s name, the risk of fraud

increases. Please note that fraudsters may work around this red flag when booking a group by

including the cardholder’s name as one of the passengers for a ticket that will never be used.

o Customer history — Determine if the customer is a previous customer of the agency and if the

experience was positive or negative. If the customer previously initiated a chargeback, it may not be

worth the risk. If the history with the customer is positive, the risk that they will claim fraud is lower.

o Email address — Email addresses from free services are easy to obtain and can be difficult to trace.

Therefore, they are easy for individuals perpetrating fraud to use. Employ a service to validate email

addresses that determines how long it has been in use, along with other information to help identify

the risk of fraud.

o Caller ID — If the Caller ID shows a customer calling using a Voice over Internet Protocol (VOIP)

service, this could be an indication of a high-risk customer. With the use of VOIP, it is difficult to know

more precisely where the customer is calling from. However, with the prevalence of VOIP for

legitimate users, it can be difficult to identify good customers from fraudsters.

o New customer — Depending on the agency’s business model, a new customer may be considered

higher risk, particularly when the initial contact is via email, Internet, or TTY service (for the hearing

impaired). Generally, individuals perpetrating fraud prefer to do so without making human contact.

However, there has been a trend toward the use of social engineering tactics to perpetrate fraud. If a

new customer is requesting travel outside typical patterns for the agency, it could be a red flag.

o Customer not local — Depending on the business model, if a customer calls the agency for the first

time, determine how they heard about the agency and if they are available to come into the agency. If

not, the risk of fraud increases. Beware of social engineering schemes that use information available

via the internet (including social media sites like LinkedIn, Facebook or Twitter) to help build a

relationship.

o Multiple payment card numbers provided — If the first card is declined and another card is provided,

this could be an indication of a problem.

• Transaction information:

o Last-minute travel — A date of departure near the date of issue can indicate an increased risk of

fraud. The challenge is that this is often the behavior of good customers. Please note that there is a

trend toward fraudsters purchasing a ticket several weeks or months in advance of the date of

departure, but then contacting the airline to change the ticket to an immediate departure for a different

itinerary.

o International travel — International travel tends to be higher risk than domestic travel, although

domestic fraud is on the rise.

o High-risk cities — Some itineraries and cities have higher fraud rates.

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o Departure city — A departure city that isn’t near the cardholder’s billing address can be an indication

of higher risk.

It is important to note that individuals perpetrating fraud are able to find ways to “work around” well-known red flags.

Most travel agents know and understand typical customer travel behavior for their business. When travel trends fall

outside the typical behavior, the risk tends to be higher. Agents are encouraged to stay informed of the latest fraud

trends and be aware of customers that display behavior that is not typical for the agency.

Disclosure of the Terms and Conditions of the Sale

In addition to fraud-related chargebacks, merchants can receive chargebacks for cardholder claims related to the

service or a refund not received. When a service or refund-related chargeback is received, the agent is required to

provide proof that the terms and conditions of the sale were disclosed and accepted by the cardholder. As noted

below, how the information is disclosed and accepted will differ depending on how the sale takes place (i.e. online,

face-to-face, phone). Most “terms and conditions related disputes” are about the customer’s ability to refund or change

a ticket and the associated fees. Therefore, regardless of how the transaction takes place, it is important to provide

clear and concise disclosure of the rules at the time of purchase. Additionally, if a chargeback is received, the agent

must provide proof that the cardholder was informed of the rules.

Face-to-face – Provide the customer with a written disclosure of the terms and conditions and ask them to

sign it to acknowledge receipt. Retain it in case of a dispute.

Online – Include a “click-to-accept” of the terms and conditions of the sale. Include a clear and concise list of

the key terms followed by an on-line check box. Obtain a screen print of your system in case of a dispute.

Phone – Read the key terms and conditions to the customer and request they acknowledge that they

understand. Proof that this disclosure was completed is difficult to obtain, however, merchants have some

success providing a recording along with a transcript as proof in case of a dispute.

Chargeback Management Best Practices

The ARC Debit Memo Working Group is a group of travel agencies, airlines, GDSs and other industry partners focused

on reducing or eliminating debit memos. When looking at debit memo reasons by dollar amount, payment card

chargebacks are the highest category. Chargebacks are a pain point for both agents and airlines. While the best way

to reduce chargeback debit memos is to reduce fraud, there is also an opportunity to reduce debit memos by disputing

received chargebacks. For example, in a “friendly fraud” situation, there is an opportunity to provide data that

demonstrates the cardholder was involved in and authorized the transaction. Following are some key steps to help

successfully reverse chargebacks.

Friendly Fraud (i.e., Chargeback Fraud) versus True Fraud

It is important to know the difference between friendly fraud and true fraud when deciding if, and how to respond to

chargebacks. It can be challenging, because in both cases, the chargeback is generally identified as “Fraud” or “No

Knowledge” by the credit card issuer. Friendly fraud occurs when a cardholder participated in and authorized a

transaction but claims the card was used without the cardholder’s knowledge. True fraud occurs when payment card

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data is stolen and used to purchase tickets without the cardholder’s knowledge.

The distinction between true fraud and friendly fraud is important when managing chargebacks because it is

impossible to provide proof that the cardholder was involved and authorized the transaction when their card

information was stolen and used to make the purchase. Therefore, merchants are encouraged to attempt to determine

which chargebacks are friendly fraud versus true fraud before taking the time to respond to fraud chargebacks.

Unfortunately, only friendly fraud chargebacks can be won.

Responding to a chargeback

There are two ways to reverse a chargeback. First, provide a remedy which the card companies specifically define as

evidence that the dispute is invalid. Second, provide “compelling evidence” that provides confirmation that the

cardholder was involved in and authorized the transaction.

Chargeback Remedy

In the U.S. travel agency distribution channel for airline E-tickets, the information required to remedy (i.e., reverse) a

fraud chargeback 100 percent% of the time is not currently available. There are two main reasons why this is the case:

1. Card-Present - In a card-present transaction, proof that the card is not counterfeit or lost/stolen is required.

With the implementation of chip card functionality in the US, the proof is only available by using a credit card

terminal that reads the chip. Travel agents do not have chip card reading terminals.

2. Card-Not-Present – In a travel agency E-ticket environment, the infrastructure to support 3-D Secure is not

currently available. In addition, since there aren’t tangible goods to be delivered, there is no way to prove

delivery to the cardholder’s address.

The good news is that in the event of a Visa fraud chargeback, if an airline provides proof that the cardholder was on

the plane, the chargeback will be reversed. This can be a challenging for the airline because the name of the

cardholder is not provided on the chargeback. Therefore, the airline would need to provide the documentation on all

fraud chargebacks in the hope that some are reversed. Other payment card companies will consider proof that the

cardholder was on the plane as “compelling evidence,” but not a remedy which would reverse the chargeback.

In summary, to increase the odds of reversing a fraud chargeback, the agent needs to provide proof that the true

cardholder was involved in, and authorized, the transaction. Absent this proof, it’s unlikely that a fraud chargeback

dispute will be settled in favor of the merchant (airline and, therefore, agent).

Compelling Evidence

The payment card companies use the term “compelling evidence” to describe the documentation merchants can

provide to prove that the identity of the cardholder was validated, and that the cardholder was involved in the

transaction. While compelling evidence may be considered by credit companies when reviewing a response to a

chargeback, it does not provide a guarantee of remedy (i.e., reversal of the chargeback). The following are some

examples of documentation that may be considered “compelling evidence” by some credit card companies and, when

presented together, may demonstrate that the cardholder was involved in, and authorized, the transaction:

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• Email correspondence to an email address that matches the address the payment card company has on file

for the cardholder.

• Emails, photographs or other evidence proving the relationship between the cardholder and the

customer/passenger if they are different.

• An imprint of the card on a credit card charge form with a cardholder signature.

• Photographs or social media postings proving that the cardholder took the flight to a particular destination.

• Copy of the valid cardholder passport or driver’s license (please note, however, that these documents can be

easily forged and may not provide proof of cardholder participation in the transaction).

• Evidence of additional valid transactions tied to the chargeback transaction.

• Evidence of the customer’s prior affiliation with the agency.

• Evidence that the passenger is, or was, a member of the cardholder’s household.

Agency Chargeback Response Best Practices

When an agency receives a chargeback notice from an airline, in an attempt to reverse the chargeback and/or avoid

the loss, they are encouraged to do the following:

1. If the transaction was refunded, provide the airline with an image of the refund from the Document Retrieval

Service (DRS) along with the refund date and amount. Please note, do not issue a refund after the chargeback is

received. It could result in two credits to the cardholder.

2. Contact the customer to explain the charge. If there has been a misunderstanding on the part of the customer,

request that they contact their bank to rescind the inquiry or dispute/chargeback. Even if the customer agrees to

withdraw the dispute, be sure to respond to the chargeback in case the customer does not contact the payment

card company.

3. If the agency has been hit by fraud, where the customer/passenger was not the cardholder, therefore resulting in a

cardholder receiving an unauthorized charge, there isn’t any documentation that can be provided to reverse the

chargeback. One good indication of true fraud is that the customer cannot be reached. The agent is encouraged

to review fraud prevention procedures to avoid future occurrences.

4. If the agency believes the true cardholder was the passenger, indicating friendly fraud. Or, if the reason for the

chargeback is authorization related or tied to the disclosure of the terms and conditions of the sale, (i.e., “services

not rendered”), agents are encouraged to provide professional, legible and concise documentation to back up the

agency’s defense to the chargeback. A cover letter on company letterhead should be included with a clear and

concise outline of what the transaction represents and what the customer received. The following are examples of

evidence to include with the letter:

• Any proof that the cardholder authorized the transaction (see: “Compelling Evidence”).

• Any proof that the customer is the true cardholder (see: “Compelling Evidence”).

• Copies of tickets or details of the itinerary to help the customer recognize the charge.

• Copies of invoices provided to the customer including an email address that could be tied to the cardholder.

• Signed acknowledgement of the terms and conditions, particularly referencing refund policy if the ticket is

non-refundable.

• Proof that a valid authorization was obtained.

• Signed and imprinted UCCCF when available.

• Anything that could be considered “compelling evidence” that the cardholder was involved in and authorized

the transaction.

5. If the cardholder is disputing the charge and therefore initiating a chargeback because they believe there is a

duplicate billing, and there are two separate and legitimate transactions, provide proof of both charges including

both ticket numbers.

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6. Respond to the airline as quickly as possible, and no longer than five (5) business days after receipt of the

chargeback.

7. If you believe the customer has perpetrated fraud and received services for something that has not been paid,

contact the police, seek legal counsel to determine the best way to manage the customer perpetrating fraud,

and/or consider a collection service to obtain the funds.

Payment Card Industry Data Security Standards

Any ARC participant that accepts payment cards as payment must keep all payment card numbers and personal

information secure, whether in hard copy or electronically. While confirmation is not required, the Agent must be

compliant with the Payment Card Industry Data Security Standard (PCI DSS). Additional information about PCI-DSS

requirements can be found on the ARC website at https://www2.arccorp.com/pci-data-security-standards/.

ARC Security Standards and Compliance with PCI- DDS requirements

ARC, as both a merchant and/or processor (service provider) on behalf of many merchants and businesses (including

all ARC participating Airlines and Agent), is regarded as a top-level service provider that handles large volumes of

credit card data and is thus subject to strict Payment Card Industry- Data Security Standard (PCI-DSS) requirements.

In fact, in 2006, ARC was very pleased to be the first “Level 1” entity in the travel industry to be PCI Compliant, and we

actively participate in the PCI Security Standards Council (see http://www.visa.com/cisp/ for PCI-compliant service

providers).

Meeting and exceeding the strict PCI standards for data security goes hand-in-hand with ARC’s own data security

policies.

ARC is assessed annually under the PCI Security Standards Council (“PCI-DDS”) standards as outlined by PCI

Standards Organization - https://www.pcisecuritystandards.org/. The annual assessment reviews and verifies over

one hundred aspects of ARC’s security controls and procedures to ensure compliance with the PCI-DDS standards.

ARC is currently in compliance with all applicable PCI DSS requirements published by the PCI Security Standards

Council relevant to the services it provides for Agents and Carriers to maintain the security of cardholder account data

ARC possesses or otherwise stores, processes or transmits. Below is the current list of applicable requirements:

PCI DSS

Requirement

Description of Requirement

Applicable

to ARC

Install and maintain a firewall configuration to

protect cardholder data

Do not use vendor-supplied defaults for system

passwords and other security parameters

Protect stored cardholder data

Encrypt transmission of cardholder data across

open, public networks

Protect all systems against malware and regularly

update anti-virus software or programs

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Develop and maintain secure systems and

applications

Restrict access to cardholder data by business and

need to know

Identify and authenticate access to system

components

Restrict physical access to cardholder data

Track and monitor all access to network resources

and cardholder data

Regularly test security systems and processes

Maintain a policy that addresses information

security for all personnel

Conclusion

The best way to reduce the risks associated with payment card acceptance is to know your customer. Travel agents

who meet customers face-to-face are in a better position to reduce exposure to fraud and chargebacks. It is important

to keep in mind that as fraud prevention tools become more effective in card-not-present environments, fraudsters

seek new avenues for perpetrating fraud. Therefore, it is important to remain vigilant and be on the lookout for

customer behavior or ticketing patterns that are not usual for the agency.

There are many tools available to help merchants manage the risk of payment card fraud. For card-not-present

transactions, tools like Address Verification (AVS) and Card Identification verification (CID, CVV2 and CVC2) are

available through the GDS. When used in conjunction with other red flags for fraud, these tools allow merchants to

review transactions and evaluate risk at the basic level. Tools like 3-D Secure, along with other tools that do device

fingerprinting, online or mobile behavior evaluation, and machine learning, allow travel agents to evaluate transactions

by employing a more sophisticated set of tools.

If you experience or suspect fraud, please contact the ARC fraud prevention team at +1 703-816-8137 or via email at

[email protected].

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Section 7: Reporting and Remitting Irregularities and How to Correct Them

This section is designed to assist you if you are experiencing difficulties complying with the reporting and remitting

obligations of the Agent Reporting Agreement (ARA). This section lists some of the circumstances identified by agents

and ARC that may impact compliance with the reporting and remitting terms of the ARA. It also identifies some of the

common corrective actions that agents have adopted to remedy those problems.

This material is intended for general guidance of agents. It is in no way intended either to alter the terms of the

Agreement or to be an exhaustive list of compliance issues or corrective actions. Agents should be familiar with

the terms and provisions of the ARA and the Handbook and their specific responsibilities. If you have questions

regarding this section, please contact the Customer Care Center at +1 855-816-8003.

Common Remitting and Reporting Problems

1. Inadequate investment capital - operations conducted with thin margins.

2. Over-extension of credit to clients, particularly commercial accounts.

3. Faulty deposit practices: Funds deposited too infrequently, to the wrong bank account or not in sufficient time to

prevent an overdraft. These include deposits made the day the ARC draft is scheduled to be presented, as well as

deposits made to a bank account other than that to which the ARC draft is presented.

4. Dependence on uncollected funds, for example, assuming funds are immediately available upon deposit when, in

fact, there has been insufficient time for clearance and collection of deposited items by the agent's bank.

5. Comingling of ARC and general agency funds, conflicting transactions may arise.

6. Assignment of essential agency duties exclusively to a specific employee, so there are no backups or alternative

arrangements in place in the event of that employee's unavailability.

7. Lack of communication or breakdown of arrangements with a bank such that a bank would fails to timely notify the

agent of an overdraft situation so that funds may be transferred or deposited before the draft is dishonored.

8. Failure to maintain adequate funds in the ARC account.

9. Dishonored client payments, resulting in an overdraft or dishonored ARC drafts.

10. Errors in the performance of assigned duties and misinterpretation of the agreement by agency employees, for

example, failure to deposit funds or replenish overdraft in ARC designated bank account in a timely fashion.

11. Failure to provide sufficient notification to ARC of an intention to change the ARC designated bank account (the

completed Bank Account Change Form (ARC Form 614) must be received by ARC at least one week prior to the

beginning of the affected sales period and must indicate the first sales period ending date (PED) to which the bank

change applies). Bank account issues may also arise in connection with ownership changes or when the agent's

bank has merged with, or has been bought by another bank and the transit routing number has been changed.

This is also a concern if the agent's account has been closed due to fraud or some other issue and requires

prompt communication with ARC to correct the situation.

12. Failure to report tickets in the period in which validated.

13. Failure to report tickets in any sales period.

14. Improperly voiding an electronic ticket or voiding the ticket prior to receipt of the actual unused flight coupons from

the customer. Should the client fail to return the ticket and/or use it for transportation and/or exchange or refund,

the ticket could be considered an unreported/improperly reported sale by the carrier.

15. Authorizing and submitting reports before all transactions have been received from the GDS and applied to the

Sales Report.

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Common Corrective Actions for Remitting Problems

1. Increase investment capital.

2. Place adequate/additional funds in the ARC-designated bank account to provide a margin of safety.

3. Reduce overhead and unnecessary expenditures.

4. Develop a responsible credit policy that allows for increased collection of receivables. Consider modification to

customer payment terms by reducing the number of days to remit payment as well as modification of payment

methods, requiring/encouraging more cash, certified check, approved credit card, or personal check transactions

(but only where sufficient time is available for collection before delivery of tickets).

5. Adopt procedures governing bank deposits to assure that they are (a) made on a regular and frequent basis to the

proper account; and (b) deposited, allowing sufficient time to clear prior to the ARC draft date.

6. Maintain a separate bank account for the sole purpose of depositing, safeguarding and remitting payment to ARC.

7. In matters of financial and administrative management, provide for review of deposits and disbursements of funds

by more than one person.

8. A commonly used corrective measure is a written overdraft protection agreement issued by your bank. This

overdraft protection agreement provides for automatic overdraft coverage, either by means of a line of credit or

transfer of funds arrangement, in an amount equal to approximately twice the agent's average weekly sales period

draft, plus an undertaking by the agent to replenish within five working days any credit drawn upon from the credit

line of funds transferred to cover an ARC draft. Pursuant to such an arrangement, the bank agrees in writing to the

agent to pay ARC drafts automatically, without the need for prior reference to, or approval from, the agent, by

drawing on the agent's credit line or transferring funds from another account maintained by the agent. Additionally,

the agent uses the account to which the automatic line of credit or transfer of funds agreement is tied solely for

payment of its ARC drafts. Using a written overdraft protection agreement for at least one year allows time for

some of the other financial and administrative corrective actions taken by an agent to work to prevent overdrafts

(See sample overdraft protection agreement at the end of this section).

Common Corrective Actions for Sales Reporting Problems with Tickets

1. Do not void or remove ticket transactions from the IAR sales report unless the unused coupons from that transaction

are first returned by the client to the agency and/or an electronic ticket has been properly voided.

2. Check your IAR report daily for any errors so they can be quickly corrected.

3. In the preparation of weekly sales reports, assign to one individual the responsibility of accounting for all tickets to

be included in the report, and assign a second individual the responsibility of verifying the inclusion of all tickets.

Provide additional backup personnel to handle these tasks when those individuals are unavailable.

General Comments

1. You are required, pursuant to the terms of the ARA, to remit every week for all transactions issued on ARC Traffic

Documents. This remitting obligation is not excused by an inability or failure to collect amounts due from your

customers or other accounts receivable. Consequently, you must tailor your agency's credit policy in so that it will

not interfere with your obligations under the ARA to pay for all transactions weekly.

2. It is your responsibility to have sufficient collected funds on deposit when ARC drafts are presented, or

alternatively, to have an established line of credit or similar agreement with your bank that will operate

automatically to provide overdraft protection, without the necessity for your prior notice or approval. Written

overdraft agreements with the bank are advisable since they may serve as proof of the banking arrangement, to

avoid misunderstandings, and clearly fix the parties’ responsibilities.

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3. Lines of credit and/or overdraft protection arrangements with your bank should be automatic and not be dependent

upon your prior notice or approval prior to implementation. Arrangements that are not triggered automatically

provide no guarantee of automatic payment of drafts upon presentment. These types of arrangements frequently

break down for a number of reasons, for example, absence or unavailability of bank officers or agency personnel

familiar with the overdraft arrangement; new and uninformed bank personnel; bank clerical errors; and failed last-

minute attempts by the agent to cover an overdraft after notice from the bank. Please note, that overdraft

arrangements and lines of credit do not transfer responsibility for payment of ARC drafts to the bank or a third

party.

4. If you are presented with a sudden closing of your ARC designated bank account, or some other action that

results in an inability to access funds in your ARC bank account (garnishment, etc.), you are advised to contact

ARC immediately so that bank account change procedures can be started. The number of dishonored drafts may

be minimized. Contact ARC at +1 855-816-8003 for instructions to expedite a bank change and make immediate

arrangements for payment of any dishonored ARC drafts.

5. It is your responsibility to provide effective day-to-day financial and administrative management of the agency, and,

accordingly, you are responsible for the actions or omissions of your employees, contractors and other

representatives which may lead to financial and/or reporting irregularities. Common examples of such actions and

omissions are: failure to follow instructions; errors in bookkeeping; incompetence or inexperience;

mismanagement; and absences due to illness, vacations, or business commitments. This same principle applies

to the acts or omissions of an independent management firm hired to carry out the agent's reporting and remitting

duties.

6. Personal payment guarantees with respect to your account by bank officers do not constitute a "line of credit" that

will operate automatically to prevent overdrafts. Similarly, the letter of credit in effect between you and a

bonding/surety company, or you and ARC, is not considered a "line of credit" or an automatic overdraft protection

on the ARC account.

7. Notice to ARC of a change in agency ownership does not fulfill the requirement of notice of a change of bank

accounts. Care must be taken to satisfy both obligations. Sufficient funds must be kept in the former owners' bank

account to meet ARC drafts until the effective date of an ARC draw on the new owner's new bank account.

8. You must notify ARC of any and all changes to your bank account and the locations to which the change applies

(home office, branch locations, etc.).

9. You are responsible for maintaining business practices in such a way as to prevent monetary disputes by third

parties, which may result in a dishonored ARC draft. The dishonor of an ARC draft may result when your ARC

account is depleted, blocked or frozen because of transfers from, or charges against, the account made by a bank,

creditors or another third party in pursuing claims against you. Such claims may include a writ of attachment

obtained by a third party, debiting or freezing the account in connection with the repayment of a revolving loan,

loans to owners and shareholders, a corporate note, or pursuant to demand obligations.

10. You are obligated to ensure sufficient, collected funds are in your ARC account prior to the presentment of ARC

drafts. Pursuant to the terms of the Agreement, Carrier funds must be held in trust until satisfactorily accounted for

to the Carriers. Should an ARC draft be delayed for a period of time, these funds must remain in the account until

the draw is actually made.

11. You must report tickets in the period in which each is issued and/or validated, regardless of whether clients have

paid for and/or picked up the tickets.

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Section 8: Taxes, Fees, and Charges

Overview

ARC agents are required to collect, and report all federally - imposed taxes, fees and charges. Agents must also

collect and report certain taxes, fees, and charges levied by foreign countries. The proceeds from all U.S. air

passenger taxes are deposited in the Airport and Airway Trust Fund. Information about the Trust Fund may be found

at the Federal Aviation Administration (FAA) website. The proceeds are generally used to fund U.S. government

operations for air travel. Congress established this fund so that the expenses incurred by the government in operating

the air traffic system would be borne by the people using the system.

Taxes, fees and charges are applied when the ticketing transaction is ticketed and issued through the System

Provider (GDS/CRS). Please contact the ticketing carrier and/or the System Provider if you have questions about

taxes, fees, or charges for a specific ticket or transaction. ARC is not involved in setting or enforcing taxes, fees, and

charges, nor is ARC involved with creation or enforcement of individual airline policies, including taxes, or ticket/tax

refundability.

The information in this section relates to tickets purchased in the U.S. The tax treatment of tickets purchased outside

the U.S., including Canada and Mexico, is not within the scope of this section.

The most common taxes and fees you will collect are the U.S. Ticket Tax, U.S. International Departure Tax, U.S.

International Arrival Tax, and the Passenger Facility Charge. The following is a general description of these items:

• The U.S. Ticket tax applies to tickets issued for air transportation within the 48 U.S. continental states

(including the District of Columbia), within the states of Alaska and Hawaii, and between points in the

continental U.S. and cities within a 225-mile buffer zone adjacent to the U.S. in the countries of Canada and

Mexico.

• The U.S. International Departure Tax applies to travel beginning in the U.S. and ending outside the U.S.

• The U.S. International Arrival Tax applies to travel beginning outside the U.S. and ending in the U.S.

• A Passenger Facility Charge is a charge assessed by an airport. The charge is used for airport

improvements.

When issuing tickets, all taxes, fees, and charges must be clearly shown on the transaction in your IAR sales report.

The amount of the tax, fee, and charge must include the two-letter code for each tax, fee, and charge collected. IAR

supports up to 99 taxes, fees, and charges on a transaction. In the unlikely event there are more than 99 taxes, fees,

and charges, , the agent can combine the remaining taxes, fees, and charges into a single total amount and that 99

tax should be identified with the two-letter designator of “XT”. XT is only valid as the 99

tax and only allowed when

all 98 other tax fields are used.

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Codes for United States Taxes, Fees, and Charges

The following list summarizes some of the possible U.S. taxes, fees, and charges that can be assessed on tickets issued

within the U.S. This summary does not include the tax amounts. Please refer to your System Provider or issuing carrier

for the actual tax amounts, current rules and exemptions, and the most current listing.

Designator

Name of Tax/Fee/Charge

Description

U.S. Ticket Tax

A percentage of the base fare of a ticket issued

for transportation within the continental U.S.

Alaska/Hawaii Ticket Tax

A variable percentage of the base fare is

determined by the exact itinerary for flights

between the U.S. and Alaska/Hawaii

Alaska/Hawaii International Travel Facilities Tax

Tax imposed on domestic segments beginning

or ending in Alaska or Hawaii

U.S. International Departure Tax

Tax on transportation beginning in the U.S.

and ending outside the U.S.

U.S. International Arrival Tax

Tax on transportation beginning outside the

U.S. and ending inside the U.S.

U.S. Customs Fee

Assessed to passengers arriving outside the

customs territory of the U.S.

Immigration Fee

Assessed for travel from any international

point into the U.S., Puerto Rico, Guam and the

U.S. Virgin Island

Animal and Plant Health Inspection Service

(APHIS) Fee

Assessed for travel from any international

point into the U.S. and Puerto Rico

*XF

Passenger Facilities Charge (PFC)

A fee assessed by an airport for airport

improvements.

*ZP

U.S. Flight Segment Tax

Assessed for each domestic flight segment

Ticket Security Fee

Assessed on for flights departing the U.S.

Combined Taxes, Fees, and Charges

This code is only allowed when the number of

taxes collected exceeds 99. IAR supports up

to 99 taxes per ticket.

Fuel Surcharge

A fuel charge assessed by an airport for flight

*XF; Passenger Facilities Charge (PFC) - For a one-way ticket, PFCs can be collected on a maximum of two segments. For a

round-trip ticket, PFCs can be collected on a maximum of four segments.

*ZP; U.S. Flight Segment Tax - ZP taxes do not apply to free tickets (non-companion), rural areas, and international tickets

(this includes a U.S. stopover of 12 hours or less – the 12-Hour Rule).

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Section 9: Travel Industry Related Laws and Regulations

Businesses operating in the United States and around the world are required to comply with applicable governmental laws,

rules, and requirements. Carriers may also require travel agents to comply with applicable laws, including regulations issued

by the U.S. Department of Transportation (DOT).

From time to time, ARC may post copies of some of these laws and regulations in this section of the Handbook for

informational purposes only.

Please note, the information in this section is not all-inclusive and may be subject to amendment and updating by

governmental, regulatory, or other authorities. Because of variations in the legislative and rule-making process, we cannot

guarantee that the versions shown are accurate or up to date. Visitors to this section should check with the carrier,

governmental agency, or relevant legal authority for the most current information and/or instructions.

DOT requirements on the Display of Carrier Operating Information (Code-Share display)

This DOT notice is intended to provide guidance on the disclosure of code-share service in light of recent

amendments to 49 U.S.C. § 41712. It is also intended to provide a reminder to ticket agents with respect to their

code-share disclosure responsibility, particularly as it concerns the development and provision of Internet websites

that display codeshare flights and to air carriers regarding their responsibilities in connection with the websites of

their agents.

Please refer to the U.S. Department of Transportation, "Guidance on Disclosure of Code-Share Service Under

Recent Amendments to 49 U.S.C. § 41712." document 14 CFR Parts 257.5 and 257.6 available at www.dot.gov/

or directly at: https://www.transportation.gov/sites/dot.gov/files/docs/Notice.41712.codeshare.8.pdf.

*Note - Links to third-party websites are controlled by

parties other than ARC. ARC does not operate or

control any information, products, or services on such

websites. You acknowledge and agree that such links

are provided for your convenience only and ARC is not

responsible for any linked third-party site or the linked

site itself. Your access and use of any linked third-party

site is solely at your own risk.

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Section 10: ARC Traffic Document Overview

ARC Documents - Accountable and Non-Accountable Forms

Standard Accountable ARC Traffic Documents

ARC manages ticket form code numbers from ranges allocated according to industry resolution. ARC assigns blocks

of ticket form codes to the Global Distribution Systems (GDS), also known as System Providers, for issuance of ARC

documents by accredited travel agency locations. The first digits of each 10-digit ticket/document number represent

the form code identifying the type of industry document issued, such as an Electronic Ticket (ET) passenger ticket,

Electronic Miscellaneous Document (EMD) or automated Miscellaneous Charges Order (MCO). The remaining digits

of the 10-digit ticket number are considered serial numbers.

After assigning blocks of form codes to each GDS, ARC constantly monitors the usage of each form number range

until it has been exhausted. Prior to the depletion of that range, ARC moves on to the next available range and

assigns a new block of form codes to the GDS. Eventually, ARC must repeat (or recycle) a previously issued form

code range. It is normal for a range to be recycled approximately every 3 to 4 years.

The following accountable ARC documents are available for use by ARC-accredited travel agents and are settled in

the weekly IAR sales report:

ARC Document Types (As of June 01, 2022)

Form Code Range

ARC Pay (formerly TASF)

0500 – 0999

Electronic Ticket (ET)

7000 – 7999

8000 – 8299

Electronic Miscellaneous Document (EMD)

8300 – 8959

Debit Memo (Airline generated*)

8960 – 8969

Credit Memo (Airline generated*)

8970 – 8976

Automated Agent Deduction (AAD)

8977 – 8979

Recall Commission Statement (Airline generated*)

8980 – 8989

Automated Miscellaneous Charges Order (MCO)

8990 - 8999

* Although each Airline originates these adjustment memo forms, the recommended common format greatly facilitates

handling and processing.

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Standard Non-Accountable Forms

The following non-accountable forms are no longer required or used. These forms are included here for informational

purposes or to use for the direct settlement of a transaction with an airline. Click the form number for a PDF version of

the form:

Form

Stock Number

Ticketing Form

Universal Credit Card Charge Form (UCCCF)

1201

Refund Exchange Notice (REN)

2564

Adjustment Form

Sales Summary Adjustment Request

1282

Destroying Unused ATB Paper Traffic Documents

All unused paper ATB ticket stock is obsolete. Paper airline tickets were eliminated on June 1, 2018, and paper

Miscellaneous Charge Orders (Auto MCOs) were converted to a paperless format effective December 17, 2020. At that

time, ARC eliminated the distribution of all blank Automated Ticket and Boarding Pass (ATB) stock and other non-

accountable paper forms. The printing and distribution of physical ATB stock for the sole purpose of printing MCO exchange

coupons and passenger receipts is a non-essential capability that ARC, travel agencies, GDSs, and airlines no longer

needed. Consequently, the MCO is now considered to be a “paperless” document.

Agents should destroy any remaining ATB supplies to eliminate the need to secure and store this unused ticket stock.

Agencies should destroy all unused remaining paper ATB stock and submit Form 116 - Affidavit of Traffic Document and

Airline Identification Plate Destruction. This form is also available in the ARC Form Catalog.

Preparing the "Affidavit of Traffic Document and Airline Identification Plate Destruction"

Download and complete Form 116 - Affidavit of Traffic Document and Airline Identification Plate Destruction. Prepare

the affidavit carefully and proofread the stock control numbers to ensure accuracy. You may email the completed form

to ARC at [email protected]. Once you send the completed form to ARC, you must destroy the documents and/or

plates listed on the form per the ARC destruction guidelines.

Methods for Destroying Ticket Stock

Due to chemical emissions into the environment, it is illegal in many municipalities to burn carbonized manual documents, or

thermal or magnetic stripe ATBs. Shredding is the common means of ticket destruction. If your agency does not have

access to a shredder, there are companies in many cities that will destroy documents for a fee. Paper documents can also

be hand-torn into thirds.

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Methods for Destroying Airline Identification Plates

Airline validation plates are obsolete and are no longer issued or used in the manual ticket validation process because

manual airline tickets are also obsolete. Any airline plate you do not wish to retain must be cut in half, which can be

done using heavy-duty scissors or any other means. There are document destruction companies throughout the U.S.

that will destroy the plates for a fee.

Please Do Not Return Any Ticket Stock or Airline Identification Plates to ARC

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Section 11: ARC Specialist Training and Certification Program

Overview

The ARC Specialist Training and Certification Program provides travel agents with training, an examination and certification to

become an ARC Specialist (AS). The AS is a travel agent who has demonstrated the knowledge of ARC's Area Settlement Plan

(ASP) by passing a stringent training program followed by an examination. All travel agents who successfully pass the exam receive

a certificate and the “ARC Specialist” designation.

Once the ARC Specialist certification is received, an agency’s owner can officially designate this person to be the ARC Specialist for

their agency. This person is typically responsible for the day-to-day ARC functions for their agency. The designation is dependent

on ARC's approval.

Purpose

The purpose of the certification program is to make certain that all new ARC-accredited agencies have at least one (1) person on

staff that is knowledgeable about ARC's operations, and ARC's processing and settlement plan. This will ensure that each ARC-

accredited agency has the ability to maintain the day-to-day ARC functions, including ticketing sales reporting. In addition, it also

provides the ARC-accredited agency with someone who is familiar with the Agent Reporting Agreement (ARA). All agency locations

that would like to become an ARC-accredited agency must have an AS on staff.

Once a certification has been obtained, it is valid for as long as the AS maintains the certification through the annual continuing

education process. For additional information about the ARC Specialist Training and Certification Program, please send an email

to [email protected].

ARC Specialist Continuing Education

The Continuing Education (CE) courses are available only to current ARC Specialists. These courses are available online only at

www.arconlinetraining.com.

ARC Specialist must complete one (1) CE course each year by the end of the calendar year to maintain their ARC Specialist

certification.

Curriculum

The following is a list of topics that are covered within the ARC Specialist Training and Certification Program:

• ARC 101

• ARC’s Agent Reporting Agreement (ARA)

• Travel Agency Participation

• My ARC

• Document Types

• Taxes, Fees and Charges

• Payment Card Processing

• Ticketing

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• ARC’s Sales Reporting Process

• Interactive Agent Reporting (IAR)

• ARC’s Void and Modification Rules

• Adjustments

• ARC Memo Manager (AMM)

• Best Practices for Effective Debit Memo Resolution and Prevention

• Refunds and Exchanges

• Tackling Refunds and Exchanges

• ARC Pay

• IAR Back Office System (BOS)

• Document Retrieval Service (DRS)

• New Distribution Capability (NDC)

Training Format

The ARC Specialist training and examination are offered in a classroom format at ARC's headquarters in Arlington, VA, or at a

specified ARC site location. In addition to the classroom format, a self-paced course and examination can be taken online, at the

ARC Online Training site. This enables you to take the course and examination on any day and time you choose.

The ARC Specialist examination must be completed within 90 minutes. This applies to both the classroom and online format. A

passing score is 70% and higher.

Cost

The following training and/or examination fees are per person:

• Training and Exam (Online) $550

• Training and Exam (Classroom Format)* $550

• Training Only (Online) $450

• Exam Only $300

• Continuing Education Course No Fee

*For the classroom format, the exam is offered online. Agents will have 30 days to complete the online exam upon completion of the

training.

Refund Policy

If the registrant needs to cancel a registration for a class and/or examination, the registrant must notify ARC via e-mail at

[email protected] immediately. A cancellation fee will be applicable. The penalty fee is as follows:

• Cancellations received at least three (3) weeks (21 calendar days) prior to the first day of the class will be assessed a

$75.00 penalty fee.

• Cancellations received two (2) weeks (14 calendar days) prior to the first day of the class will be assessed a

$200.00 penalty fee.

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• Cancellations received one (1) week (7 calendar days) or less prior to the first day of the class will result in a forfeiture of all

tuitions paid.

Please note, there are no refunds for the online training and/or examination. NO EXCEPTIONS WILL BE MADE.

No Show Policy

If the registrant fails to attend class and does not cancel or transfer a registration, the registration is considered a "No Show.”

All fees paid, will not be refunded. NO EXCEPTIONS WILL BE MADE.

Transfer Policy

If the registrant is unable to attend a registered class, the registrant has the option to transfer the registration to another person.

The original registrant must send their notification of the transfer to ARC via e-mail at ARCSpecialist@arccorp.com at least one (1)

week (7 calendar days) prior to the first day of the class.

Schedule and Registration

ARC provides various educational resources, webinars, networking opportunities, and classes. The event and class schedule

are located on the ARC corporate website. When registering for the classroom option of CE courses, it is strongly advised to

When registering for a class, a confirmation e-mail is sent to the registrant once the registration has been processed. The e-mail

will specify the class location, hotel information, and the materials the registrant will need to bring to the class and examination.

For the online training and examination, the registrant will have 90 days to complete the training and examination. The 90-day

timeframe begins immediately after successfully registering. In addition, the online examination must be completed within 90

minutes upon initiation of the examination.

Revocation of Certification

ARC reserves the right to revoke an ARC specialist certification for cause at any time. The reason and basis for revocation

include but are not limited to the following:

• Material misrepresentation in any part of the ARC Specialist registration process.

• Cheating during the examination.

• Knowingly compromising the examination.

• Misrepresentation of identity during registration.

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Section 12: Fraud Prevention Program

As a trusted source of fraud prevention education and investigative support to the travel industry, ARC's team of fraud analysts

works in partnership with travel agents, airlines, law enforcement and global distribution systems to mitigate financial losses.

As part of ARC's commitment to provide our customers with up-to-date fraud prevention solutions and best practices to minimize

losses due to fraud, our fraud prevention area on ARC's website, includes valuable resources, best practices, and training

programs to help support our customer efforts to make the U.S. travel agency sales channel a safe and secure place to shop and

do business. Please check out ARC's Fraud Prevention area at https://www2.arccorp.com/support/fraud-prevention.jsp.

Due to the sensitive and proprietary nature of the fraud prevention information, certain information is only accessible through the

password protected My ARC site. Please see Section 3 of the IAH for information about My ARC.

Other Fraud Prevention Programs Audit Program

The primary purpose of the audit program is to review and inspect the ARC Traffic Documents supplied in trust to the Agents, as

well as the Agent's records of transactions issued on ARC Traffic Documents, in order to review compliance with the ARC Agent

Reporting Agreement (ARA). This activity is conducted pursuant to Section 10 of the ARA. The principal areas reviewed during

an agency audit are:

• Reporting of air transportation sales and ancillary services issued on ARC traffic documents.

• Accountability of ARC traffic documents.

• Issuance of ARC traffic documents .

• Ownership verification.

Records such as the following may be reviewed:

• Weekly sales summaries and supporting documents covering the past two (2) years.

• Voided ARC Traffic Documents.

Audits are assigned based on information developed by ARC and/or received by ARC from carriers, consumers, or other Agents.

The inspection may take place on-site at the Agent's location.

The Agent will be apprised of the reasons or purpose for the audit. Due to the nature of the audit function, scheduling logistics, and

priorities, a specific time and date cannot always be arranged. ARC will endeavor to conduct the audit inconspicuously and without

undue disruption of routine office business. Arrangements should be made to provide the auditor with a suitable workspace in the

agency.

ARC auditors will provide identification prior to commencing the audit. If there is any doubt about the person's identity, the Agent

should call the ARC's fraud prevention team at +1 703-816-8137 for verification. The auditor will also explain the scope of the

audit and identify the documents to be reviewed. If the auditor needs to copy certain documents, and copying equipment is not

available in the agency, the Agent may accompany the auditor to make the needed copies.

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Recommended Computer Security Practices

ARC recognizes that many travel agencies may have their own carefully planned internal Information Security Policies. The

information stored in an Agent's computer system is obviously very sensitive to the agency, its customers, ARC, individual carriers,

credit card companies, and others. Agencies should protect such sensitive information from external and internal intrusion.

For agencies that currently do not have an Information Security Policy, ARC strongly recommends that one be developed. A

Security Policy has two (2) purposes: 1) protecting the Agency from inappropriate resource use, security risks, and legal liabilities;

and 2) ensuring the Agent's employees efficiently and effectively use resources for appropriate applications. A Security Policy

should be clear and specific in detailing the guidelines that should be followed.

Some of the more commonly included areas within an Information Security Policy include:

• Network Acceptable Use Guidelines.

• Logging and reporting, such as significant events, all user accesses, etc.,

• Virus protection requirements.

• Access restrictions, such as inbound and outbound, specific applications or protocols, etc.

• Protecting proprietary and sensitive information, such as encryption, integrity, usage and disclosure issues, data

ownership, etc.

• Support resources, such as who authorizes usage/access, internal problem reporting, etc.

• Implementing data access rules, or protocols to specify what can be accessed, how to access it, and for what purpose.

• Prohibiting disclosure of data to third parties or others and the handling of data requests from government authorities.

• Authenticity of the receiving party credentials (e.g., email address) should be verified for all data transfers.

• Establishing workstation security measures such as, operating systems are no more than one generation old, configuration

of password-protected screen saver, among others.

• Requiring secure data transfer methods, such as HTTPS, SFTP, or VPN for all data transferring.

• Installing physical safeguards such as, privacy screen filters for monitors and using power strips, surge protectors, and

battery backup systems.

The use of layered security to protect your agency's data is essential. Layered security protects your key network access points and

protects against multiple types of attacks. Also, if one layer of security is penetrated, the other layers should continue to protect your

sensitive data. Types of security layers include:

• Using current antivirus software, properly configured and updated daily.

• Using a software-based personal firewall.

• Employing a router/firewall device for your Internet connection Updating.

your operating system with security updates Updating your applications

with security patches.

• Patch updates should be current and installed

When developing an information security policy or just securing your network, ARC recommends reviewing information

on the following websites as a starting place.

• CIS

• SANS

• NIST

• PCI DSS for ARC and ARC Agents

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ARC also recommends implementation of a security policy for mobile computing. Such a policy may include:

• Enabling auto-lock and password protection.

• Ensuring browser security settings and SSL (secure sockets layer) protection, if available, is configured.

• Disabling remote access features not in use such as Bluetooth, infrared, or Wi-Fi and setting them to non-discoverable.

• Unknown Wi-Fi networks should not be joined.

• Devices should be scanned periodically (e.g., monthly)

• Applications should be downloaded only from trusted sites.

• If confidential data must be accessed or stored using mobile devices, encryption should be enabled.

• Up-to-date software is maintained on device, including operating systems and applications.

• Device should only run on manufacture approved firmware or operating systems.

• The automatic update option should be selected on mobile devices.

• Use tracking software or features to support recovery of any lost or stolen devices.

• Passwords for any application that has been accessed using the mobile device should be changed immediately if the

device is lost or stolen.

• Remote Data Erasure tools should be used to manage remotely devices (e.g., smartphones or company laptops), so data

can be wiped from the device using mobile device management (MDM).

Training Requirement

ARC requires all Agency personnel who issue tickets to complete ARC training twice per year. ARC trainings will be made available

to Agents via webinar and at [INSERT URL]

In order to complete the training, ARC requires the user to watch the required video and complete a quiz and form to attest that the

material has been studied. ARC will maintain a record of this attestation to ensure compliance with the provisions of the ARA.

An Agent may opt out of the Training Requirements by demonstrating to ARC, in its sole discretion, that it requires training of any

employee or contractor who issues ARC Traffic Documents. If Agent opts out of the Training Requirement, the Agent must furnish to

ARC upon demand within five business days the content and completion date of the training Agent required. In order to opt out, an

Agent must be able to show, at a minimum, that its training occurs at least twice per year and conforms with the following requirements

• Be administered through a Learning Management System (LMS) that can assign, track and verify module completion with

date and time

• Assign at least two or more modules per year to each employee

• Have modules that are a minimum of three minutes in length and have at least a two question quiz after each module for

knowledge retention

• Contain the following modules which must be assigned within a two year period:

o Secure Passwords

o Phishing

o Mobile Devices

o Acceptable Use

o Securely Working from Home

o Cloud Security

o Data Privacy

o PCI

• Have employees perform general security training on hire in addition to requirements above

• Have employees acknowledge adherence to written security policies annually

Not withstanding anything in the forgoing, ARC may determine whether an Agent may opt out of the Training Requirement at its sole

discretion.

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Section 13: Independent Arbitration Panel Rules of Procedure

Introduction

These rules govern appeals to the Independent Arbitration Panel (Panel) from determinations of the Airlines Reporting Corporation

(ARC) in accordance with the certificate of incorporation of ARC. Paragraph Fifteenth of that document deals with, among other

things, the composition, selection, and decisional authority of the Panel; defines the type of ARC "determination" which is subject

to appeal, as well as the limitations on the Panel's jurisdiction in such matters; and contains a description of the persons who may

appeal. Paragraph Fifteenth is reproduced as Attachment I to these rules and made a part hereof by reference.

Except where it is inconsistent with its requirements, the Panel reserves the right to alter, amend, and modify these rules as

experience requires. It may also waive particular rules in an appeal proceeding where appropriate in the interests of fairness.

1. The Travel Agent Arbiter Program, Inc.

The Panel is housed within the Travel Agent Arbiter Program, Inc. (TAAP) for administrative purposes. TAAP, therefore, provides

all administrative, budgetary, clerical and other support services for the Panel. In this capacity, TAAP shall serve as the recipient

of all filings called for by these rules, which are to be addressed to the Panel in care of TAAP, PO BOX 76 Lafayette Hill, PA

19444; [[email protected]; telephone +1 610.590.4034].

2. The Panel

The Panel, consisting of three regular members, will designate a chairman, an office which will be rotated among the members

periodically. The Chairman will be responsible for dealing with TAAP on behalf of the Panel on all administrative and procedural

matters that do not require the panelists’ attention.

3. The Parties

The parties to an appeal proceeding are the appellant and ARC. Unless the Panel directs otherwise, other persons having an

interest in the subject matter of an appeal will make their positions known to the Penal through either party.

4. Notice of Appeal

An appeal proceeding is instituted by the filing of a notice of appeal within 15 calendar days after the date of the determination

being appealed. The notice shall be accompanied by a check or money order in the amount of $1000 from each named Appellant,

payable to the TAAP, which will be used to defray all or part of the appellants' share of the expenses incurred by the Panel in the

proceeding.

The notice of appeal shall contain a narrative description of the determination, its procedural history, the relief requested,

and other facts necessary to establish the Panel's jurisdiction.

5. Appellant's Supporting Documentation

Within 30 calendar days after the filing of the notice of appeal, the appellant may file documentation in support of its appeal.

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Such documentation shall clearly identify evidentiary material on which the appellant relies and separate it from an argument

supporting the appellant's position. If evidentiary exhibits are submitted and require explanation, each should be accompanied

by a narrative. Conclusions that the appellant wishes the Panel to draw from the evidence shall be separately stated as an

argument.

6. ARC's Answer

ARC's answer shall be filed within 20 calendar days after the date of receipt by ARC of the appellant's documentation. The same

requirements as to content specified in Rule 6 shall apply.

In addition, ARC's answer shall contain a concise and complete response to all allegations and requests for relief contained in the

appellant's pleadings. It shall clearly indicate which such allegations or requests are not contested.

7. Appellant's Reply

The Appellant's reply shall be due 15 calendar days after it has received ARC's answer. The appellant shall also indicate the

specific areas of agreement and disagreement with ARC's position as reflected in its answer.

8. Hearings

The parties shall notify the Panel in writing, by no later than the due date for the appellant's reply, whether they desire an

evidentiary hearing, an oral argument, or both.

If the Panel determines pursuant to such a request, or on its own initiative, that a hearing is necessary or desirable, it will enter an

order within seven (7) days after receiving the appellant's reply setting the matter for hearing no later than 45 calendar days from

the date of such order. The order will set forth such procedural ground rules for the conduct of the hearing as appropriate.

9. Stenographic Record

Ordinarily, a stenographic record of a hearing is the responsibility of the party desiring it, who shall make the necessary

arrangements, coordinate them with TAAP acting on the Panel's behalf and with the opposing party, and pay the costs. However,

on its own initiative, the Panel may direct that such a transcript be made, in which case the costs will be divided equally between

the parties.

10. Decisions

The Panel will render a written decision and serve it to the parties within 30 calendar days after the close of the record. The record

shall be deemed to be closed upon the conclusion of the hearing or upon the filing of the last pleading in the appeal authorized by

the Panel, whichever shall later occur.

The written decision shall contain separately stated Findings of Fact (in numbered paragraphs) and Conclusions of Law. It shall

provide a clear and concise statement granting, rejecting, or otherwise making recommendations concerning appeals.

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11. Filing and Service of Documents

As indicated in Rule 2, all pleadings addressed to the Panel and authorized by these rules are to be submitted for filing to the

Office of TAAP. The filings should be made in an original and four (4) copies and shall be served by the party submitting them

upon the other party.

All such documents and pleadings shall be filed and served by messenger, express mail, or expedited courier delivery services.

They will be considered to have been filed and served when actually received.

Other communications, such as letters and notices, may be filed and served by ordinary first-class mail.

If the due date for a filing falls on a Saturday, Sunday, or Federal legal holiday, the date for filing will be extended to the next

business day.

No pleadings other than those authorized by the rules shall be accepted for filing and docketed without the prior approval of

the Panel.

12. Prohibited Communications

No party shall offer, nor shall any panelist entertain, any private communication, written or oral, with respect to the merits of a

pending appeal. All procedural requests shall be addressed to the Panel in care of TAAP, not to the Chairman or other

panelists.

13. Retention and Release of Panel Records

The records of appeal proceedings, including the pleadings, transcript of the hearing, if any, and the decision, shall be retained at

the Office of TAAP for such period as the Panel shall direct. No part of any record shall be released to a non-party by TAAP or

any panelist without the express consent of both parties to the appeal proceeding in question.

14. Costs

The costs incurred by the Panel as the result of an appeal proceeding shall be divided evenly between the parties as follows:

fifty percent from ARC, and fifty percent from all of the appellants combined.

Attachment 1 - Certificate of Incorporation of Airlines Reporting Corporation, a Closed Corporation

******************

Fifteenth. The Corporation shall establish an Independent Arbitration Panel (IAP) comprised of three persons, none of whom may

be employed by or affiliated with the Corporation, any air carrier (Carrier), any travel agent (Agent), or any agent association or

organization. The three (3) persons and their terms of office shall be selected by the Corporation's Joint Advisory Board - Agent

Reporting Agreement (JAB-ARA); however, such selection and terms shall be subject to ratification by a majority vote of the Board

of Directors of the Corporation (the Board).

The Corporation hereby delegates, subject to the terms and conditions of the Article, authority to the IAP (1) to hear appeals on

any matters affecting agents and the Corporation, and (2) to grant or reject, or otherwise make recommendations

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concerning appeals.

Each such appeal must be in writing, be made by at least two (2) members of the JAB-ARA, one of whom must be an Agent

organization, after the matter being appealed has been reviewed by the JAB-ARA and subsequently by the Board, and be made

to the IAP within 15 days following the Board's determination with which the two or more members of the JAB-ARA disagree.

In each appeal in which the relief requested is to direct that the Board implement a proposal that it has rejected or has failed to

act upon, the appellants shall sustain the burden of demonstrating to the IAP that the proposal is fair and equitable to all parties

and that the Board has unreasonably withheld its approval.

"Determination," as used in this resolution, means both an action taken by the Board and the failure of the Board to act on a

proposal; provided that in each appeal made with respect to a failure of the Board to act on a proposal the proceeding shall stay

automatically for 60 days from the filing of the notice of appeal.

Notwithstanding the above, the IAP shall have no power to hear an appeal regarding the following:

1. A proposal related to those provisions of the Corporation's Agent Reporting Agreement that establishes initial accreditation

standards (other than financial standards).

2. A proposal arising from the good faith review of possible alternatives to the Corporation's uniform remittance procedure, or

from the good faith review of the Corporation's bond requirement, which reviews were undertaken pursuant to, respectively,

paragraphs 8 and 9 of the settlement agreement dated April 7, 1987 between the Corporation and the other parties to

Association of Retail Travel Agents, Ltd. (ARTA) v. Air Transport Association of American, et al., Civil Action No. 84-2942,

(D.D.C. April 8, 1987).

3. Any matter that was specifically addressed and agreed upon in the settlement agreement (other than the determination by

the Board to change arrangements agreed upon in the settlement agreement).

4. Any matter relating to the internal administration of the corporation.

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Section 14: Office of Travel Agent Arbiter Rules of Practice and Procedure

Address

The office of the Travel Agent Arbiter is located at:

PO BOX 76

Lafayette Hill, PA 19444

+1 610-590-4034

Email Address: [email protected]

Guide to the Arbiter's Rules of Practice and Procedure

(Ed. Note: This guide was prepared and provided to ARC by the Travel Agent Arbiter)

This quick-reference guide to the Travel Agent Arbiter's Rules of Practice and Procedure (which follow in their entirety) is

designed to assist the agent who may be unfamiliar with either the Travel Agent Arbiter Program or the arbitration process, or

both. It is not meant to be a substitute for the Rules, but merely a starting point for the uninitiated.

1. What kind of cases can the Arbiter resolve?

Virtually any dispute regarding any aspect of the ARA between the Airlines Reporting Corporation (ARC) and the agent if the

parties are unable to resolve it informally. Either the agent or ARC may file a complaint against the other. Typical disputes:

ARC's 'finding' that "reasonable care" was not used for the security of ticket stock in a daytime theft; ARC's disapproval of an

application; an agent's request to release it from the "personal guaranty of performance.”

Any dispute between an ARC-approved Agent and a Carrier party to the ARC Carrier Services Agreement, in which all parties

to the dispute have consented in writing to (1) the jurisdiction of the TAA and (2) the final and binding nature of the decision

rendered therein (see Section. 2.E. Rules).

Certain matters between ARC and an Agent that is party to the ARC Pay (TASF) Agreement, where all parties to the dispute

have consented in writing to (1) the jurisdiction of the TAA and (2) the final and binding nature of the decision rendered.

2. What can't be brought before the Arbiter?

Questions involving matters of "general applicability” or ARC policy matters are usually not appropriate (although the

Independent Arbitration Panel may be the correct forum for these disputes). Also, any dispute already in court, unless directed

by the court or such agent/carrier disputes as debit memos, commission or fare structure disputes, or an individual carrier's

revocation of the agent's appointment are excluded. However, such agent/carrier disputes may be brought to the arbiter if both

sides agree to do so in writing (see Section 2.E Rules).

Any matters between the ARC and an Agent party to the ARC Pay (TASF) Agreement, where one party or more to the dispute

has not consented in writing to (1) the jurisdiction of the TAA and (2) the final and binding nature of the decision rendered

therein.

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3. Who is the Arbiter, what is an Arbitration, and what will it cost?

The TAA is a neutral, impartial third-party whose authority to resolve disputes in a final and binding manner is established in the

Agent Reporting Agreement (ARA) and /or various ARC resolutions or agreements. The TAA is an employee of a non-profit

corporation funded in equal parts by the agent community and the airline industry through assessments collected by ARC;

however, neither has any influence over the Arbiter in any proceeding. The TAAP’s Board consists of three agent groups and three

airline representatives; ARC is not a member.

Arbitration is a quicker, less expensive method of resolving legal disputes without court litigation. The rules are flexible and the

proceedings informal and relatively brief. The decisions will be final and binding on both sides.

No costs are assessed in an ARC-Agency case involving the ARA; the TAA's expenses are paid by the Program, which receives its

funding through a small share of the annual ARC assessments.

However, all costs incurred by the TAA, where ARC and Agent granted the TAA jurisdiction, in acting upon a matter involving ARC

Pay (TASF), shall be assessed in equal shares against the parties to the dispute. All monies so collected shall be retained in the

funds of the TAAP and used to affect the costs of operating the office of the TAA in whatever manner the CEO and Board of TAAP

decide.

All costs incurred by the TAA in acting upon a dispute between an ARC-approved Agent and a Carrier party to the ARC Carrier

Services Agreement shall be assessed in equal shares against the parties to the dispute unless the TAA shall direct otherwise as

circumstances and equity require. All monies so collected shall be retained in the funds of the TAAP and used to affect the costs of

operating the office of the TAA in whatever manner the CEO and Board of TAAP decide.

4. What must I do if ARC files a complaint against me?

In the usual case, the agent has 15 calendar days in which to file a response [Section 3.G.(3) Rules]; cases involving "expedited

appeals" have their own unique rules (see Section 3.E. and 3.F. Rules). Your answer must address each of the allegations and

may include your own complaint and/or request for damages. A failure to file a complete answer could result in a decision against

you [Section 3.G.(4) Rules].

a. In addition, your answer should contain the following:

• A list of available hearing dates.

• A request for or a waiver of an oral hearing.

• Specific details and facts supporting your version of events [section 3.A.(1) Rules].

5. How do I file a complaint against ARC for an ARA matter?

First, be sure the matter is within the TAA's authority. If so and informal discussions with ARC are unsuccessful, send a written

"complaint" to ARC and the TAA (be sure copies of everything you send to the Arbiter are sent to ARC at all stages). The ARA

complaint:

• Identifies the parties.

• Details the problem and supports the allegations with references to the ARA.

• Requests a specific remedy.

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• Includes a list of available hearing dates.

• Includes copies of relevant documents.

6. How does the TAA Hear Matters Involving ARC Pay?

For an ARC Pay (TASF) matter, ARC and the Agent must submit a letter signed by both parties indicating they consent to (1) the

jurisdiction of the TAA and (2) the final and binding nature of the decision rendered therein. Thereafter, each party shall submit

their own document that:

• Details the problem and supports the allegations with references to the then-current ARC Pay (TASF) Agreement.

• Requests a specific remedy.

• Includes a list of available hearing dates for a hearing at ARC’s headquarters.

• Includes copies of relevant documents.

7. What will the decision be based upon?

The Arbiter must base the decision solely on the evidence presented, either in writing and/or at the hearing, through documents

and live testimony. Each point must be established by a fair preponderance of all the convincing and substantial evidence

presented on the record.

8. What if I don't like the decision?

By the terms of the ARA and, in certain circumstances, the ARC Pay (TASF) Agreement, the parties have agreed to submit to

arbitration, which is "final and binding." Ordinarily, courts will not accept appeals based on disagreement with an arbitral decision

unless characterized by extreme unfairness or disregard of the facts or law. Courts will, however, enforce an arbitration decision

which is appropriately reached.

The TAA's Rules provide an internal appeal (sec. 7.D.) for ARA matters. Within ten days of receipt, you may ask the TAA to

reconsider the decision who may then review all or part of the record and may even reopen the hearing if an error is found or new

and previously unavailable evidence is offered. There is no internal appeal for ARC Pay (TASF) matters.

9. Are the decisions always made public?

Except for ARC Pay (TASF) matters, which shall remain confidential, once a decision is 'final,' the TAA makes it available to the

press and public. This is an important aspect of the program's emphasis on educating the industry and in demonstrating the

openness and objectivity of the process (sec.7. E.). The record, however, is not open to public access but only by written

permission of the parties.

10. How long will this all take?

Depending on the case’s complexity, a hearing can be scheduled within 30 days of the first filing of a complaint; it has been the

Arbiter's practice to issue a decision within 10-14 days of the close of the hearing.

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11. Whom do I call if I have questions?

Contact the TAA's office:

PO BOX 76, Lafayette Hill, PA 19444

+1 610-590-4034

Email Address: [email protected]

Remember, only procedural questions can be handled here. At ARC, Dauntria Reynolds, Paralegal, Law - Financial Services, is

available to handle most issues which may involve a potential arbitration. Her phone number is +1 703-816-8122, and her email is

[email protected]. Agents may feel free to discuss a possible settlement with ARC at any time prior to or during an

arbitration. The TAA will not participate in these negotiations but does encourage them wholeheartedly.

Rules of Practice and Procedure for ARA* Matters

Section 1: Guiding Principles

The Rules of Practice and Procedure of the Office of the Travel Agent Arbiter for ARA Matters are meant to assure a prompt,

efficient, and impartial review of each matter properly submitted. The rules grant to each party the following rights as a

minimum: to move for dismissal, summary judgment, or other appropriate relief; to submit in writing any relevant information

which it deems appropriate; to appear personally or through counsel and present evidence and arguments in support of its

position; to hear the evidence and arguments of the other party; to cross examine the other party. Proceedings shall be

informal, and the parties shall not be required to adhere to strict rules of evidence. Parties submitting disputes for resolution to

the Travel Agent Arbiter should understand the importance of the process and its results to the industry in general and know

that final decisions will always be made available to the public. The hearing records will remain confidential, and access will

only be permitted through written authorizations from all parties concerned. Furthermore, requests to conceal the identity of

people, places and things in these published decisions will be carefully scrutinized and will not be granted except in

circumstances where great prejudice or harm could result to one's reputation, business interests or rights generally.

The guiding principles for all decisions relating to the ARA of the Travel Agent Arbiter (TAA) include, where appropriate and

relevant, (a) the provisions of the Airlines Reporting Corporation (ARC) Agent Reporting Agreement (ARA), (b) the ARC Carrier

Services Agreement, and (c) all applicable resolutions of the Board of Directors of ARC, as well as the requirements published

in the Industry Agents' Handbook.

As used in these rules, the acronym TAA shall refer to the Travel Agent Arbiter and, except as the context may otherwise

require, each Associate Travel Agent Arbiter.

In counting days under these Rules, calendar days shall be used, unless the day for response is a Federal holiday or weekend,

in which case the next regular business day is to be considered the proper response date.

Any notice or other mailing required under these Rules shall be considered properly served if proof of actual delivery or

attempted delivery to the party's address of record is established. Any time prior to the close of the record any party may be

heard concerning any alleged failure to receive a notice or other required mailing. Each party to a proceeding herein shall be

deemed to have consented to receive such notice or mailing at its address of record. Refusal to accept delivery of any such

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document at such address shall not act as a stay of the proceeding nor prohibit the issuance or implementation of any order or

decision. Each party shall immediately advise each other party and the TAA of any change in its mailing address, phone/fax

numbers or email address which occurs during the pendency of a proceeding.

* Please note that these Rules are also applicable to Corporate Travel Departments (CTDs) under the Corporate Travel

Department Reporting Agreement (CTDRA) and to CTD applicants. Unless otherwise stated in these Rules or the CTDRA, the

terms Agent and ARA also refer to CTD and CTDRA, respectively.

Section 2: Jurisdiction

The TAA shall have jurisdiction over the following ARA matters:

A. Request to Review ARC's Disapproval of Application

A request for Review (hereinafter "Review") by an applicant which has been denied inclusion on the Agency List by

ARC. For purposes of these Rules, the term "applicant" shall include agents whose proposed changes of ownership,

name, or location has been disapproved by ARC.

B. Complaint by ARC Against Agent

A complaint against an Agent by ARC alleging that the Agent has breached any provision of the Agreement.

C. Petition to Release Personal Guaranty Requirement

A petition to release an agent of the requirement to maintain a "Personal Guaranty of Performance of Agent's

Agreement."

D. Complaint by Agency Against ARC

All individual complaints arising under the Agent Reporting Agreement (as distinguished from matters solely between

an Agent and a Carrier) except the following:

1. Policy matters, or what might be described as matters of general applicability.

2. Matters in litigation in a court of competent jurisdiction.

3. Matters which are specifically removed from the TAA's jurisdiction.

4. Decisions of the Travel Agent Commissioner issued on or before December 31, 1987.

5. Prior decisions of the Travel Agent Arbiter or an Associate Travel Agent Arbiter covering the same matter.

6. Prior decisions of ARC issued on or before December 31, 1987.

7. Revocation of an Agent's appointment by an individual carrier, under Section 11.5 of the ARA.

8. Claims arising under any provision of any State or Federal antitrust law or regulation.

E. Complaint by an Agent Against a Carrier or by a Carrier Against an Agent

Any complaint arising out of any dispute between an ARC-approved Agent and a Carrier party to the ARC Carrier

Services Agreement, in which all parties to the dispute have consented in writing to (1) the jurisdiction of the TAA, and

(2) the final and binding nature of the decision rendered therein.

All costs incurred by the TAA in acting upon a dispute between an ARC-approved Agent and a Carrier party to the

ARC Carrier Services Agreement, shall be assessed in equal shares against the parties to the dispute, unless the

TAA shall direct otherwise as circumstances and equity require. All monies so collected shall be retained in the funds

of the Travel Agent Arbiter Program, Inc. (TAAP) and used to affect the costs of operating the office of TAA in

whatever manner the Chief Executive Officer (CEO) and Board of TAAP so decide.

F. Later-Defined Subjects

Any other subject matter hereafter defined by the Joint Advisory Board (JAB-ARA) which definition is ratified by the

Board of Directors of ARC.

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G. Expedited Appeal from Inhibition of Issuance of ARC Traffic Documents, and/or Withholding/Removal of

Traffic Documents

1. An appeal by an Agent after ARC has inhibited issuance of ARC Traffic Documents (or has withheld or

removed traffic documents) based on any of the following allegations:

A. Failure to pay a dishonored ARC draft on demand.

B. Unreported sales coupled with a clear and present danger of substantial loss to the carriers.

C. Failure to submit a sales report and tender a certified check in payment thereof, within the time

frame stated within ARC's notice concerning failure to submit a sales report.

D. Any fraud situation coupled with a clear and present danger of substantial loss to the carriers.

E. A total lapse of Financial Instrument (bond, security deposit) or letter of credit coverage.

In all such cases the Agent shall have the right to request expedited proceedings in accordance with Section 13 of

these rules. Any such appeal shall conform to the filing requirements found in Section 3 of these rules.

H. Application for Approval of Emergency Provisional Remedy

An application to permit ARC to inhibit issuance of, and/or to remove or withdraw ARC Traffic Documents or take

other action against, an agent, as a provisional remedy on an emergency basis when any one or more of the following

allegations are the basis of such application:

1. An unauthorized ownership change.

2. A shortage in a settlement authorization.

3. A failure to increase a Financial Instrument to the required amount.

Section 3: Document Filing Requirements

A. General Requirements

1. Documents must be copied to all parties

Any document filed with the TAA by any person concerning any pending proceeding must be copied to all parties

contemporaneously with the submission to the TAA, who shall not act upon any such document unless it contains this

(or an essentially similar) certification: "I certify that on (date) a true copy of this entire document was mailed/delivered

to all parties, namely

Signed ------------------------“

2. Form & Contents

No precise form of Review, Petition, or Complaint is required, but each shall be legible, typewritten, prepared on 8 1/2

x 11" paper, or electronically transmitted in a format compatible with the software currently employed by the Arbiter's

office, and contain the TAA docket number once assigned. It will be the responsibility of the sending party to ensure

that any electronic transmission of material to the TAA is, in fact, received by the TAA and all parties, or in the

alternative the sending party may also transmit the material contemporaneously by fax, mail or prepaid delivery

service and so indicate on the front page thereof and in the certificate of service.

4. Waiver of Oral Hearing and Request for Pre-Hearing Conference

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Every Request for Review, Appeal, Petition, or Complaint shall contain a separately numbered paragraph indicating

the filing party's desire to have the TAA (a) conduct an oral hearing or (b) issue a decision upon the record without

hearing. Each Review, Petition, Appeal or Complaint shall also indicate, in a separately numbered paragraph, whether

the party desires a pre-hearing conference with the respondent. Such conference is subject to the provisions of

Section 5.C. herein. Failure to request an oral hearing shall act as a waiver of same; upon motion and for good cause

shown, or upon the TAA's own initiative, such waiver may be overridden in the interests of fairness and the need to

obtain a full and complete record.

4. Hearing Dates, Location

Each Complaint, each Request for Review, each Petition, each Appeal and each response thereto must have

appended a list of the dates on which the party submitting the documents will be available for hearing during the next

45 days, even though the filing party itself may not require a hearing, except in the case of an expedited proceeding. If

the complainant, applicant, petitioner, or appellant believes that for cost or other reasons it would be more practical to

conduct an oral hearing at a place other than the TAA office, it shall so state the reasons and provide a proposed

alternative location(s) and a statement of agreement to reimburse TAAP for all reasonable travel and other expenses

so incurred. Any party to the proceeding may file, within 5 days of receipt of such request (for hearing at a place other

than the TAA office), a statement in support of or opposition thereto with the TAA and the other parties.

5. Reduced Rate Carrier Transportation to Hearings

Any person participating in a proceeding before the Travel Agent Arbiter as either a complainant, petitioner, appellant,

respondent, or applicant, as those terms are referred to in the Rules, may request the TAA to issue a "Request for

Reduced- Rate Transportation" for the purpose of allowing (a) an owner, officer, partner (or full-time employee), and

(b) counsel to or another representative of the participant, to attend the hearing, at a requested 75% discount. In

addition, up to two (2) witnesses may be included at a requested 50% discount.

Any person requesting such transportation shall file with the TAA a list of the name(s) and itineraries of the persons

for whom such transportation is requested. For all witnesses a brief summary of the anticipated testimony and a

statement of its relevance to the matter will be included with the request for transportation.

Upon receipt of a properly completed and timely request, the TAA shall forward a written certificate to the requester,

whose responsibility it will be to obtain the necessary transportation. Any such reduced-rate transportation is to be

provided by the carrier solely in accordance with any terms, rules and conditions it may establish. The TAA does not

have the authority to order any carrier to provide any transportation. Failure to obtain such transportation shall not be

a sufficient reason to delay or postpone a scheduled hearing.

B. Request for Review of ARC Disapproval of Application (Sec. 2.A.)

Each Request for Review shall:

o Identify the applicant by name, location, ARC Number (agency code number) (if applicable) and include a

valid email address if available.

o Include the date(s) of the submission of the application and its receipt by ARC, and receipt of the ARC

disapproval.

o Include a copy of:

1. The application and all supporting documents which were submitted to ARC.

2. All other documents which the agent wishes the TAA to consider.

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3. The ARC disapproval letter.

C. Complaints (Secs. 2.B., 2.D., 2.E., 2.F.)

Every complaint shall:

o Identify the parties by name, location and ARC Number.

o Contain the allegations which constitute the basis for the complaints.

o Specify the provisions of the ARA which are alleged not to have been complied with (if applicable):

o set forth sufficient factual detail concerning names, dates, places and similar matters to assure that the

respondent will be fully apprised of all facts necessary for the preparation of its defense.

o describe the nature of the remedy requested of the TAA (i.e., removal or suspension from the ARC Agency

List, compensatory or punitive damages (see Sec.11), and/or an order directing the other party to act or

refrain from acting in a particular manner):

o be copied to all other parties (see Section 3).

o include a list of available hearing dates or a waiver of hearing (see Sections 6.G., 6.H).

o include as attachments copies of all correspondence between the parties which is alleged to form the basis

for the complaint.

o include as an attachment, in all cases of agent-carrier complaints, the original signed consent agreement

required in Section 2.E.

D. Petitions Re: Personal Guaranty (Sec. 2.C.)

Each petition shall identify the Agent filing the Petition by name, location, and ARC Number, and shall state that the

requirements for filing such Petition, as set forth in the ARA, have been met. The petition shall include a succinct

description of the remedy requested, with a reference to that section of the ARA allegedly authorizing such remedy.

E. Expedited Appeals from ARC Removal Actions (Sec.2.G.)

An appeal pursuant to Sec. 2.G. of these rules shall be made in writing by the agent and filed with the TAA within ten

days after ARC has inhibited issuance of ARC Traffic Documents or has removed/withdrawn ARC Traffic Documents

from the agent. The appeal shall state that it is being made pursuant to Sec. 2.G., contain a statement of the reasons

why the agent believes ARC's action to be improper, and provide a brief description of the evidence which the agent

intends to present in support of its position.

F. Application for Emergency Provisional Remedy (Sec.2.H.)

The application shall be delivered in the manner proscribed for expedited proceedings defined elsewhere in these

Rules.

The application shall describe, at a minimum, the following:

1. The legal and factual basis for the provisional remedy requested.

2. The likely extent and nature of the injury to be suffered unless such emergency action is allowed.

3. The nature and extent of the final remedy, which will be requested.

4. The complete name, office and email address and telephone number(s) of the agent(s) involved.

Upon receipt of the application the TAA will contact the agent as soon as possible, by telephone, email, telegram, or

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other means. If ARC requests an immediate hearing on the application, the TAA shall schedule the hearing within

three business days thereof and immediately notify all parties of the scheduled hearing. If the Agent is unwilling or

unable to attend the scheduled hearing, the TAA shall issue a written decision (or an oral decision if the

circumstances so warrant) on the application and promptly notify all parties thereof.

G. Respondent's Answer

1. Basic Requirements

Every named respondent to a proceeding before the TAA (unless these rules and the nature of the proceeding

require otherwise) shall specifically admit, deny, or, where appropriate, disclaim knowledge of each and every

allegation in the Review, Petition, or Complaint and set forth any defenses to the charges which will be relied

upon by the respondent. Each response shall also include the following:

• A list of available hearing dates within the next 45 days or

• A waiver of oral hearing, or

• If so desired, a request for oral hearing at a place other than the TAA office, in accordance with Sec

3.A.(4), and

• Any request for a pre-hearing conference, in accordance with Sec.3.A.(3) and Sec.5C.

Failure to request an oral hearing shall act as a waiver of same; upon motion and for good cause shown, or upon

the TAA's own initiative, such waiver may be overridden in the interests of fairness and the need to obtain a full

and complete record.

2. ARC Response to Request for Review of Application Disapprovals

In addition to the above, ARC shall include in its response a copy of all documents in its possession upon which it

relied in reaching its decision to disapprove the application.

3. Filing Times

Every answer to a Review, Petition, or Complaint shall be filed with the office of the TAA (as provided for in Sec.1

of these Rules) within 15 calendar days after receipt of the Review, Petition, or Complaint, not counting the day of

receipt. However, in the case of an expedited proceeding as defined elsewhere in these Rules, an answer shall

be filed within 72 hours of receipt.

4. Failure to Answer

Failure to answer within the allotted time frame shall constitute an admission of all allegations contained in either

the Review, Petition, or Complaint for purposes of allowing the TAA to act thereon and enter a decision and order

as may be appropriate, without further replies or proceedings unless requested by the TAA. Prior to the issuance

of a decision in such instance, the TAA will notify the respondent of such intentions at least 24 hours before any

decision is issued. If the respondent then informs the TAA within 24 hours that it wishes to furnish an answer to

the Review, Petition, or Complaint, the TAA shall consider all the facts and circumstances and, at his discretion,

may provide a reasonable response time (but no more than 10 days) in which such answer may be filed.

However, if the complainant informs the TAA that its complaint has been returned as undeliverable after

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attempted service upon the agent's address of record, and the TAA's notice to the agent has also been returned

as undeliverable, no further notice shall be necessary, and the TAA may close the record and proceed to a

decision based on the evidence submitted if appropriate under all the circumstances.

Section 4: Motions

Motions may be made or submitted by the parties at any time. Except for motions made during the course of a hearing,

motions shall be in writing, and shall set forth the grounds upon which the motion is based, the specific relief sought, and may

be accompanied by affidavit or other evidence a movant desires the TAA to consider. The pendency of a motion will not serve

to stay the procedural steps in any matter before the TAA.

Section 5: TAA's Response to Documents

A. Docket Number

Upon receipt of a properly completed Review, Petition, or Complaint, the TAA shall assign a docket number and so

inform the parties in writing. Such number will appear on all documents thereafter filed by any party. However, any

delay in receiving this notification of docketing shall not relieve the respondent from any of the other requirements of

these Rules, including the 15-day response period of Sec. 3.G., provided a copy of the Review, Petition, or Complaint

was actually received by the respondent.

B. Incomplete Documents/Motion for More Specific Statement

The TAA shall endeavor to see that all documents filed are complete and in accordance with the Rules and all other

applicable requirements. Upon a motion for more specific statement from any party, or upon his own initiative, the

TAA may request additional information as may be required for whatever reason. Such motion must be filed within the

allotted response period, upon receipt of which the TAA will either grant, modify or deny the motion and establish a

new timetable for responses from each party thereafter.

C. Pre-Hearing Conferences/Stipulations

Any party to a Review, Petition, or Complaint may request, at any time prior to an oral hearing or decision on the

record without oral hearing, as the case may be, that a pre-hearing conference be held for any purpose, including

defining issues, stipulating to evidence, and scheduling further proceedings. Any such request will be served upon the

other parties and the TAA in the same manner as any Review, Petition, or Complaint and shall clearly indicate the

reasons for such request. The TAA may schedule a pre-hearing conference when, in his opinion, the nature of the

proceeding or the request is such that the inconvenience to the parties will be outweighed by the potential benefits of

such a conference.

Any party to a proceeding may also request any other party to provide stipulations to facts, admissions, or

agreements or other procedural or substantive issues prior to hearing and may request the TAA to so order any party

refusing to provide same. Any such request will be made in accordance with the rules provided herein for the filing of

documents.

The TAA, in his discretion, shall schedule a pre-hearing conference to discuss such request or shall rule upon such

request without hearing. In either case, the TAA shall inform the parties of his decision and shall establish a timetable

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for compliance therewith, if necessary. The TAA may postpone any scheduled hearing or conference pending

compliance with such request. If a party refuses to comply with such request and/or order of the TAA, the TAA shall

proceed to conduct an oral hearing and/or issue a decision upon the record without oral hearing, as the case may be,

and may consider the reasonableness of such refusal in his decision, order and remedy as appropriate.

Any pre-hearing conference may be held by either the TAA, ATAA or other impartial third party assigned by the TAA

and acceptable to all parties.

D. Exchange of Information and Documents

Each party shall:

1. File with the TAA and all other parties not less than seven (7) days prior to any hearing a complete set of all

documentary exhibits which it intends to introduce into the record at such hearing.

2. Furnish the name, address, telephone number and summary of anticipated testimony from each witness it

intends to have testify on its behalf at the hearing.

Section 6: Hearings

A. Parties

The only parties to proceedings hereunder shall be the complainant, requester, petitioner or applicant and the

respondent(s) thereto. Additional parties may be added upon request of any person or party, subject to the TAA's

discretion and the interests of justice, equity and efficiency.

B. Representation

Any party may be represented by any person of its choosing at any stage of any proceeding hereunder. For purpose

of service of documents pursuant to these Rules, service upon such representative shall constitute service upon the

party, until such representation is withdrawn in a writing served upon all parties and the TAA.

C. Notice and Location of Hearing

Except in the case of expedited proceedings, the TAA shall notify all parties in writing of the time, date and location of

all oral hearings and conferences at least ten days prior thereto, where feasible.

D. Attendance

Parties, their representatives and witnesses shall be the only persons entitled to attend oral hearings, unless upon

agreement of all parties thereto. Upon the request of any party the TAA shall require any witness to remain outside

the hearing room until such witness is called upon to testify. Any properly notified party who fails to appear and has

not requested a postponement shall not be entitled to later request any further reconvening. The TAA may proceed to

take evidence and issue a decision in the absence of any party without any further notification.

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E. Order of Proceedings

In the usual proceeding, a hearing shall be opened by the recording of the place, time and date of the hearing, the

presence of the TAA and parties, and counsel or other representative, if any, and of receipt by the TAA of the Request

for Review, Complaint, or Petition, and any answers, motions or other documents. Thereupon the hearing shall

proceed in the following manner:

1. The TAA shall dispose of all outstanding motions and other preliminary matters.

2. The TAA may, if appropriate, ask for statements clarifying the issues involved.

3. The party, which submitted the request for Review, the Complaint, or the Petition, as the case may be shall

then present its claim, proofs, and witnesses qualified to sponsor the evidence it intends to offer. Such

witnesses shall be subject to cross-examination by the opposing party.

4. Thereafter, the responding party shall present its defense, proofs, and witnesses, who similarly shall submit

to cross-examination, by the applicant, complainant, or petitioner.

5. The TAA shall specifically inquire of all parties if they have any further proofs to offer or witnesses to be

heard. Upon receiving negative replies, the TAA shall permit such closing arguments as the parties may

desire to make, and then shall declare the hearing adjourned. The record will be closed at that time unless

held open for the receipt of post-hearing exhibits and/or briefs authorized by the TAA. In the latter event, the

record shall be deemed to be closed upon issuance by the TAA of a notice with respect to post-hearing

exhibits or upon the date briefs are filed, whichever shall later occur.

The TAA may vary this procedure and may take such other or further actions to facilitate and expedite disposition of

the proceeding. Proceedings shall be conducted in a manner which is consistent with the rights of the parties and

affords full and equal opportunity to all parties for the presentation of any relevant and material evidence, but no other

formal rules of evidence shall apply.

F. Record of Hearing

The TAA will provide either a tape recording or a verbatim stenographic record of each oral hearing and, upon request

of a party, arrange for a transcript thereof, the costs of which will be borne by the requesting party or parties.

In the case of a telephone conference call hearing, however, this requirement for a verbatim record shall not apply.

The record upon which the TAA's decision shall be based shall consist of the oral hearing tape or transcript, if any,

and all exhibits received by the TAA in evidence.

In the case of the loss or failure to the recording equipment or tape(s), the TAA may base the decision solely on his

own notes and recollections in addition to exhibits. In such event the TAA shall notify the parties of such loss in

advance of the issuance of a decision and take any further action appropriate to the circumstances.

G. Evidence

1. Oral hearings

Any party may offer evidence, subject to the ruling of the TAA, at any properly noticed hearing session.

The TAA shall admit all relevant material and non-repetitious evidence and testimony.

219

2. On-the-record decisions

Whenever the parties have waived their right to oral hearing, the parties may offer any evidence for the TAA's

consideration by submitting a copy thereof, in identical form, to all other parties as well as the TAA.

H. Dismissal

Any party may request dismissal of the proceeding at any time by motion to the TAA, provided, however, that once an

answer or other responsive pleading has been filed no party may seek to have the proceeding dismissed for the

purpose of litigating the claims in the proceeding in federal or state court or before some other governmental body. In

the case of an oral hearing such motion shall only be made in the presence of other parties at such hearing. In the

case in which such hearing has been waived the movant shall copy all other parties and the TAA shall inform all

parties in writing of his ruling prior to issuing a decision.

The TAA on his own motion may dismiss any proceeding if he determines the moving party has failed to establish a

prima facie case of its allegations. Any such dismissal shall be in writing and be considered a final decision under

these Rules.

I. Withdrawal

No party may withdraw from any proceeding for the purpose of litigating the identical claims in a state or federal court

or before any other governmental body.

Subject to the above limitation, any party that initiates a proceeding before the TAA may withdraw it at any time prior

to the issuance of a decision.

J. Adjournments/Postponements

The TAA may adjourn, postpone or grant an extension of time to any party for any purpose upon a showing of good

cause. Any party requesting such adjournment, postponement or extension shall first notify all other parties and

attempt to obtain their consent prior to contacting the TAA. The TAA shall issue a ruling in writing or may direct the

requesting party to inform all other parties in writing of the granting of such request.

Section 7: Decisions

A. Without Hearing

Once the parties have submitted their evidence, unless the TAA believes that additional information is necessary, he

may proceed to issue a decision without hearing in those cases where the parties have waived their rights thereto.

The decision shall be in writing and served upon the parties by certified/registered mail or priority delivery service. It

shall contain findings of facts, conclusions of law, order and remedy in paragraphs separately stated, and shall state

the date on which such decision shall be considered effective.

B. After Hearing

220

Following the close of any oral hearing the TAA shall consider the testimony and evidence submitted to him and

proceed to issue a written decision, with findings, conclusions, order and remedy separately stated. Such decision

shall be mailed, certified/registered, return receipt requested, or sent by priority delivery service, to all parties.

C. Binding Effect/Judicial Enforcement

All decisions, whether following oral hearing or not, shall be binding on the parties and considered final, subject to the

provisions for reconsideration below (Sec. 7.D.). However, any party may seek judicial relief to enforce the decision.

Subject to the final and binding nature of the decisions rendered hereunder, nothing herein shall affect adversely any

party's rights to seek judicial relief to enforce any of the terms of the Agent Reporting Agreement.

D. Reconsideration

Within ten calendar days of receipt of the decision, any party thereto may request the TAA to reconsider such

decision, in whole or in part, by filing a request with the TAA. Such request shall:

o Be copied and filed contemporaneously with the other parties.

o State briefly and succinctly the grounds on which the reconsideration is sought.

1. If the grounds allege error, the matters of record alleged to have been erroneously decided will be

cited with appropriate references to testimony or exhibits which are alleged to support the claim.

2. If the grounds allege newly discovered evidence, the request will specify such evidence in its

entirety, state the reason why such evidence was not presented at the hearing (if appropriate), and

state the reasons why due diligence could not have discovered such evidence earlier. The request

shall also set forth any alleged impacts such evidence would likely have on the decision.

A successive petition for rehearing, re-argument, or reconsideration filed by the same party or parties, and upon

substantially the same ground as a former petition which has been considered by the TAA shall be denied. Any party

to the decision may file a response to such request for reconsideration within ten days of receipt. The response may

include a request for (a) a reopening of the hearing, (b) a denial of the request, or (c) additional time in which to

respond to the request. The TAA shall then proceed to either (a) issue a revised decision based on the request and

response(s), or (b) deny the request, or (c) reopen the record and/or the hearing on such terms as he deems

appropriate to the situation, after which the TAA shall issue a revised decision, the effect of which will be to revoke the

earlier decision unless specified otherwise by the TAA. The effective date of any decision shall be stayed pending a

ruling on any properly submitted request for reconsideration, unless otherwise provided by the TAA in the decision.

E. Public Release of Decision and Finality of Decision

Five days after a decision is considered to be final, the TAA shall make such decision available to the public. Pending

such decision, the TAA shall not comment publicly on the identity of the parties, or the issues involved in such

proceedings except to the extent any such comment is necessary to the fulfillment of the TAA's duties under these

Rules. For these purposes a decision shall be considered final when either (a) more than ten (10) days have passed

since the receipt of the initial decision by all parties and no timely request for reconsideration has been filed with the

TAA, or (b) after a timely request for reconsideration was filed the TAA has either (i) issued a revised decision or (ii)

denied the request.

221

F. Ex Parte Communications

The TAA and his staff shall be available at all times to provide general information concerning the operations of the

office, to receive comments and suggestions with respect thereto, and to respond to questions concerning practice

and procedure. All such inquiries are welcome. However, no party shall offer, nor shall the TAA and his staff entertain,

any private communication with respect to the merits of any matter involved in a pending proceeding. Except for

procedural inquiries and at conferences conducted upon due notice to those concerned, communications addressed

to the TAA concerning pending cases shall be in writing and served upon all parties.

Section 8: Standards of Conduct

The TAA and persons appearing before him shall conduct themselves in accordance with the highest standards of professional

ethics. The TAA and his staff, in all proceedings, and in accordance with the provisions of the applicable ARC Agreements,

shall:

• Decide cases in a fair and impartial manner upon the basis of the record developed in a given proceeding, free from

all extraneous influences.

• Accept no things of value, honorariums, or fees for any kind from any person who has, or may reasonably be

expected to have, business before the TAA.

• Avoid any real or apparent conflict of interest, whether financial, proprietary, personal or otherwise. The TAA shall

withdraw from any proceeding in which he has, or might be deemed to have, a conflict of interest.

• Refrain from any activity that could result in or create the appearance of adversely affecting the confidence of all

segments of the air transportation industry and the public generally in the integrity of the Office of Travel Agent Arbiter

Section 9: Amendment of Rules

Requests for amendment of these rules may be filed with the TAA at any time, and copies of such requests shall be served by

the persons submitting them on the President of ARC, the Board members of the TAAP and on such other interested persons

as the TAA shall direct. Comments concerning rule- making proposals shall be filed within the time period specified by the

TAA, who shall maintain at his offices a file of rule-making proposals and comments which shall be available for public

inspection.

Section 10: Access to and Retention of Records and Request to Expunge Identifying Information

All pleadings, correspondence, exhibits and other materials which form a part of the record for decisions in each docketed

proceeding shall be retained by the TAA for a period of one year after decision or for such further period as the TAA shall deem

appropriate. Access to such records shall be permitted only upon written authorization from the party submitting same, except

that when the TAA is served with a proper judicial subpoena for the production of any such records the TAA shall promptly

notify all parties in writing, furnish a copy of the subpoena itself, and then shall release certified copies of such records to the

court and, upon request of such court, make the originals available for inspection at the office of the TAA. Any party to a

proceeding, at any point prior to the issuance of a final decision by the TAA, may for good cause shown request that any

identifying name, place or thing be expunged from the written decision which is made public pursuant to these rules, and the

TAA shall grant such request if substantial prejudice to the rights of any party or person would be jeopardized thereby. Any

request to seal such records shall be filed contemporaneously with all other parties to the proceeding, who shall have a

reasonable opportunity to comment thereon as determined by the TAA on a case-by-case basis. In no case, however, will any

records ever be sealed against access of any party to the proceeding, and upon request of any party the TAA shall reveal to

222

them, in confidence, the names, places or things so expunged from the publicly issued decision.

Section 11: Remedial Actions

In determining the remedial action, if any, applicable in a case, the TAA shall consider all relevant circumstances surrounding

particular events involved in the case. In imposing a monetary award as the remedial action, the TAA shall follow the principle

of compensatory damages, except where the TAA finds gross negligence or willful disregard for the rights of the other party. In

each case in which a punitive monetary award is made, the money so collected shall be set aside in a separate fund to be

used for a purpose determined to be appropriate by the JAB-ARA which purpose shall be ratified by the ARC Board of

Directors. Any party may submit proposed findings, conclusions and remedial actions in lieu of or in addition to any brief. The

TAA may, upon his initiative, circulate for comment among the parties a proposed remedial plan of action or monetary or

punitive award. Upon receipt of comments by the parties the TAA may adopt, alter or reject all or any part of such comments

and such proposal and proceed to issue his decision.

Section 12: Precedent

Decisions of the Travel Agent Commissioner and the TAA and the Associate Travel Agent Arbiter shall have non- binding

precedential value only.

Section 13: Expedited Proceedings

In any case in which an expedited proceeding is provided elsewhere herein, or in any case in which a motion for expedited

proceedings is made, the respondent shall file all supporting evidence with the TAA and the opposing party within 72 hours of

receipt of the Agent's appeal or the ARC complaint, and the TAA shall schedule an oral hearing (unless waived) to begin no

later than three business days thereafter, or as soon as the parties agree. If an oral hearing is waived the TAA shall expedite

review of the documents and proceed to issue a decision within five days of the close of all proceedings therein.

Any party may object to the motion for expedited proceedings, but such objection must be received within the time allotted for a

response. If the objection is denied by the TAA, the substantive response will then be due not later than 24 hours after actual

receipt of the notice of such denial.

If either party so desires, an expedited hearing may be held by telephone conference call provided it is feasible for all parties to

so participate and the circumstances so warrant.

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Rules of Practice and Procedure for an ARC Pay Travel Agent Service Fee Matter

Section 1: Guiding Principles and Jurisdiction

For an ARC Pay Travel Agent Service Fee (TASF) matter, as a general principle, both parties desire to continue their

contractual relationship, but may need a third party to decide a dispute between the two parties. To that end, ARC and the

Agent must submit a letter signed by both parties indicating they consent to (1) the jurisdiction of the TAA, (2) the final and

binding nature of the decision rendered therein, and (3) the payment of all assessed fees and costs as determined by the

Arbiter, including but not limited to a $150 filing fee, which must accompany the initial filing of each party, and a $150 hearing

fee for each party (if one is determined to be necessary) payable to the TAAP Inc., within ten (10) days of the TAA’s decision.

The parties shall include an initial filing fee of $150 (per party). Upon receipt of such letter, the TAA shall assign a Docket

Number.

Section 2: Petitions, Responses, Hearing and Decision

1. TAA shall provide each party 7 business days to each submit their own written arguments via email to the TAA and all

other parties (hereinafter “Petition”) that:

o detail the matter and support the issues with references to the then current ARC Pay (TASF) Agreement.

o include copies of relevant documents for the TAA’s consideration.

o where applicable, identify any potential witnesses at a hearing.

o request a specific remedy from the TAA; and

o include a list of available hearing dates for a hearing at ARC’s headquarters, or when the parties agree, via a

teleconference.

2. The TAA shall review each party’s Petition and within 7 business days respond to parties with any requests for

additional information or clarification, thereafter.

3. The parties will have 7 business days to respond to the other party’s Petition (hereinafter, “Response(s)”) and submit

same to TAA.

4. Following receipt of the Responses, the TAA may render a decision. However, if the TAA deems a hearing necessary,

within 30 calendar days, the TAA shall schedule a hearing and notify the parties. Every attempt shall be made by the

TAA to accommodate the schedules of the parties.

5. If a hearing is scheduled, the hearing must take place in the location specified in the ARC Pay (TASF) Agreement, or

by teleconference, when the parties agree. A party may be represented by any person of its choosing at the hearing.

The TAA shall provide a brief description of the order of the proceedings and the issues that remain outstanding.

There will be no recording of the hearing. Either party may offer oral arguments. Except in extenuating circumstances,

oral arguments shall be based solely on the evidence and arguments proffered by the parties in their Petitions and

Responses.

6. The TAA must render a decision no later than 7 business days following a hearing. The decision shall be in writing

and issued via email, only. It shall contain separately stated findings of fact, conclusions of law, and any appropriate

order(s). It shall include a detailed assessment of costs, which shall be equally apportioned to the parties, payment of

which shall be due within ten days of the decision.

The TAA’s decision shall be confidential, final and binding on the parties, with no right to appeal to or ask for reconsideration

from the TAA.

   
 
effective: September 18, 2017 
 
ARA - IAH Sections A-0   
 Table of Contents   
                                                       
 
Contents   
Section A:  Notices ........................................................................................................................................  
 .........................................................................................................................................................................  
 .........................................................................................................................................................................  
 .........................................................................................................................................................................  
 ......................................................................................................................................................................... 
 ................................................................................................................................................................. 226 
Section B: Security Guidelines for ARC Traffic Documents ....................................................................  
 .........................................................................................................................................................................  
 ................................................................................................................................................................. 227 
Section C: Retention and Inspection of Agent Records.........................................................................  
 .........................................................................................................................................................................  
 ................................................................................................................................................................. 228 
Section D: Financial Instrument ...............................................................................................................  
 .........................................................................................................................................................................  
 .........................................................................................................................................................................  
 ......................................................................................................................................................................... 
 ................................................................................................................................................................. 229 
Section E: Carrier Participants in Agent's Standard Ticket & ARC Settlement Plan ......................... 
 ................................................................................................................................................................. 231 
Section F: Examples of Breaches by Agent ..............................................................................................  
 .........................................................................................................................................................................  
 .........................................................................................................................................................................  
 ................................................................................................................................................................. 232 
Section G: Personal Guaranty of Payment and Performance .................................................................  
 .........................................................................................................................................................................  
 ................................................................................................................................................................. 233 
Section H: Use of ARC Online Services and Tools ..................................................................................  
 .........................................................................................................................................................................  
 ......................................................................................................................................................................... 
 ................................................................................................................................................................. 236 
Section I: Examples of Change in Ownership .........................................................................................  
 .........................................................................................................................................................................  
 ......................................................................................................................................................................... 
 ................................................................................................................................................................. 238 
Section J: Instructions for Temporary Closure ......................................................................................  
 .........................................................................................................................................................................  
 ......................................................................................................................................................................... 
 ................................................................................................................................................................. 240 

   
 
effective: September 18, 2017 
 
ARA - IAH Sections A-0   
 Table of Contents   
                                                       
Section K: Reports and Settlements .........................................................................................................  
 .........................................................................................................................................................................  
 .........................................................................................................................................................................  
 ......................................................................................................................................................................... 
 ................................................................................................................................................................. 241 
Section L: Variable Remittance .................................................................................................................  
 .........................................................................................................................................................................  
 .........................................................................................................................................................................  
 ......................................................................................................................................................................... 
 ................................................................................................................................................................. 244 
Section M: Administrative and Compensatory Fees .............................................................................  
 .........................................................................................................................................................................  
 ................................................................................................................................................................. 245 
Section N: Associate Branch Supplementary Agreement .......................................................................  
 .........................................................................................................................................................................  
 ................................................................................................................................................................. 247 
Section O: Additional Office Types ...........................................................................................................  
 .........................................................................................................................................................................  
 .........................................................................................................................................................................  
 ......................................................................................................................................................................... 
 ................................................................................................................................................................. 254 
 
 
 

226

Section B

Section A: Notices

1. Unless specifically directed otherwise, any notices that are required to be given in writing must be sent using any

of the following:

1.1. U.S. mail

1.2. E-Mail

1.3. Facsimile

1.4. Government-licensed delivery service that provides a shipping receipt, air bill, or documentation of delivery

2. The effective date of any notices between ARC and Agent, for the purpose of calculating any delivery

requirements, will be the date the notice was mailed, e-mailed, faxed, or placed in the hand of a government-

licensed delivery service.

3. Any notice that is not required to be made in writing can be delivered by any common method including those

mentioned above, telephone, IAR message board, or notice on ARC’s corporate websites, such as My ARC.

4. ARC and Carriers will deliver notices to Agent’s Operational E-Mail Address (or the E-Mail address of Agent’s My

ARC Primary Administrator will be used if an Operational E-Mail Address is not provided by Agent or ARC

determines that the Operational E-Mail Address is not active) or home office address. For notices to ARC, Agent

should follow the instructions provided in the relevant sections of the Industry Agents’ Handbook. For additional

assistance, please contact the Customer Care Center.

227

Section B

Section B: Security Guidelines for ARC Traffic Documents

This Section includes the rules governing the security of ARC Traffic Documents. Adhering to these rules protects you in

two ways.

First, compliance with these rules means that you will not be held liable by ARC or the airlines for usage of ARC Traffic

Documents in the event of a theft (including shoplifting, robbery, burglary, etc.) of the ARC Traffic Documents, except by

you, your employees, or your independent contractors.

Second, adherence to the rules will act as a deterrent to criminals, who in many cases will make multiple attempts to

access your data or to obtain login credentials through social engineering and email phishing campaigns.

Not complying with these rules or exercising reasonable care for the protection of ARC Traffic Documents means that you

will be liable for usage of stolen ARC Travel Documents.

ARC Traffic Documents (Electronic Format) Agent must exercise reasonable care in the issuance or disclosure of ARC

Traffic Documents/data numbers in an electronic format, to prevent the unauthorized issuance or use of such Traffic

Documents/data/numbers.

“Reasonable care” includes effective, electronic challenges and authentication, e.g., login credentials or security

credentials, including, for example, usernames, PINs and passwords of any user accessing agent hardware, systems, or

any other systems or hardware which can be used to issue ARC Traffic Documents/data/numbers in an electronic format.

At a minimum, Agent must implement appropriate physical, electronic, and managerial procedures, training, and systems

to prevent unauthorized access, disclosure, alteration, or destruction of Transactional Data.

228

Section C

Section C: Retention and Inspection of Agent Records

1. As required by Section 12 of the ARA, Agent must retain copies of documents, included, but not limited to, the

following for a period of at least 39 months from the Submission Deadline for those documents:

1.1. Voided Traffic Documents

1.2. If any, completed Universal Credit Card Charge Forms (UCCCFs), which include cardholder signature,

credit card imprint, and authorization code.

1.3. Discount Certificates and Vouchers

1.4. Debit and Credit Memos

1.5. Value Coupons associated with refunds, exchanges

1.6. Other supporting documentation as may be required by ARC or Carriers

229

Section D

Section D: Financial Instrument

Purpose: Agent’s Financial Instrument is used after termination of the Agent’s ARA in order to cover all amounts

owed by Agent to Carriers and ARC for transactions issued on ARC Traffic Documents supplied in trust to Agent.

This includes, but is not limited to, all amounts owed for transactions that have been used but not reported or paid for;

amounts owed for dishonored drafts; and amounts owed as a result of the loss misapplication, theft, forgery, or

unlawful use of ARC Traffic Documents, unless the Agent has been relieved of liability for such under this Agreement.

1. A Financial Instrument may be in the form of a bond, letter of credit, or cash security deposit. If it is a bond, it

must be issued by a surety included on the current revision of Circular 570, “Surety Companies Acceptable on

Federal Bonds,” issued by the United States Treasury Department.

2. Agents, except for those with Associate Branches (see Section 3 below), must comply with the Financial

Instrument requirements indicated below and within Part IV, Section 30, of the Agent Reporting Agreement

(ARA).

2.1. As the Agent, you are required to maintain a Financial Instrument in the form and amount required by ARC

for the joint and several benefit of Carriers and ARC.

2.2. ARC will notify you of the required Financial Instrument amount 30 calendar days prior to the anniversary

date of your Financial Instrument. If an adjustment is required, you are required to comply with the new

requirement no later than the anniversary date.

2.2.1. If Agent requires additional time to comply with the new requirement, Agent must provide to ARC

written evidence from its financial institution of initiation of the process, including the anticipated

completion date, to update its Financial Instrument within the initial 30 day period.

2.3. ARC will set the amount of the Financial Instrument within a minimum of $20,000 and a maximum of

$70,000 for the first 2 years following your Agency’s inclusion on the ARC Agency List. In your first year,

the Financial Instrument is set at $20,000. For the second year, the amount of the Financial Instrument will

be the greater of $20,000 or the average monthly net cash remittance as determined for a 12-month period,

calculated one month prior to the anniversary date of your Financial Instrument. The Financial Instrument

will not exceed $70,000, unless your Agency has Associate Branches or becomes subject to the additional

operating requirements of Section 34 of the ARA.

2.4. After your Agency has been on the ARC Agency List for at least 2 years, the amount of the Financial

Instrument will be the greater of $10,000 or the average monthly net cash remittance as determined for a

12-month period, calculated one month prior to the anniversary date of your Financial Instrument. The

Financial Instrument will not exceed $70,000, unless your Agency has Associate Branches.

2.5. Any required change in the Financial Instrument, or any required adjustment of the amount of the Financial

Instrument, will be made each time the Financial Instrument is renewed, reinstated, or replaced, as

applicable.

2.6. If ARC determines that the Financial Instrument is less than the required amount, ARC will notify the Agent

at least 30 calendar days in advance of the anniversary date of the Financial Instrument.

2.7. If a required increase is greater than $10,000, Agent may increase the Financial Instrument in increments

of 25 percent per quarter. The Financial Instrument must be at the required amount prior to the start of the

next anniversary date. Contact the Customer Care Center to discuss incremental increases prior to your

current anniversary date.

230

Section D

3. Guaranty Levels for Agents with Associate Branches

3.1. For Agents with one or more Associate Branches the minimum Financial Instrument amount is $70,000 and

the maximum $150,000.

3.2. Agent must maintain a Financial Instrument in the form and amount required by ARC for the joint and

several benefit of Carriers and ARC.

3.3. ARC will inform Agent of the required Financial Instrument amount 30 calendar days prior to the

anniversary date of Agent’s Financial Instrument. If an adjustment is required, Agent must comply with the

new requirement no later than the anniversary date.

3.4. The amount of the Financial Instrument will be the average monthly net cash remittance as determined for

a 12-month period calculated one month prior to the anniversary date of Agent’s Financial Instrument. The

Financial Instrument will not exceed $150,000.

3.5. Any required change in the Financial Instrument, or any required adjustment of the amount of the Financial

Instrument, will be made each time it is renewed, reinstated, or replaced, as applicable.

3.6. After the approval of an Associate Branch, if ARC determines that the Financial Instrument is less than the

required amount, ARC will notify the Agent at least 30 calendar days in advance of the anniversary date of

the Financial Instrument.

3.7. If a required increase is greater than $10,000, Agent may increase the Financial Instrument in increments

of 25 percent per quarter. The Financial Instrument must be at the required amount prior to the start of the

next anniversary date. Contact the Customer Care Center to discuss incremental increases prior to your

current anniversary date.

Change of Agency Ownership

4. Whenever there is a change in ownership involving your agency, an application is required. The Financial

Instrument will be adjusted based on the type of ownership change. See Section I for examples of ownership

changes.

4.1. For a change in ownership that does not involve the addition of new owners or Entities, the Financial

Instrument will not be less than the amount required of the Agent prior to the change in ownership.

4.2. For a change in ownership that creates a new Entity with the addition of new owners, the Financial

Instrument will be a minimum of $20,000 or the amount required of the Agent prior to the change of

ownership, whichever is greater. As with new Agents under paragraph 2.3, the Financial Instrument

amount will remain in effect for at least 2 years.

4.3. For a change in ownership that includes an Associate Branch, the Financial Instrument will be as stated in

Section 3.

231

Section E

Section E: Carrier Participants in Agent's Standard Ticket & ARC Settlement Plan

All ARC participating carriers, as listed in Section 1 of the Industry Agents’ Handbook, have specified their method of agent

appointment. Their method of appointment is either one of General Concurrence or Specific Appointment. The two

methods of agent appointment can be described as follows:

General Concurrence: The carrier appoints all agents that appear on the ARC Agency List unless the carrier

notifies both ARC and the agent of a decision not to appoint the agent or agency location.

Specific Appointment: The carrier appoints agents appearing on the ARC Agency List specifically and will do so by

delivering to each appointed agent a written Certificate of Appointment. Under these terms, ticketing using a carrier's

validation code is not permissible unless done under the specific appointment of the validating carrier. Agents seeking a

Certificate of Appointment from a carrier should seek such Certificate directly from the carrier.

232

Section F

Section F: Examples of Breaches by Agent

1. Examples of situations where it appears to ARC that there may be or has been fraudulent conduct on the part of

the Agent include:

1.1. Failure to include in a report all ARC Traffic Documents issued through the close of the Sales Report

Period, even though payment was subsequently made upon demand.

1.2. Issuance of ARC Traffic Documents (including Traffic Documents issued for ARC Pay transactions and

other transactions) against a credit card without the cardholder's authority, or against a stolen or otherwise

fraudulent credit card.

1.3. Failure to account for missing ARC Traffic Documents or for flight, exchange, or service coupons.

1.4. Permitting alteration, omission, or other falsification on coupons of original ARC Traffic Documents or on

any reissue.

1.5. Falsification of reports, Traffic Documents, or other documents.

1.6. Use and misuse of IAR that results in reporting cash refunds against sales made on credit cards.

1.7. Permitting the unlawful or unauthorized access or use of an airline or System Provider computer

reservations system owned, leased or controlled by it in connection with the issuance of ARC Traffic

Documents.

1.8. Engaging in a pattern of potential “bust-out” activity, such as a sudden, sharp fluctuation of sales, refunds,

exchanges, voids, etc.

1.9. Issuing and/or reporting through IAR, duplicate or invalid Credit Memos or other supporting documents,

e.g., vouchers and/or credit certificates.

1.10. In the absence of specific permission of the Carrier, (a) using any credit card which is issued in the name of

the Agent, or in the name of any of the Agent’s owners or personnel, or in the name of any third party, for

the purchase of air transportation for sale or resale to other persons, or (b) including in a Sales Report or

reporting to the Carrier the sale of any air transportation as a credit card transaction where at any time the

Agent bills, invoices, or receives payment in cash from the customer for such air transportation.

1.11. Submitting for refund, exchange or reissuance an ARC traffic document or transaction that has been used

or has already been refunded, exchanged, or reissued.

1.12. Use or misuse of IAR that, for example, prevents the proper reporting of all sales or results in Improperly

Reported Transactions, including improperly reported exchanges or refunds.

1.13. Misuse or manipulation of IAR and ARC Traffic Documents. This may include, for example, issuance,

refund and/or exchange of tickets that are not intended for travel by a bona fide passenger.

1.14. Unless otherwise permitted by the ARA, manipulation or alteration of any transaction that has been

identified as error-free by a System Provider.

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Section G

Section G: Personal Guaranty of Payment and Performance

Section I: Applicability

The provisions of this Section apply whenever the Agent is required by the Agent Reporting Agreement (ARA), to execute a

"Personal Guaranty of Performance of Agent's Agreement" (Guaranty)

Section II: Guarantors

The guarantors on such Guaranty shall include:

A. All individuals having a stock or other beneficial interest of 30 percent or more in the Agent and all officers, directors, or

employees having a stock or other beneficial interest of 10 percent or more in the Agent, if such is a corporation; or

B. Where the Agent is a corporation in which 30 percent or more of the stock or other beneficial interest is owned by another

corporation(s) (hereinafter "parent corporation") then all individuals , in addition to those who may meet the requirements of

paragraph A above, having a stock or other beneficial interest of 30 percent or more in the parent corporation and officers,

directors or employees having a stock or other beneficial interest of 10 percent or more in the parent corporation; or

C. Each general partner and the spouse of each general partner if the Agent is a general or limited partnership; or

D. The spouse of the Agent which is a sole proprietorship; or

E. If the Agent is a limited liability company (LLC), all individuals who are members of the LLC.

Section III: Effectiveness of Guaranty

The originally executed Guaranty is of continuing effect, and its effectiveness, and the guarantors' liability thereunder, survives

termination of the Agent’s Agent Reporting Agreement, except as modified pursuant to Section IV below, and need not be re-

executed upon amendment of the Agent Reporting Agreement, including subsequent revisions and reissues thereof.

Section IV: Modification of Personal Guaranty

A. By mutual consent of ARC and the Agent, guarantors may be added, deleted, or substituted for existing guarantors, if

circumstances change, e.g., change of corporate or partnership structure, or change of spouse occurs after the Guaranty has

been executed.

B. After the Guaranty has been in effect for two years, the Agent may petition the Arbiter for review of the requirement to maintain

such Guaranty.

Section V: Agreement - Personal Guaranty of Payment and Performance of Agent's Agreement

As a condition imposed for continued inclusion of the below listed Agent on the ARC Agency List of the Airlines Reporting

Corporation (ARC), and/or pursuant to the terms of the ARA, the undersigned guarantor(s) hereby jointly and severally promise and

guaranty the unconditional payment by Legal or Trade Name: ______________________________ (Agent), the Home Office of

which has been designated with ARC Number _______________________. For these purposes,

Agent shall mean all Agent Location (s) (as defined in Section 39.19 of the ARA), including without limitation any location which

may be added to the ARC Agency List after the date of execution hereof, of all indebtedness, liabilities and obligations of every

nature and kind arising out of or in connection with the Agent Reporting Agreement as presently constituted and as may be

hereinafter amended, including subsequent revisions and reissuances thereof, except to the extent that such indebtedness,

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Section G

liabilities or obligations are satisfied from the proceeds of the surety bond or letter of credit or Cash Security Deposit (Financial

Instrument) required under said Agent Reporting Agreement and/or are satisfied by the assets of Agent itself.

Any and all disputes regarding the obligations of the undersigned guarantor(s) to ARC shall be resolved by the Travel Agent Arbiter,

an arbitration forum established as an independent entity, in accordance with the rules promulgated and published by the Travel

Agent Arbiter, and the decision shall be final and binding; provided, however, that neither ARC nor any guarantor is precluded from

seeking judicial relief to enforce a decision of the Travel Agent Arbiter, or to compel compliance with this Guaranty prior to the filing

of an answer on a proceeding concerning such requirement before the Travel Agent Arbiter. Subject to the above, the Travel Agent

Arbiter shall have discretion to consolidate in one docket any action concerning ARC and Travel Agent, and ARC and any or all

undersigned guarantor(s).

Any assets which a spouse who executed this Guaranty acquired independently of Agent are excluded from the provisions of this

Guaranty.

Authority and consent are hereby expressly given ARC from time to time, and without any notice to the undersigned guarantor(s), to

give and make such extensions, renewals, settlements, and compromises as it may deem proper with respect to any of the

indebtedness, liabilities and obligations covered by this Guaranty; and the release by ARC of any other Entity, or settlement with

any other Entity, or the revocation or impairment of this Guaranty with respect to one or more of the guarantors, shall not operate to

prejudice the rights of ARC against any or all other guarantors hereunder. This Guaranty shall bind the parties by whom it is

signed, whether the same is signed by one or more guarantors. This Guaranty may consist of several counterparts, all of which,

taken together, shall constitute a single Guaranty.

It is understood that this is a continuing absolute and unconditioned Guaranty, co-extensive with said Agent Reporting

Agreement as presently constituted and as may be hereafter amended, including subsequent revisions and reissuances thereof.

The undersigned guarantor(s) hereby jointly and severally waive notice of acceptance of this Guaranty and of all defaults by

Agent of nonpayment and nonfulfillment of any and all of said indebtedness, liabilities, and obligations.

The obligations hereunder are not subject to any limitation under the United States Bankruptcy Code, 11 U.S.C. sec. 101 et seq.

(“Bankruptcy Code”) in the event that Agent is a debtor in a case under the Bankruptcy Code.

The execution of this Guaranty shall not be construed as to create a present security interest or lien on the assets of the guarantors

hereto.

This Guaranty shall be construed in accordance with and governed by the laws of the Commonwealth of Virginia.

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Section G

Faxed and scanned signatures shall constitute original signatures and shall be treated with the same force and effect as original

signatures.

Signed and sealed by the undersigned on the date set forth below

___________________________________________________ ________________________________________________

(Printed Name of Guarantor) (Residence Address)

________________________________________________ ________________________________________________

(City, State, Zip Code) (Residence Telephone Number)

________________________________________________

(Signature of Guarantor)

This Document Must Be Signed in the Presence of a Notary.

(FOR NOTARY USE ONLY)

County of ___________________________________ State of ___________________________________

On this day of , 20 , _______________________________________

(Print Name of Above Guarantor)

appeared before me and, having been duly sworn by me, signed the Guaranty in my presence.

_______________________________________________

_______________________________________ Notary Public Signature

NOTARY SEAL

My commission expires on ____________________________

A SEPARATE PERSONAL GUARANTY MUST BE EXECUTED BY EACH TYPE OF GUARANTOR IDENTIFIED IN SECTION II ON THE

REVERSE. EACH PERSONAL GUARANTY MUST CONTAIN ALL PAGES.

236

Section H

Section H: Use of ARC Online Services and Tools

1. ARC provides various online services (collectively referred to as “ARC Tools” or “Tools”) Agents use to submit

and review Transactional Data or otherwise conduct business with ARC and the Carriers. Currently, these Tools

include ARC’s: Interactive Agent Reporting (IAR), Memo Manager, and Document Retrieval Service, as well as

the My ARC web portal through which certain ARC Tools are accessed.

2. Agent’s use of ARC Tools is subject to the terms of the ARA and the Terms of Use for each Tool, which are

incorporated by reference.

3. Agent represents that it has computer equipment, software, and Internet connection compatible with accessing

My ARC and ARC Tools, and that such are capable of a sufficiently high level of encryption to meet the system

requirements established by ARC from time to time. The agent must ensure the computer equipment Agent uses

to access ARC’s Tools uses an industry-standard anti-virus software program capable of detecting and removing

computer viruses, as well as software for protection against malware. Agent will further ensure that such

software is updated periodically in accordance with a commercially reasonable schedule.

3.1. ARC will assign to the Agent Log-in Credential(s) that will allow Agent to access My ARC and ARC’s Tools

and will also allow Agent to create additional Log-in credentials.

3.2. Log-in credentials shall serve as the Agent’s authentication, authorization and verification of all

Transactional Data and other data and information transmitted to ARC and/or the Carriers. Agent must

comply with all ARC instructions and rules concerning the log-in credentials that ARC provides and updates

from time to time.

3.3. Agent’s use of Log-in credentials shall have the same force and effect as a handwritten signature, shall

bind the Agent for all purposes, and shall be deemed admissible between the parties to the same extent

and under the same conditions as other business records originated and maintained in documentary form.

Agent agrees not to contest the validity or enforceability of electronic transactions confirmed with the

Agent’s Log-in credentials.

3.4. All Log-in credentials, whether created by Agent or by ARC at the request of the Agent, are confidential and

must be maintained by the Agent as confidential. The Agent will not disclose its log-in credentials to anyone

who is not authorized to act on its behalf. Disclosure of log-in credentials to other persons or Entities may

compromise the security of confidential financial, transactional, passenger, and other data provided to ARC

and/or Carriers.

3.5. Agent assumes liability for use, misuse, or unauthorized use of Agent’s log-in credentials supplied by ARC,

whether created by the Agent or by ARC at the request of the Agent. Agent must indemnify, defend and

hold harmless ARC, its owners, directors, officers, employees, representatives and participating Carriers,

from injury or damage to any Person, property or entity including, but not limited to, the Agent, resulting

from any such use, misuse or unauthorized use of the Agent’s Log-in credentials.

3.6. Agent will immediately notify the ARC Customer Care Center at ARC’s headquarters if the Agent believes

that any one of its login credentials has been lost, stolen, misused, misappropriated, or otherwise

compromised. Notwithstanding the foregoing, notification to ARC will not relieve Agent of its obligations

hereunder.

4. Agent must designate a Document Retrieval Service (DRS) Security Manager who shall perform administrative

functions for the Agent’s users of DRS, including but not limited to, creating and terminating individual DRS user

accounts, DRS administrators, resetting of passwords, etc., according to instructions ARC may provide from time

to time.

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Section H

5. Agent must designate a My ARC Primary Administrator who shall perform administrative functions for the

Agent’s My ARC users including but not limited to creating and terminating individual My ARC user accounts, My

ARC administrators and Tool administrators, and granting and terminating user and administrator access to My

ARC and ARC Tools, resetting of passwords, etc., according to instructions ARC may provide from time to time.

6. Account profiles created in Tools by Agent, its administrators, security managers or Tool users, and the

information contained in the profiles, will not constitute an application for, and/or ARC approval of a change of

Agent’s name, address, status, organizational structure or ownership, etc.

7. ARC’s Tools and online services are provided on an “As Is” and “As Available” case-by-case basis, and are

subject to necessary scheduled downtime for maintenance, unscheduled maintenance, and system outages. The

agent’s access to ARC’s Tools and online services may be interrupted at times for maintenance, system outages

and other circumstances beyond ARC’s Control (e.g., telecommunications outage, etc.), including but not limited

to, those circumstances described in Section 9 below.

8. The availability of ARC’s Tools is subject to interruption and delay due to causes beyond ARC’s reasonable

control, including, without limitation, delays by suppliers or vendors which are outside of ARC’s Control; acts of

God or of a public enemy; acts of the United States or any state or political subdivision; fires, severe weather,

floods, earthquakes, natural disasters, explosions, or other catastrophes; and labor strikes, slowdowns

(collectively, “excusable delay”). ARC will not be liable to Agent for any excusable delay. In no event will

ARC be liable for any indirect, special, punitive or consequential damages, including lost profits, even if

ARC has been advised of the possibility of such damages.

9. ARC reserves the right to assess a fee for any new, modified, or enhanced services related to ARC’s Tools, with

the exception of services covered by the annual fee described in Section M of the IAH, that may be offered to the

Agent in the future, subject to the approval of such fee by ARC’s Board of Directors. By using any new or

modified features when they become available, the Agent agrees to be bound by the rules concerning these

features.

10. The means by which ARC provides access to ARC’s Tools and online services, and the format and other

features of such Tools and online services, may be modified or deleted by ARC at any time upon notice to the

Agent.

11. Upon termination of the Agent’s Agreement or access to the ARC Tools and/or online services, the information

that the Agent would otherwise be able to access electronically or via My ARC, up to the termination date, may

be made available to Agent, upon written request, in the format and media as determined by ARC, in its sole

discretion. ARC reserves the right to assess a fee for such service. Agent acknowledges and agrees that nothing

in this Section will affect the terms, conditions, or validity of the Agent Reporting Agreement.

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Section I

Section I: Examples of Change in Ownership

1. To apply for a change in ownership, submit your request through the ARC Accreditation Tool or as directed in

writing by ARC.

1.1. Examples of a change in ownership status of the Agent that involves a transfer of the ownership of

the Agent or an Agent Location(s) to a new owner(s) or a new entity(ies).

1.2. Agent “DEF, Inc.” is owned by Bob and Mary, 50/50. Bob and Mary each sell 100% of their shares in DEF

to Sue. Sue becomes the 100% owner of DEF, Inc. [Type II]

1.3. Agent “AAA, Inc.” is owned by Bob and Mary 50/50. They each sell 20 percent of their shares to John.

Resulting ownership is John (40) Bob (30) and Mary (30). [ Type II]

1.4. Agent “ABC, Inc.” is owned 100% by Bob. “XYZ Inc.” owned 100% by Mary, acquires “ABC Inc.’s” travel

agency business. Upon approval by ARC, “XYZ, Inc.” is the new Agent. [Type V] (See, Section 16.1 of the

ARA for description of acquisition)

1.5. Agent FFF, Inc. transfers one its branch Locations to ARC approved Agent GGG, Inc. FFF, Inc.’s branch

becomes a Location of GGG, Inc. [Type IV]

2. Examples of a change in ownership status of the Agent that does not involve a transfer of ownership to a

new owner(s) or a new entity(ies).

2.1. Agent “DEF, Inc.” is owned by Bob and Mary 50/50. Mary transfers 100% of her shares to Bob. Bob owns

100% of DEF, Inc. DEF, Inc. remains the agent. (No new owners) [Type 1]

2.2. Sole proprietor John sets up a corporation called John, Inc. John is the 100% shareholder of John, Inc.

John Inc. assumes liability for all transactions issued by Sole proprietor John. (Structural change – no new

owners) [Type III]

3. Change in Ownership Due to the Death of a Sole Proprietor or Partner

3.1 In the event of the death of a sole proprietor or partner, contact ARC’s Customer Care Center.

3.1.1. At the request of the Entity entitled to represent the deceased's estate and/or the request of the

remaining partner(s), ARC may enter into a temporary Agreement with the Entity acting on behalf of

the estate provided that the Entity submits a proper Financial Instrument in the name of the estate and

continues to operate at the Location(s) covered by this Agreement.

3.1.2. The temporary agreement will be in the same form and have the same effect as this Agreement, and

ARC may terminate this temporary Agreement at any time ARC determines that the Entity acting on

behalf of the estate does not meet requirements of the ARA, is not in compliance with the ARA or

cannot be relied upon to comply with the terms of the ARA. Upon termination of the temporary

agreement, ARC will take action as directed in Subsections 6.7 and 6.8 in the ARA.

3.1.3. If the Entity entitled to represent the estate, or with whom the temporary Agreement is executed,

proposes to transfer the temporary Agreement to an heir, legatee, or another Entity, the proposed

transfer will be deemed a change of ownership and the procedures in this Agreement, and the

application agreement and instructions will apply.

3.1.4. If ARC determines that the Entity acting on behalf of the estate does not meet requirements of the

ARA, is not in compliance with the ARA or cannot be relied upon to comply with the terms of the ARA,

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Section I

ARC reserves the right to notify Carriers and withdraw all ARC Traffic Documents (paper format)

supplied to Agent and notify System Providers to prohibit further issuance of ARC Traffic Documents.

240

Section J

Section J: Instructions for Temporary Closure

1. In the event of a situation beyond Agent's control, such as fire, flood, or illness, Agent may request to temporarily

close its Location(s) by contacting ARC’s Customer Care Center.

2. During the period of temporary closure, Agent is required to maintain its Financial Instrument. ARC reserves the

right to notify Carriers, notify System Providers to inhibit issuance of ARC Traffic Documents, and withdraw ARC

Traffic Documents from the Location(s).

3. Please note: In the event of a regional disaster such as a hurricane, earthquake, etc., affecting a large number of

agents, ARC will proactively ensure that all Agent Location(s) in the affected areas are excluded from

compensatory fees; however; if your Location(s) continue to remain closed beyond the timeframe communicated

by ARC for a reporting extension, please contact ARC’s Customer Care Center for further assistance.

241

Section K

Section K: Reports and Settlements

1. Sales Reports

1.1. Agent must Submit its Sales Report(s) in compliance with the instructions provided by ARC in the Industry

Agents’ Handbook and the Agent Reporting Agreement.

1.2. Agent’s Sales Reports must account for and include all ARC Traffic Documents issued and validated during

the Sales Report Period and confirm the accuracy of data included in the Sales Report, including

transactions for non-air transportation.

1.3. If Agent has sold no air transportation or ancillary services during the Sales Report Period, ARC will

automatically submit, on the Agent’s behalf, any or all “No Sales” Reports (i.e., Agent’s IAR sales reports

that include no transactions of any kind as of the Submission Deadline) if Agent has not already Submitted

the report.

1.4. Agent acknowledges and agrees that it remains financially liable and responsible for all transactions issued

by the Agent during each Sales Report Period but not included in the Agent’s Sales Report.

1.5. With each Sales Report Agent will authorize a settlement amount reflecting the maximum amount to be

drawn by ARC from Agent’s designated account.

1.6. Agent must Submit the Sales Report to ARC no later than the Submission Deadline, which is 11:59 p.m. ET

of the Tuesday following the end of the Sales Report Period.

1.7. Only those Sales Reports received by the Submission Deadline will be considered “timely received.” If the

Submission Deadline has passed, all outstanding Sales Reports must be Submitted immediately.

1.8. Agent must make Transactional Data available to the Carrier(s) to which such data pertains.

1.9. All Transactional Data may be reviewed by ARC at any time during or after the Sales Report Period.

1.10. Upon Agent’s Submission (or resubmission) of the Sales Report, ARC will generate a confirmation number

for the report, and transmit this number to the Location from which the report was submitted.

1.11. ARC will, based upon the Sales Report submitted by the Agent, determine the amount owed for the sales

period, and will draft the Agent’s designated bank account for such amount. The draft will not exceed the

amount authorized by the Agent or be presented for payment earlier than the fifth calendar day after the

close of the Sales Report Period.

1.12. ARC will make available a weekly summary showing all transactions and the amount of the draft, no later

than the fifth calendar day after the close of the Sales Report Period. Settlement of amounts owing will be

made in the authorized currency.

2. In the event ARC does not receive Agent’s Sales Report(s) by the Submission Deadline, ARC will notify

Agent and the following, as relevant, will apply.

2.1. Where Agent Has Evidence of Timely Submission of Weekly Sales Report: If you have evidence that you

submitted the Sales Report on time, please contact the Customer Care Center. In this situation, ARC will

not assess a compensatory fee.

2.2. Where a Malfunction at ARC Prevents Processing of Sales Report: If a malfunction or emergency at ARC

renders ARC unable to process or receive the Sales Report, ARC will promptly notify Agent with further

instructions. In this situation, ARC will not assess a compensatory fee.

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Section K

2.3. Where Sales Report Recalled by Agent: Agent may, at any time before the Submission Deadline, recall a

Sales Report which it has already submitted, in order to enhance or correct data. However, Agent may not

recall a submitted Sales Report after the Submission Deadline for that Sales Report, and any Sales Report

recalled prior to the Submission Deadline must be resubmitted by the Submission Deadline. If a recalled

Sales Report is not resubmitted so that it is received at ARC by the Submission Deadline, the Agent must

reauthorize and resubmit the Sales Report to ARC via IAR by the next business day after notification by

ARC.

3. Consequences of Failure to Pay for Dishonored draft(s), Unreported Sales and/or Improperly Reported

Transactions, and Failure to Timely Submit Sales Reports

3.1. If any of the actions in of Subsections 33.2, 33.3, or 33.4 of the ARA occurs, ARC will:

3.1.1. Withdraw from the Agent, and all agents and locations under common Control with the Agent, all ARC

Traffic Documents (paper format)

3.1.2. Notify Carriers

3.1.3. Notify System Providers to inhibit the issuance of ARC Traffic Documents (paper and electronic

format) by such Agent and all agents and locations under Common Control with the Agent.

3.2. Once all amounts Agent owes to Carriers and ARC have been fully paid (including, but not limited to,

payment of all drafts drawn by ARC and dishonored by the Agent’s bank), and all reports have been

submitted, unless there is an outstanding notice of cancellation of the Financial Instrument (or Traffic

Documents have been removed or issuance prohibited pursuant to another provision of the Agreement),

ARC will resupply the Agent with ARC Traffic Documents in accordance with Section 23 of the ARA. ARC

will also notify the System Providers that the issuance of ARC Traffic Documents is authorized, unless the

Carrier has also taken action to terminate the Agent’s appointment pursuant to Section 11.5 of the ARA.

4. If Agent Unable to Satisfy Debt

4.1. If the Agent does not submit the required Sales Report(s) and provide full payment, or fails to make full

payment of all amounts owed to the Carrier or ARC (including, but not limited to, payment of all drafts

drawn by ARC and dishonored by the agent's bank), on or before the 31st calendar day after the date of

ARC's written notice of a default, this Agent’s ARC Agreement will terminate automatically and without

further notice.

4.2. The full amount to be paid within the 31-day period described above or any extension described in Section

4.3 must include, but not be limited to, all amounts owed for dishonored drafts, Unreported Sales and

Improperly Reported Transactions, compensatory fees and missing reports, regardless of whether such

amounts and/or reports have been specifically identified in the written notice.

4.3. ARC may extend the time for Agent to make full payment and avoid termination of the Agent’s ARA, if:

4.3.1. Agent has surrendered all ARC Traffic Documents (paper format) and has ceased to issue ARC

Traffic Documents in electronic format and, on or before such 31st calendar day.

4.3.2. Agent has provided all missing Sales Reports.

4.3.3. Agent has made a partial payment in an amount deemed appropriate by ARC.

4.4. In determining whether or not to extend the time for full payment, ARC will consider the following factors,

among others: the cause of the dishonor, Unreported Sales or Improperly Reported Transactions, or

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Section K

missing report; the payment schedule proposed; the current financial condition of the Agent; and any

proposed remedial action.

4.5. An extension of time on the terms provided in the preceding paragraphs will be available to all Agents.

4.6. In conjunction with the extension of time provided in the foregoing paragraphs, the Agent may obtain

authority from one or more of the Carriers involved to convert the Agent's cash indebtedness to each such

Carrier into individually sponsored credit plans, thereby transferring the indebtedness from ARC to such

Carrier. Upon receipt of written notice from the Carrier concerned, ARC will modify or withdraw the notice of

termination, as appropriate.

4.7. Upon the Agent's compliance with the foregoing paragraphs, ARC shall resupply the Agent with Traffic

Documents in accordance with Section 23 of the ARA. In addition, ARC will notify all System Providers that

the Agent may issue ARC Traffic Documents, and the Carriers may, in their individual discretion, notify the

System Providers, if action is to be taken pursuant to Section 11.5 of the ARA.

4.8. Upon termination of the Agreement pursuant to this Section, ARC will take action as directed in Subsection

6.7 and 6.8 of the ARA. In addition to any amounts due and owing by the Agent under the ARA, Agent

shall also be liable to ARC for any and all attorney’s fees, and also for any additional costs actually incurred

by ARC for the collection of such sums owing by the Agent. Upon termination of the Agreement under this

Section, ARC may, in its sole and absolute discretion and without any other separate basis, terminate all

agents in common Control with the Agent.

5. ARC will require each Agent to which notice of default under Subsections 33.2, 33.3, and 33.4 has been sent to

have executed on its behalf and filed with ARC the "Personal Guaranty of Payment and Performance" as set

forth in Section G of the IAH if the Agent’s financial or reporting irregularities under Subsections 33.2, 33.3, and

33.4 of the ARA create a danger of substantial loss to ARC and/or the Carriers. Such execution and filing will be

a condition precedent to an Agent's right to use ARC Traffic Documents.

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Section M

Section L: Variable Remittance

1. The following Variable Remittance option is available as an alternative to the cash sale standard remittance

schedule. This option is intended to provide flexibility for carriers and agents who may choose to have cash sales

processed in an alternate manner.

1.1. Direct Form of Payment (DP)

2. Section 27 of the Agent Reporting Agreement provides that if a proposal is made by an Agent for the use of

payment terms other than the standard remittance schedule, the Carrier will consider the proposal in good faith;

however, the carrier's refusal to enter into such an arrangement shall not, in and of itself, constitute evidence of

bad faith.

3. Variable Remittance Option

3.1. Direct Form of Payment (DP): The Direct Form of Payment (DP) option allows the agent to submit a DP

sale in the weekly report without ARC collecting the funds for the carrier. Settlement is strictly between the

carrier and the agent, although ARC does settle the commission amounts.

4. Control Procedures

4.1. ARC has incorporated control procedures to provide quality assurance for the Variable Remittance option.

An online system ensures that these transactions are processed in accordance with the instructions

submitted by the carrier to ARC. This is accomplished through a Carrier Agent Payment (CAP) file.

4.2. For each carrier/agent arrangement the CAP file includes the following information:

4.2.1. ARC Code Number

4.2.2. Carrier Identification

4.2.3. Account number (determined by the carrier)

4.2.4. Payment plan

4.2.5. Inception and Termination dates

5. Once a carrier notifies ARC that a Variable Remittance option will be established with an agent, ARC will include

this information in the CAP file database. When an agent submits a weekly report containing a transaction with a

Variable Remittance account number, this number is then verified by accessing the CAP file database. ARC will

use the CAP file database to verify every Variable Remittance transaction.

6. ARC Processing

ARC will settle the commission amount in the week during which the transaction is processed. Therefore, since

the agent has already received the commission, the amount owed to the carrier will be the Total Sale amount.

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Section M

Section M: Administrative and Compensatory Fees

1. Agents are required to pay an administrative fee to ARC for each Agent’s Locations in order

to defray a portion of the costs associated with operating the ARC Settlement Plan (ASP)

and half of the costs associated with operating the Travel Agent Arbiter Program, Inc. The

administrative fee has two parts: an annual fixed amount for each Location and a fee for

transactions processed through the ASP for each Location.

2. The transaction fee is determined by multiplying the fee amount times the number of

transactions processed at each of Agent’s authorized Locations during a defined 13-week

period (referred to as “quarterly”). The transaction types include sales (auditor’s coupon),

refunds, Credit Memos, Debit Memos, exchanges (primary/companion/conjunction), recall

commission statements, Agency Automated Deductions (AADs), Electronic Miscellaneous

Document (EMD), and other transactions that may be approved by the ARC Board of

Directors.

3. The annual fixed amount and the fee amount charged per transaction are determined by the

ARC Board of Directors. ARC will notify each Agent of the annual fixed amount and the per

transaction fee amount for the following year before the end of the current calendar year.

4. Agent authorizes ARC to collect the administrative fee by issuing a draft against the Agent’s

designated bank account.

5. Annual Fixed Amount

5.1. The annual fixed amount will be collected by ARC, which will draft the designated

account of each Location in January of the current year, or on such other schedule as

the Board of Directors adopts.

5.2. For a newly accredited Agent added to the ARC Agency List after the date the annual

fixed fee is normally paid, ARC will draft the designated account of the Agent for the

pro-rated annual fixed amount. For a Location added to the ARC Agency List after the

date the annual fixed fee is normally paid, the annual fixed amount will be included with

the application fee.

6. Transaction Fee

6.1. The transaction fee will be assessed and collected on a quarterly basis or an alternate

assessment period(s) as be approved by the ARC Board of Directors. ARC will draft

the designated account of each Location. For Agents undergoing ownership changes to

new owners or entities, ARC will assess and collect a transaction fee from the

transferring owner for transactions processed at the Location up to the effective date of

the transfer of ownership. As of the effective date of the ownership transfer, ARC will

assess and collect the transaction fee from the new owner of the Location.

7. Compensatory Fees

7.1. The compensatory fee will be calculated and charged based on a formula approved by

the ARC Board of Directors. ARC will notify the Agent of the amount and the date on

which payment will be due.

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7.2. Agent acknowledges and agrees that ARC will assess a compensatory fee for each

dishonored draft for payment of Sales Reports to defray processing costs associated

with the handling of dishonored draft, interest expense, and special service costs

described in Section 36.12 of the ARA.

7.3. Agent acknowledges and agrees that ARC will assess a compensatory fee for

Unreported Sales and Improperly Reported Transactions and failure to timely file Sales

Reports to defray costs associated with the processing and handling of the resolution of

Unreported Sales and Improperly Reported Transactions, costs attributable to Agent’s

failure to timely Submit a Sales Report, and special service costs described in Section

36.12 of the ARA.

7.4. ARC will not assess more than one compensatory fee to Agent per any given late or

missing Sales Report.

7.5. Agent authorizes ARC to collect the charge by issuing a draft against the Agent’s

designated bank account. Alternatively, the Agent must make payment directly to ARC

if required by ARC notice.

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Section N: Associate Branch Supplementary Agreement

Agent’s Guaranty of Payment and Performance of Associate Branch Obligations

Additional Requirements for Associate Branch

In addition to the requirements in the ARA, Agent seeking approval for an Associate Branch must:

1. Submit an application for approval of an Associate Branch in the form required by ARC

2. Provide and maintain a Financial Instrument in the form and amount required by ARC, as described

in Section D of the IAH.

2.1. At no time will the Agent’s Financial Instrument be less than $70,000 or more than $150,000,

unless Agent becomes subject to the requirements of Section 34 of the ARA.

3. Execute the Corporate Guaranty included in this Section.

Agent and the owners of each Associate Branch must execute the Associate Branch Agreement in this

Section.

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ASSOCIATE BRANCH SUPPLEMENTARY AGREEMENT

1. This Supplementary Agreement (Supplement) covers the terms and conditions for

___________________________ (Agent), ARC number _____________________, to operate an Associate

Branch, the ownership of which is different from the ownership of Agent. The parties identified below agree as

follows:

2. This Supplement will become effective on the date of ARC’s written approval of Agent’s Application for

Associate Branch, or the last date signed below, whichever is later. This Supplement will remain in effect as

long as the Agent’s ARA is in effect, or until Associate Branch is terminated and/or removed from the ARC

List, whichever occurs first.

3. The ownership of Agent’s Associate Branch_________________ [name of Associate Branch entity] at

______________, is authorized by ARC to be different from the ownership of the Agent subject to the

following conditions:

3.1. The Agent, or the owning Entity of Agent must at all times hold some ownership interest in the Associate

Branch.

3.2. No interest in the ownership of Associate Branch may be transferred or assigned without the prior written

consent of ARC. If a transfer is made without ARC’s prior written consent, this Supplement will

automatically be terminated, and Associate Branch will be removed from the ARC Agency List and ARC

shall take action as directed in Subsections 6.7 and 6.8 of the ARA.

3.3. If a transfer or assignment of the ownership of Agent is made without ARC’s prior written consent, this

Supplement and Agent’s ARA may be terminated and ARC may take action as directed in Subsections 6.7

and 6.8 of the ARA.

3.4. The owning Entity of Agent unconditionally guarantees all obligations of the Associate Branch to ARC in

the required corporate guaranty in this Section. Execution of the guaranty is a condition precedent to the

effectiveness of this Supplement and approval of the Associate Branch application.

3.5. This agreement shall in no way affect any Carrier’s individual rights with regard to its appointment of

Agent, Associate Branch, or any other Location affiliated with Agent or Associate Branch. Except as

noted herein, all other terms of the ARA shall remain in full force and effect as if unmodified.

3.6. Associate Branch hereby agrees to be bound by the terms and conditions of the ARA.

3.7. Associate Branch acknowledges and agrees that Agent is authorized to access, obtain and view all

applications, requests and other forms and documents that may be submitted by Associate Branch to ARC,

including but not limited to Transactional Data issued by and reported in the Sales Report for, or by the

Associate Branch, in the same manner through which Agent may access, obtain and view such information

for any of Agent’s other Locations.

4. Agent and Associate Branch acknowledge and agree that ARC reserves the right to amend or modify the terms

of this Supplement, upon reasonable notice to Agent and Associate Branch.

This Supplement may be executed in multiple counterparts, each of which taken together shall constitute

one and the same agreement. Further, signatures received via fax or via scanned document attached in an

email shall constitute original signatures and shall be treated with the same force and effect as original

signatures.

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Accepted and agreed by the parties identified below (Agent, Associate Branch entity and ARC):

AGENT AIRLINES REPORTING CORPORATION

Legal Name__________________________ (on behalf of itself and on behalf of each Carrier signatory

to the ARC Carrier Services Agreement)

Signature____________________________ Signature ______________________________

(Authorized owner/officer) (Authorized officer)

Printed Name_________________________

Title ________________________________ Title ______________________________

____________________________________ ______________________________

(Date) (Date)

ASSOCIATE BRANCH entity

Legal Name__________________________

Signature____________________________

(Authorized owner/officer)

Printed Name_________________________

Title ________________________________

____________________________________

(Date)

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Associate Branch

Guaranty of Payment and Performance

Section I: Applicability

The provisions of this guaranty apply whenever Guarantor (as defined below) is required to execute a

"Guaranty of Performance of Agent's Agreement" (Guaranty) relating to the actions of _______________,

[Legal Name of Associate Branch], accredited by ARC as an Associate Branch pursuant to Section 39.19.4

of the Agent Reporting Agreement (ARA) and Section N of the IAH, which is incorporated by reference in

the ARA (“Associate Branch”).

Section II: Guarantor

___________________________________________________________________________

(“Guarantor),

[Print Legal Name of the owning Entity of the Agent]

is the owning Entity of ___________________________________________________________ (“Agent”)

[Print Legal Name of Agent]

designated with ARC Number_______________________, the Agent under the ARA between Agent and

Airlines Reporting Corporation, a corporation organized under the laws of Delaware (“ARC”).

The Agreement requires that Guarantor guarantee the payment and performance obligations of Associate

Branch identified in Section I of this Guaranty under the terms of the ARA. Accordingly, as a condition

imposed for continued inclusion of Guarantor on the ARC Agency List and in consideration of the benefit to

Guarantor of the effectiveness of the ARA, Guarantor agrees as follows:

Section III: Guaranty

(i) Except as expressly set forth herein Guarantor hereby absolutely, irrevocably and unconditionally

agrees to and hereby does guarantee to ARC the full, prompt and complete performance and

payment by Associate Branch of all of its obligations under the ARA (all such obligations, collectively,

the “Obligations”). Subject to the terms hereof, Guarantor agrees that this Guaranty is a guaranty of

performance and payment and NOT of collection and that the liability of Guarantor is primary and

unconditional. Accordingly, Guarantor agrees to pay the Obligations to ARC upon receipt of a written

demand therefor, without any withholding, deduction, counterclaim (unless a compulsory

counterclaim) or set-off for any reason or on any account whatsoever, subject to the terms hereof

and provided that ARC shall not demand any of the Obligations until there has been a default by

Associate Branch on such Obligations and notice of such default has been received by Guarantor

and any applicable time and grace periods (as set forth in paragraph (v) of this Section III) have

expired. Except for the notice and time and grace period requirements set forth in the preceding

sentence, this guaranty is in no way conditional upon any requirement that ARC first attempt to

collect any of the Obligations from Associate Branch or resort to any security or other means of

obtaining payment of the Obligations.

(ii) Guarantor hereby waives each and every defense that under principles of guarantee, suretyship or

other similar law would otherwise operate to impair, delay or diminish Guarantor’s obligations

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hereunder; provided, however, that the foregoing waiver shall not in any way waive or prejudice any

right or defense otherwise assertable in respect of any claimed Obligation.

(iii) No delay on the part of ARC in exercising any of its options, powers or rights shall constitute a waiver

thereof. Upon making any payment or performance with respect to any Obligations hereunder,

Guarantor shall be subrogated to the right of ARC against Associate Branch with respect to such

payment; provided that Guarantor shall not enforce any payment right by way of subrogation until the

underlying Obligation has been paid in full.

(iv) Guarantor’s obligations hereunder shall remain in full force and effect until all of the Obligations have

been completely performed and paid in full.

(v) Guarantor hereby waives acceptance hereof, presentment, demand, protest, and any notice not

provided for herein, as well as any requirement that at any time any action be taken by any

corporation or person against Associate Branch or any other corporation or person, except that no

payment shall be sought from Guarantor under this Guaranty unless a notice of default has been

served to Guarantor providing for a minimum cure period of 30 calendar days to remedy such default

and indicating ARC’s intention to claim under this Guaranty in the absence of remedy within such

cure period.

(vi) Guarantor represents, warrants and covenants to ARC that this Guaranty (i) has been duly

authorized, executed and delivered by Guarantor, (ii) constitutes a legal, valid and binding obligation

of Guarantor enforceable in accordance with its terms, except as the enforceability may be limited by

bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally

and by equitable principles relating to the availability of equitable remedies, (iii) does not and will not

violate or conflict with any of Guarantor’s organizational documents, and will not violate or conflict

with any material agreement by which it is bound, or any law to which Guarantor is subject, nor is any

consent or approval required that has not been received or that will not be obtained in connection

with the execution, delivery or performance, validity or enforceability of this guaranty.

(vii) Any and all disputes regarding the obligations of the Guarantor to ARC shall be resolved by the

Travel Agent Arbiter, an arbitration forum established as an independent entity, in accordance with

the rules promulgated and published by the Travel Agent Arbiter, and the decision shall be final and

binding; provided, however, that neither ARC nor Guarantor is precluded from seeking judicial relief

to enforce a decision of the Travel Agent Arbiter, or to compel compliance with this Guaranty prior to

the filing of an answer in a proceeding concerning such requirement before the Travel Agent Arbiter.

(viii) This Guaranty shall be construed and interpreted according to the internal laws of the

Commonwealth of Virginia, excluding any choice of law rules that may direct the application of the

laws of another jurisdiction. Any suit, action, or proceeding seeking to enforce any provision of, or

based on any matter arising out of or in connection with, this Guaranty may only be brought in the

United States District Court for the Eastern District of Virginia, Alexandria Division (or, if jurisdiction is

there lacking, in a state court of cognizant jurisdiction in the County of Arlington, Commonwealth of

Virginia). Guarantor consents and submits to the jurisdiction of such courts (and of the appropriate

appellate court therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest

extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of

any such suit, action or proceeding in any such court or that any such suit, actions or proceeding

which is brought in any such court has been brought in an inconvenient forum. Process in any such

suit, action or proceeding may be served on Guarantor anywhere in the world, whether within or

without the jurisdiction of any such court.

Section IV Effectiveness of Guaranty

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This Guaranty is of continuing effect, and its effectiveness, and the Guarantor’s liability hereunder, survives

termination of the ARA, except as modified pursuant to Section V below, and need not be re-executed upon

amendment of the ARA, including subsequent revisions and reissues thereof.

Section V: Modification of Guaranty

This guaranty may not be modified or terminated orally.

Authority and consent are hereby expressly given ARC from time to time, and without any notice to

Guarantor, to give and make such extensions, renewals, settlements, and compromises as it may deem

proper with respect to any of the indebtedness, liabilities and obligations covered by this guaranty; and the

release by ARC of any other Entity, or settlement with any other Entity, or the revocation or impairment of

this guaranty with respect to Guarantor, shall not operate to prejudice the rights of ARC against the

Guarantor.

It is understood that this is a continuing absolute and unconditioned guaranty, co-extensive with the ARA

as presently constituted and as may be hereafter amended, including subsequent revisions and

reissuances thereof.

[The next page is the signature page.]

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Faxed and scanned signatures shall constitute original signatures and shall be treated with the same force

and effect as original signatures.

This Document Must Be Signed in the Presence of a Notary.

________________________________________________

(Printed Name of Guarantor)

_______________________________________________

(Address)

________________________________________________

(City, State, Zip Code)

__________________________________

(Telephone Number)

__________________________________

(Signature of Guarantor)

(FOR NOTARY USE ONLY)

County of ___________________________________ State of ___________________________________

On this day of , 20 , _______________________________________

(Print Name of Above Guarantor)

appeared before me and, having been duly sworn by me, signed the Guaranty in my presence.

_______________________________________________

_______________________________________ Notary Public Signature

NOTARY SEAL

My commission expires on ____________________________

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Section O: Additional Office Types

1. Satellite Ticket Printer Locations

Effective 03/15/2010, ARC stopped accrediting new STP locations.

A Satellite Ticket Printer (STP) is a location whose sole ARC travel-related function is the delivery

of ARC Traffic Documents and other related Traffic Documents to customers of an ARC-listed

agent by means of a ticket printing device. The STP is an attended printer not intended to service

the general public and is located in a private area within a business-type concern. The electronic

transmission of all traffic documents will be controlled by a host authorized agency location, and

the delivery will occur at the STP).

The STP location is solely a ticket delivery location. Other travel-related, retail functions, such

as, but not limited to, live, or in-person travel promotion, reservations, counseling and sales,

accepting payment or providing refunds for tickets, cannot be performed at this location.

The Agent assumes full and absolute liability for the possession, use, and issuance of ARC Traffic

Documents at the STP location, and for any and all damage, expense, or loss (including

attorneys’ fees) experienced by ARC, the participating Carriers, their officers, representatives, or

employees on account of the loss, misapplication, misdirection, theft, or forgery of ARC Traffic

Documents at the STP location and ARC documents in transit to and from the STP location.

2. Centralized Service Locations (Independent and Branch)

Effective July 1, 2013, ARC will no longer be accrediting new CSL.

A centralized service location (“CSL”) is an authorized independent or branch office location

whose primary purpose is to allow Agent to directly provide, or to use another ARC-accredited

travel agent to provide, travel services to a specified corporate account or web site account at an

approved centralized location. The CSL will not serve the general public and the office or space

where the CSL is located must not be open and accessible to the general public and it must not

be identified as a retail travel agency.

The Agent assumes full and absolute liability for the possession, use, and issuance of ARC Traffic

Documents at the CSL, and for any and all damage, expense, or loss (including attorneys’ fees)

experienced by ARC, the participating Carriers, their officers, representatives, or employees on

account of the loss, misapplication, misdirection, theft, or forgery of ARC Traffic Documents at the

CSL and ARC documents in transit to and from the CSL.

3. Ticketing Fulfillment Locations

A ticketing fulfillment location (“TFL”) is a branch office location whose purpose is to serve as a

centralized ticket printing office for the Agent. The TFL is to function as a separate, non-sales

location. No sales activity, such as, but not limited to, travel promotion, counseling and

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reservations, will occur at this location.

1. The ownership of the TFL location may not be transferred independently of the transfer of

the HOL ownership.

2. The same TFL location may operate as a TFL location for multiple ARC entities provided

each entity has applied and received approval for the TFL location to operate as its TFL

branch office. The TFL location will receive a separate ARC Number for each ARC entity it

represents.

3. ARC will deliver to Agent, or Agent designated location, Traffic Documents intended for use

at the TFL location. Agent may order and maintain a supply of ARC Traffic Documents at the

TFL according to the requirements in Section B of the IAH.

4. The Agent will appoint an attendant at the TFL location that is familiar with all facets of

operating the TFL, including the security and accountability of the ARC Traffic Documents.

The attendant is the person responsible for maintaining the security and integrity of the ARC

Traffic Documents at the TFL location and will be the primary contact for ARC at the TFL

location. One individual may serve as the appointed attendant for multiple ARC entities.

5. The Agent must notify ARC, in writing, of the removal or replacement of Agent’s attendant(s)

and shall provide the name of each new attendant and such other information ARC may

reasonably require regarding the attendant(s).

6. The ARC Traffic Documents at the TFL will only be issued as passenger and flight coupons

and the transaction shall be included in the IAR Sales Report of an accredited non-TFL of

the Agent.

7. The TFL location must comply with all rules or ARC Traffic Documents detailed in the Agent

Reporting Agreement, including the security rules in Section B of the IAH.

8. The Agent, regardless of any security measures taken, assumes full and absolute liability,

including attorneys’ fees, for any and all damage, expense or loss experienced by any

Carrier, its officers, agents or employees for the loss, misapplication, misdirection, theft or

forgery of ARC Traffic Documents assigned to the TFL’s ARC Number. Notwithstanding the

Agent’s absolute liability for documents assigned to the TFL location, Agent must ensure

that the TFL meets all security requirements, including Section B of the IAH.