AFTA Insolvency Chargeback Scheme

August 2017 Webinar

AICS Webinar – 2017

August 2017 Webinar - AICS & Credit Card Surcharging

What is AICS ?

What is being covered?

TravelPay

If you choose not to apply for AICS, how do I set my new surcharging fees

Introduction & workshop

overview

Consumer pays using a credit card and the travel agent completes four different transactions to

suppliers

Consumer invokes a chargeback because

supplier did not deliver on the

contracted service due to insolvency

Agent becomes a creditor to the insolvent

supplier.

The Risk:Supplier Collapse

Consumer invokes a chargeback because

supplier did not deliver on the

contracted service due to insolvency

AICS member claims loss on the Scheme

The Solution:AICS

Consumer pays using a credit card and the travel agent completes four different transactions to

suppliers

Some past and recent supplier collapses

What is AICS?

End supplier Insolvency protection

Protecting your business against chargeback from a supplier insolvency

What is AICS?

Better Merchant Services

Payment innovation for travel agents

What is AICS?

ATAS Accredited

Only ATAS travel agents are allowed to join

What is AICS?

Compliant with RBA surcharging regulations

Can be included in your payment surcharge

What is AICS?

Supplier monitoring

Providing insights on the financial health of your suppliers

AICS Contribution rate

There will not be an up front fee to join AICS.

Established what a Probable Maximum Loss event would look like

2017 Contribution Rate is 0.25%

What is the legal structure of AICS?

What is a Mutual?

Why a Mutual?

Some established mutuals include:

What is AICS?

Supplier insolvency

chargeback protection

Compliant with RBA

surcharging regulation

Supplier monitoring and insights

ATAS minimum

requirement for entry

Competitive merchant

services for members

AICS Partners

100% owned by Zenith Payments, a private Australian

company with HQ and service centre in Sydney

Turnover more than $1 billion in Australia

Provide a simple solution for AICS across 4 models

• Merchant webpay

• Public webpay

• Terminals

• Layby

All are PCI compliant and provide mechanisms and APIs

for integration, processing and reporting

Who is TravelPay?

No down time for set-up

Already provide payment solutions to more than 800

travel agents in Australia

Established payment aggregator and innovator across

various industries including travel

BDMs with travel industry experience in every state

1. Merchant WebPay

Take online payments in your office

or by phone Any member of staff can login to process a

payment

Automatically calculates and applies correct MSF

Replaces the need for a physical terminal (other

than for eftpos)

Features

• Print/email confirmation to customer

• Individual staff logins for audit logging

• Payment history

• Agent-branded

• Device-optimised for PC, tablet, mobile

• No cost to you

Funds to you in 24 business hours

2. Public WebPay

Customers process own

payments online Customer is directed

to the portal by a

payment link on your

website, quotes,

itineraries, invoices or

emails

Saves you time

Statistically, customers

prefer to pay online

Avoids customer’s

concerns about credit

card number security

Features Auto calculation of MSF

Print/email confirmation

Confirmation email to

you

Agent-branded

Payment history

Device-optimised for

PC, tablet, mobile

Funds to you in 24

business hours

No cost to you

3. Terminals

Card present, in-office payments (required for eftpos i.e. only when there is no Visa/Mastercard/Amex symbol on the card)

Multiple terminals per office if required

Features Correct MSF fee auto calculated and added

Print confirmation to customer

Processing fee detailed on printed receipt

Tap and go for <$100 transactions

Funds to you in 24 business hours

Customers can pay over 2, 3, 4, 5, 6 or 10 months

Agent benefits Receive full travel amount upfront

Allows you to upsell and get commitment

immediately

No cost to you

Earn commission

Features Available on all travel products and services

Easy one form application

Email payment confirmations and alerts to

customer and you

Approval in 4 hours

Funds to you within 3 business days

4. Layby

Service

BDMS In every state with travel industry background

>100 years’ experience in travel

Assist with on-boarding and training

Answer queries, provide advanced support

BRING COFFEE

Service centre in Balmain in Sydney All are our employees – no outsourcing

We have customer service operatives who are

dedicated to servicing you

We understand

travel and

understand you!

Self-service online support Information

Forms

Marketing collateral

Transaction history reports

Funds reconciliation reports

Credit card cost of acceptance statements

FAQs

Every agent

has access

to an Agent

Portal

travelpay.com.au/aics

Renew your ATAS Accreditation

Pay your AFTA and ATAS participation fee

Read and understood the AICS constitution

Read the how to apply factsheet

Complete the AICS application

Payment Partner provides you an offer of services

Accept the offer that best suits your business

Commencement AICS coverage

Establishing your payment surcharge?

If you’re not joining AICS

5 permissible costs that can be included in your surcharge

Merchant fees

Terminal rental and servicing

Gateway services

Annual

Cost of Acceptance Statement

Fraud prevention services

The cost of insurance for Forward Delivery Risk

(Member of AICS)

External provider

How do I set my permitted surcharge rate

MSFFraud

prevention

FDR insurance

Surcharge rate

1.3 0.25 0.25 1.8%

MasterCard Credit Example

Simple Formula

1.1 0.25 0.25 1.6%

Visa Credit Example

Questions on Surcharging?

Where can I get more information?

AFTA website - http://www.afta.com.au/afta/afta-at-work/credit-card-surcharging

The ACCC -https://www.accc.gov.au/consumers/prices-surcharges-receipts/credit-debit-prepaid-card-surcharges

Thank you

For more information on future AFTA webinars, please visit

www.afta.com.au

Thank you for attending our webinar, for any further

information please contact me on the below details.

Dean LongNational Manager –Strategy and Policy

Twitter: @Dean_Long13

Email: AICS@afta.com.au

P: 02 9287 9900