Why Your Payment Agreement Matters: Some Legal and Practical Considerations

In this session we will cover the following topics:

Why the agreements matter?

Payments Agility: Airlines need to be ready to react to market changes and have ready access to providers already set up to route transactions to different acquirers so that they can leverage smart, dynamic transaction routing to quickly identify the best available acquirer at every location involved in the payment process. An airline’s agreements may potentially limit this agility.

Reduced Payment Costs and New Revenues: Driving down average transaction costs and improving authorisation rates will require airlines to integrate multiple payment partners for optimal processing, routing and settlement. These integrations may also lead to new revenues sources. The airline’s agreements need to allow for these integrations for such benefits to be realised.

How?

Assess Payments Contracts: Airlines should analyse their legacy payment agreements to see if they allow for this flexibility and optimisation and look to negotiate new terms/agreements.

Negotiate for certain Key Concepts: In the discussion we will outline some key terms to seek from the airline’s perspective in any new payment agreement negotiations.