Airline payments run on a mix of BSP/ARC remittance cycles, card acquiring, and emerging digital wallets. Modernizing does not mean abandoning clearing houses overnight; it means layering new rails while keeping accounting precise. Here’s how leading teams are approaching the transition.
Understand the current state
Document every payment type you accept and how it settles:
- Agency sales remitted via BSP/ARC with periodic billing.
- Direct credit card acquiring with daily funding and chargeback exposure.
- Alternative methods (wallets, instant bank transfers) with their own reconciliation files.
Knowing the mix helps prioritize which flows to modernize first.
Introduce modern rails safely
- Separate authorization from capture: Offers commit quickly, but captures wait until fulfillment milestones to reduce refunds.
- Support tokenized payments: Vault cards securely so re-accommodation or ancillaries can reuse stored instruments with consent.
- Add instant payout options: For refunds or compensation, consider push-to-card or real-time payment rails that delight travelers and lower costs.
Reconciliation discipline
Whether funds arrive via BSP or a new API, reconciliation is the make-or-break step. Tie every payment transaction to the order line item. Automate matching between settlement files, gateway reports, and internal ledgers. Surface mismatches promptly with owner assignments.
- Authorization approval rate by channel.
- Chargeback volume and recovery success.
- Average refund time per payment method.
- Breakage or unapplied cash awaiting reconciliation.
Compliance considerations
New rails bring new obligations: PSD2 strong customer authentication in Europe, PCI scope for stored cards, local tax reporting requirements. Engage legal and finance early so the modernization roadmap accounts for licensing and audits.
Blending BSP/ARC with modern rails is achievable when you treat payments as a product. Travelers get faster refunds, finance sees cleaner books, and you gain the flexibility to support new retailing models.