You must have JavaScript enabled to fully experience and utilize AA.com

Debit Memos


Credit Card Charge Backs
Debit Memo Tips
Non-Refundable Ticket Refund
Non-Refundable Ticket Endorsement
Period Of Ticket Validity
Incorrect Use Of A Ticket Designator
Special Contracts
Residual Value MCO Guidelines
GDS Booking Fee Monitoring Policy
Calculating Partial Refunds
Duplicate Tickets
Properly Voiding A Ticket
Late Reporting
Infant/Child Indicator
Disputes in General
Travel Agency Services

Credit Card Charge Backs

When the credit card company will not pay American Airlines, additional fees may apply to the debit memo(s) issued.

Debit memos resulting from a cardholder dispute - The first debit memo may be sent without any extra fee. The memo can be remedied by obtaining a signed, imprinted charge form with a current validation and a current authorization code. If the charge form used to clear the first debit memo results in a charge back, a second debit memo may be sent, this time with a $25.00 USD administrative fee assessed, and the only acceptable remedy for the debit memo will be a check. Payment must be made to American Airlines or via the sales reporting process. A second charge form will not be accepted.

Debit memos resulting from a card acceptance violation, invalid account number, card that was on warning bulletin, expired card, invalid or no approval code, submitted too late per credit card company, etc. - The first debit memo will include a $25.00 USD administrative fee. The memo may be remedied with a signed, imprinted charge form with a current validation and current authorization code. If the charge form used to clear the first debit memo results in a charge back, a second debit memo may be sent with an additional $25.00 USD administrative cost of processing.

Debit Memo Tips

Debit memos may be issued whenever an agent fails to follow the rules of the fare or makes an error in booking or ticketing. Below are some guidelines to help travel agencies avoid debit memos.

The best way to safeguard against receiving a debit memo is to make certain everything is documented in the PNR record. It is good practice to note the full name and phone number of the person assisting you and to request and confirm that the American Airlines agent has documented their advice in the historical remarks of the PNR.

The following are common violations that can cause a debit memo to be issued:

Non-Refundable Ticket Refund

Only American Airlines can process the refund of a non-refundable ticket, view Non-Refundable Ticket Refund procedures.

Non-Refundable Ticket Endorsement

Per the tariff rule/restrictions, all non-refundable tickets, issued or reissued, must indicate the following in the endorsement box. See Non-Refundable Ticket Endorsement.

Period Of Ticket Validity

Please refer to Ticket Validity on the Travel Agency Booking and Ticketing Home Index. Information may also be found in Conditions of Carriage.

Incorrect Use Of A Ticket Designator

Ticket designators are appended to the fare basis code, e.g., SA07ERD1/GMT05.

  • Verify the ticket designator is correct.
  • If ticketing from a contract that requires a specific ticket designator, double check your ticket. If the correct contracted ticket designator is not used, then a debit memo may be issued.
  • If the fare basis code / ticket designator is more than 13 characters, enter as many as possible in the correct order.
  • Note: You should not shorten the fare basis code to accommodate the ticket designator.

Special Contracts

  • Ensure that the CART and/or authorization number (AN) number are indicated in the IT box (CART then AN Number).
  • For special contracts such as Group and Meeting Travel and Corporate, the AN must appear in the tour code box preceded by the letter "A" or "AN". The agency is ultimately responsible to ensure that the AN is on the original ticket as well as any reissued ticket. The contracts state that the AN must be manually documented in the Tour Code Box or a debit memo may be issued.
  • For any contract that requires a CART number, you should ensure that it appears in the Tour Code Box of each ticket or you may be subject to a debit memo.

Exception: When American provides specific requirements indicating information must be added to the IT box, the "other documentation supersedes" the special contract information in the tour code box (ie. Travel Notice).

Residual Value MCO Guidelines

View Residual Value MCO Guidelines, as listed on the Agency Reference.

GDS Booking Fee Monitoring Policy

American Airlines incurs GDS segment booking fees for inactive segments that are present in the GDS PNR within 24 hours of departure time.

See Agency Reference - Computerized Reservation System (GDS) Procedures for complete policy information.

Calculating Partial Refunds

When refunding a partially used refundable ticket, the refund should be calculated according to the amount actually paid less the amount actually used, less any penalty. Contact tariff for assistance.

Duplicate Tickets

Travel agencies should do all possible to avoid the issuance of duplicate/identical tickets. To avoid duplicate ticketing:

  1. Void – If within the applicable ticketed window, VOID the ticket and issue a completely new ticket.
  2. Reissue/Exchange – If the ticketed fare allows changes, reissue/exchange the ticket for the new itinerary, rather than issue multiple tickets within the same PNR.
  3. Refund – If the ticketed fare is refundable, issue/process a refund and then issue a completely new ticket in the same PNR.

If a customer has accidentally paid for truly duplicate tickets, you may submit a Travel Agency Duplicate Ticket Refund Request or contact the Electronic Support Desk (ESD). ESD will also assess a duplicate ticket process fee. You may refer to Duplicate Tickets for more details.

Properly Voiding A Ticket

Please refer to Voids on the E-Ticketing page in the Agency Reference.

Late Reporting

Each report period ends at the close of business on Sunday. The report should be sent to the area bank as soon as possible, but no later than midnight Tuesday (or Wednesday if the Monday or Tuesday is a holiday) under the terms of the Agent Reporting Agreement. If ARC returns an item to the agency for correction, the resubmittal is considered a late report when keyed with an "O" error code, and a debit memo may be issued for a late sale reporting charge equal to 5% of the ticket fare amount.

Infant/Child Indicator

If a ticket is issued for an infant or child the "IN" OR "CH" indicator must follow the fare basis code. If using a ticket designator, document as follows: SA07ERD1CH/GMT05 or SA07ERD1IN/GMT05 (Only 13 characters are allowed in this field. Document in the correct order and do not alter the fare basis code).

  • In the example given, the T05 will drop off.

Disputes in General

Per the addendum to the ARC agreement, an agency must pay or resolve debit memos within 30 days. Please use ARC Memo Manager for all disputes.

  • Required Documentation for disputing a debit memo - Provide comments, upload or attach any documentation to verify your claim in ARC Memo Manager. (example - ARC/BSP report, copy of waiver, copy of contract).

Credit Card Transactions

Travel Agencies must obtain a valid credit card authorization on all credit card transactions. Additionally, the valid authorization must appear on all coupons of the ticket. Please see the guidelines set forth in the ARC Industry Agents Handbook, Section 8.2.

Any credit card company merchant fees issued by the credit card company for policy violations will be passed on to the travel agency in the form of a debit memo. These fees can be easily avoided by obtaining a valid approval code for all credit card transactions.

Travel Agency Services

For questions about specific debit memos, contact Travel Agency Services:

Phone: (817) 931-0088
Fax: (817) 963-9002
Email: TAS@aa.com

Travel Agency Services
American Airlines
P.O. Box 619616
MD 5503
DFW Airport, Texas 75261-9616



 


Updated March 4, 2014



Information contained on this website is subject to change at any time without notice. American Airlines shall not be liable for any consequences resulting from your reliance on the information.