ARC has published standard reason codes for debit memos, and has begun categorizing existing debit memos based on the new codes for several carriers.
The codes were developed by ARC’s Debit Memo Working Group (DMWG) last year. There are nine primary categories: commissions, credit card chargebacks, fares, taxes, refunds, exchanges, fees, bookings and miscellaneous. Each category has multiple secondary codes that further define why a memo was issued.
Currently, each
carrier has its own codes for debit memos. ARC said creating standardized codes will make it easier for both carriers and agencies to reduce their frequency by giving them more detailed reasons why each memo was issued.
In a statement, Expedia’s senior manager of global airline debit memos, Theresa Young, said that the standard codes will help cut down on debit memos issued. She called publishing the codes a “significant milestone for the industry.”
ARC said it is currently categorizing existing debit memos for the six carriers that issue the majority of memos, and will begin doing so for additional carriers through the rest of this year and in 2017.
“In late 2014, the DMWG determined that carriers, agents and GDSs needed to speak the same debit memo language in order to identify why they were issued,” Shelly Younger, manager of settlement services at ARC, said in a statement. “Working group members have invested an incredible amount of time and resources to achieve this goal within one year. ARC truly appreciates the group’s hard work and dedication to achieving this ambitious goal."
Debit memo categorization is integrated in ARC’s Memo Analyzer.
It is expected to be available in the Memo Manager product next year.