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Travelex launches compensation payments system for airlines

26 May 2009  |  3109 views  |  0 Source: Travelex

Airlines can now provide immediate and secure customer compensation payments, thanks to a new system being launched today by Travelex Outsourcing.

The global leader in foreign exchange has developed this technology to deliver as many as 70 million compensation payments a year, following industry research that this number of bags will be mishandled by 2019.

The new web-based compensation system offers an increasingly important service to airlines at hubs around the world. An EU Directive introduced in December 2008 stated that technical problems were no longer covered by 'extraordinary circumstances'. Airlines have since been liable for any delays caused by mechanical issues, increasing the need for a fast and secure compensation system that can be used around the world.

The standalone system works in conjunction with Travelex's Cash Passport, a prepaid card that is signature and PIN protected. The new system loads up Cash Passports in real time in Euros, Dollars or GBP. Fully customisable by the airline, the system captures details from the airline ticket so that the operator simply needs to enter basic passenger details. It will then load the required amount of funds on to one of the waiting Cash Passport cards and is immediately ready for use.

Each user is provided with a different pin number, providing complete security for the receiver. Using the Cash Passport system also removes the need for airlines to store cash for compensation, avoiding the associated security risks and fulfilment costs.

Jonathan Bennett, Head of Corporate at Travelex Outsourcing said: "No -one wants to be in a situation where compensation is required, but these instances do happen and it pays to be prepared. Compensating your customers quickly and in a secure manner avoids any further risks such a losing money or theft, allowing airlines to not only improve their efficiencies but also their customer service. However, our system is not airline specific and any company needing to provide compensation to consumers can benefit from this service."

Identifying the product's innovation and coost-effectiveness, British Airways has used the Cash Passport since 2006 for more than 200,000 compensation payments. This launch will enhance BA's compensation package, creating further efficiencies and improving customer service.

Separately, British Airways adopts the Cash Passport

As part of a larger customer relations initiative aimed at upgrading its technology infrastructure and service processes (baggage, seating, etc.) compensation was identified as needing an overhaul. The airline identified Travelex' innovative prepaid Cash Passport as offering significant opportunities and benefits.

Now over 1,000 service desks issue a Visa Electron card loaded with the compensation in less than three minutes.

Having issued over 200,000 Cash Passport cards, British Airways has seen significant efficiency and security benefits while customers receive funds more conveniently and securely.

Benefits for the airline
• Replaced multiple time-consuming paper-based processes with one central, global streamlined process
• Loading cards in US Dollars, Euros or British Pounds takes less than three minutes
• Card details are linked directly into British Airways passenger systems with integrated management reporting to understand payouts in more detail
• Improved cashflow as the card eradicates the need to hold large amounts of cash at airports
• Unused balances can be returned to the airline after an agreed period
• Return on investment was achieved six months ahead of schedule

Benefits for passengers
• Loading and activation occurs in real time, which means the funds are immediately available
• Cardholders can access local currency at over 1 million Visa ATMs or spend funds directly at retailers around the world
• PIN and signature protection makes the card more secure than receiving compensation payments in foreign banknotes

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