SOMEseven ABTA agents have been approached by credit-card companies requesting extra security in case of failure.
The association’s head of financial services, Mike Monk, said the members had been contacted by Barclays Merchant Services or Natwest Streamline, and asked to pay a bond or some other form of security because they were considered a bad risk.
“The point is that they are bonded with us. I think it is wrong that they should be asked for extra security,” he said.
Monks stressed that ABTA always paid off customers in the event of a member failing, so there was never a need for a cardholder to lodge a claim against their credit-card company.
He is seeking talks with the Credit-Card Research Group, a trade association representing credit-card companies. Monks said ABTA was willing to extend an existing agreement it has with the CCRG to spell out that it would make good any losses incurred by the failure of agents.
CCRG acting director Kathy Lewis said it was up to individual credit-card companies which merchants they dealt with and how they assessed risk.
However, she said her association was willing to talk to ABTA about drawing up a new agreement specifically covering travel agents.