UATP / NRCC Payment Strategy for Online Booking Site (IBE)

Why Merchant Fees Matter in Online Airline Ticketing

When implementing an online flight booking platform, merchant fees imposed by payment gateways are a significant consideration. These fees can increase the cost of an air ticket by 2% to 5%, depending on the selected gateway, which may reduce price competitiveness.

Some airlines accept credit cards during the ticketing process and either waive or apply a minimal merchant fee. Therefore, it’s worth exploring how UATP / NRCC arrangements can be leveraged to minimize merchant fees passed on to customers.

Credit Card Handling & PCI DSS Compliance
To utilize this model, the booking site must collect credit card information directly, bypassing the standard payment gateway integration. This approach requires the platform to comply with PCI DSS standards. As a result, the server infrastructure must be redesigned, potentially increasing server costs by up to 2.5 times compared to a simpler architecture.

3DS Verification Implementation
Although the website does not process the payment itself, it must implement 3DS verification via the payment gateway to validate the credit card number during booking.

NRCC Workflow Efficiency
NRCC works best when the booking site's PCC/OID has ticketing capabilities. In this case, the credit card number can be passed directly during ticketing, allowing immediate card authorization and real-time feedback to the customer.
However, if the ticket is issued by another PCC/OID or a wholesaler, the credit card number can only be included as the form of payment in the PNR. Ticketing will then be handled by operations staff or an auto-ticketing engine. This means customers won’t receive immediate confirmation of their card transaction status.

Markup Handling on Private Fares
If the booking site includes a markup on certain private fares, the airline will charge only the base airfare. The markup portion must be collected separately via a payment gateway. Consequently, customers will see two separate charges on their credit card statement.

Airline Compatibility with NRCC
Not all airlines support NRCC. It’s essential to maintain a lookup table of supported airlines based on the ticketing PCC/OID. Two sets of workflows and calculations must be implemented: one for bookings with NRCC and another for those without.

Merchant Fees on NRCC Transactions
Not all airlines offer a 0% merchant fee for NRCC transactions. Some charge a fee—often labeled as an "OB Fee"—or apply fees only on specific routes. This information can typically be retrieved during the pricing process and displayed on the booking form.

If you need assistance understanding your business processes and designing a tailored payment strategy, feel free to reach out to us.

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