Payments, Accounting and Financial Procedures in Travel
How money moves
Travel businesses handle cash, cards, bank transfers and increasingly digital wallets and virtual cards. IATA agencies settle airline sales through the Billing and Settlement Plan (BSP), with reporting cycles and remittance deadlines; debit notes (ADMs) and credit memos (ACMs) adjust accounts. Credit card acceptance brings merchant fees, chargeback risk and PCI DSS obligations.
Accounting basics
Know the difference between an invoice (a request for payment) and a receipt (proof of payment); between commission (paid by the supplier) and a service fee (charged to the client); between a deposit and full payment. Client or trust accounts hold money belonging to suppliers and must not be mixed with operating funds. Refunds follow fare rules and may take weeks; taxes may be refundable even when the fare is not.
Traps
Questions test who bears a chargeback (usually the merchant, unless liability shifts), whether a fee is refundable, and reconciliation of BSP statements. Never promise a refund before the supplier confirms it.
Worked example
A ticket costs USD 800 (fare 650 plus tax 150). The client cancels before travel on a non-refundable fare but refundable taxes. Refund = USD 150 less any supplier or agency fee. Rule of thumb: separate fare, taxes and fees on every quote so refunds are easy to explain.