Upcoming Visa Rules Have TMCs Scrambling On How To Make Online Airline Buys

[UPDATE, June 14, 2019: Starting June 17, users of Southwest Airlines' Swabiz corporate booking portal must insert their credit card's three- or four-digit security code. According to the airline, that includes those using a "Swabiz ghost card" (when card info wasn't stored before June 17), those using a stored personal card (for the first purchase on or after June 17) and those manually entering card details (for every purchase from June 17). Southwest bookings via global distribution systems and the carrier's direct connect API, as well as those using UATP cards, are exempt.]

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Author: David Jonas

David Jonas in 2006 co-founded business media firm ProMedia.travel after ten years as a journalist with Business Travel News. David rejoined BTN in 2010 as executive editor when its parent company acquired ProMedia, and in 2014 co-created The Company Dime. David has a bachelor's degree in communications from Cornell University.

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Ron DiLeo
Advisor
Ron DiLeo

This is an interesting move by Visa. It should spell accelerated sales for Amex and Mastercard in the business travel TMC space as it pretty much takes Visa out of the managed travel game.

Steve Domin
Subscriber
Steve Domin

Hi Ron – with Strong Customer Authentication (SCA) being enforced throughout Europe this year (the law goes live September 14th) it feels like there is a need for a better solution for managed travel anyway.

Paul Raymond
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Paul Raymond

I think this is likely to be the first step in securing payment card transactions in the managed travel space. With payment processes like virtual card providing a more secure experience and enabling access to additional security functions like CVV, it is only a matter of time before all schemes look to protect their issuers by adding this capability and PSD2 will only extend these requirements.

Martin Warner
Advisor
Martin Warner

Paul – are Virtual Cards by VISA issuers exempt from the need for CVV entry for CNP transactions?

Bennett Jordan
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Bennett Jordan

Great question Martin. As the industry is moving down this route I would hope Visa have some solution for this.

Mario Kriebel
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Mario Kriebel

Virtual cards do have a CVC (at least to my knowledge). The only benefit is that you have the CVC at the point of sale when you create the card for a certain transaction, so there is no hassle for the travel agent to ask the cardholder for the code. The challenge is still to create a smooth and integrated booking/card generating flow.