April 23, 2024

ITM to tackle concerns over new card payment rules

ITM has launched a campaign to help travel buyers navigate new card payment rules after its members identified “copious concerns” about the practical implications of adhering to them in a corporate travel environment. 

The new rules, which come under the EU’s new Payment Services Directive (PSD2), are designed to protect against online fraud and will require an extra layer of authentication when booking travel with a card.

They will come into force in the UK from September 2021 despite Brexit and will mean cardholders will frequently need to undertake an extra step in the check-out process to verify their identity, typically via a one-time-password by SMS, phone or email. 

ITM’s buyer members say they have been getting conflicting information about whether GDS, OBT or other aggregator bookings (including NDC) are in scope when transacted via a company credit card.

Some buyers have been told that if a booking is made by a TMC consultant directly connected to the GDS the booking is out of scope, but if the corporate’s booker or traveller makes the booking via an OBT the extra authentication will be required.

Other buyers have been told the new process will apply to every single online booking regardless of source. 

The process also presents challenges for corporate travellers where bookings are made by a PA or travel booker.

“Obviously we fully understand the need to tackle credit card fraud, but PSD2 presents unique complexities in the business travel sector and buyers are facing huge discrepancies in the information they are receiving from stakeholders regarding what will be required when the directive is enforced later this year,” said Scott Davies, CEO, ITM. 

“The need for a holistic approach and consistent messaging is paramount.”

ITM’s Industry Affairs Committee has established a taskforce to bring together corporate card issuers, TMCs and technology suppliers to provide unified information and a webinar to tackle members’ concerns is due to take place on March 9.