Debit and credit memo policies

Agency Debit Memo (ADM) policy for travel agents

General information

Cathay Pacific Airways (CX) / Cathay Dragon Airlines (KA) may issue ADMs to agents to collect amounts or make adjustments related to issuance and use of ARC Standard Traffic Documents validated on Cathay Pacific / Cathay Dragon, regardless of which carriers are included in the itinerary.

In general, the scope covers but not limits to:

  • Under collection and/or omission on fares, tour package prices, penalties, re-booking fees, service charges, fuel surcharges etc.
  • Under collection and/or omission of taxes, any government or local authority charges and fees etc.
  • Commission over-claimed.
  • Contravention of fare, tax and refund rules.
  • Excess refund.
  • Recall of commission on refunds.
  • Non-compliance with Cathay Pacific / Cathay Dragon GDS ticketing and booking procedures.
  • Non-compliance with terms and conditions of Sales Agreements.
  • Unreported traffic documents.
  • Credit card chargeback.
  • Administration fee for form of payment change.
  • Transaction fee for the use of EasyPay to pay our tickets.
  • Penalty/transaction fee for the use of credit card to pay our tickets which we don't accept credit card payment.
  • Penalty/transaction fee for the use of agent's own payment card or other Alternative Transfer Methods to pay our tickets without our explicit consent.
  • Duplicate use/refund of traffic documents.
  • Errors made either by the agent or ARC Processing Centre in ARC report.

Note: Alternative uses of ADMs are permitted if agreed bilaterally between Cathay Pacific / Cathay Dragon and the agent.

Processing of ADMs

Cathay Pacific / Cathay Dragon will issue ADMs to agents through ARC Memo Manager on a daily basis. To adjust sales, ADM can be issued within nine months of the final travel date or the expiry date of the document if the final travel date cannot be established. To adjust refund, ADM can be issued within nine months of the ARC remittance date on which the refund document was processed. Any debit action initiated beyond the afore-mentioned period, Cathay Pacific / Cathay Dragon will handle directly with the agent. With the following exceptions:

  • Omission and/or under-collection of taxes and local authority charges and fees for tax reporting and audit purpose
  • Unreported sales and credit card chargebacks

Cathay Pacific / Cathay Dragon will not send physical copies of ADMs to agents but will provide agents with supporting documents and breakdowns of the debit upon request. For complicated calculations and with ADM issued for a series of tickets on taxes and surcharges, supporting listing and breakdowns will be attached to ADM in ARC Memo Manager at the time of issuance.

Cathay Pacific / Cathay Dragon will not issue more than one ADM to recall fare/surcharges/taxes in relation to the same ticket unless the nature of collection or adjustment is totally different from the previously issued ADM. For instance, the agent subsequently refunds the ticket and it is found over-refunded, Cathay Pacific / Cathay Dragon would send another ADM to the agent in relation to that ticket which an ADM has been sent before for under-report of fare/surcharge/taxes.

Cathay Pacific / Cathay Dragon will issue an ADM for a specific transaction only, and will not group unrelated transaction together. However, more than one charge can be included in one ADM if the reason for the charge is the same.

Cathay Pacific / Cathay Dragon will not issue a single ADM with an amount less than USD $20 before adding the applicable administration fees list in 1.6 below.

Apart from fare discrepancy of the ticket, Cathay Pacific / Cathay Dragon will levy the following administration fees and/or charges and reserve the right to amend these administration fees to cover costs relating to the processing of ADM with the following reasons, but not limit to:

ADM issuance reasons Administration fee or charge per ticket

Missing tour code

USD $100 each ticket

Wrong tour code

USD $100 each ticket

Missing conjunction ticket

USD $100 each ticket

First OD Abuse (10 OD abuse in a reporting period)

USD $10,000 & delink

Second OD Abuse

USD $50,000 & delink

Third OD Abuse

Consolidator contact will be removed from the Agency

Cathay Pacific / Cathay Dragon will levy the higher of the ADM fees or 21% administration fee of the ADM amount. This charge will be reversed only upon full acceptance of the dispute for wrong ADM issuance by Cathay Pacific / Cathay Dragon.

Penalty on unreported sales will be issued by Cathay Pacific via ADM as follows:
USD $100 per ticket.

Irregularities will be cleaned up if an offence occurred 12 months onward from the last instance.

ADM correspondence and dispute

Agents who wish to dispute the ADMs issued by Cathay Pacific / Cathay Dragon should either response via ARC Memo Manager or email the reason for dispute

Cathay Pacific / Cathay Dragon will respond agent's ADM disputes within 60 days of receipt as per IATA Resolution 850.

Dispute for tickets issued under Global Distribution System (GDS) fare guarantees should be made to GDSs. Reimbursement for ADMs deducted through ARC Memo Manager should be made to agents directly by GDS.

Agency Credit Memo (ACM) policy for travel agents

Cathay Pacific / Cathay Dragon will issue ACMs to reimburse or make adjustments to agents on cash activities resulted from errors made by either agents or ARC Processing Centre. Over-payment for transportation or related charges and fees paid by credit card will only be made to the original credit card used for the ticket purchase.

ACM Request through Sales Summary Adjustment Request

Agency who request for ACM for sales reporting omission will be charged USD $100 for administration fee per ticket. Copies of supporting documents should be scanned and sent as an attachment to Absence of supporting would result in delay in processing of ACM request.

Permitted time frame and minimum adjustment amount

Adjustment request will not be accepted after one years from date of issuance of ticket.

Amounts less than USD $100 per transaction will not be handled.

Processing of ACM request

Cathay Pacific / Cathay Dragon will only process ACMs from agents for transactions with the same reason. Grouping of unrelated transactions in one ACM Request is not permitted.

Cathay Pacific / Cathay Dragon will authorize ACM Request from agents.

  • Cathay Pacific / Cathay Dragon will state reason(s) and/or revised value for rejected ACM request. Agent can re-submit ACM request via Sales Summary Adjustment Request with revised value.
  • For rejected ACM request, no ACM will be issued unless it is bilaterally agreed between Cathay Pacific / Cathay Dragon and the agent for re-submission through ACM Request via Sales Summary Adjustment Request.

Although the above summarize the ADM/ACM policy of Cathay Pacific / Cathay Dragon, they should not be construed as complete and final as they will be reviewed and subject to change by Cathay Pacific / Cathay Dragon from time to time when needed. In the event of recurrent abuse, suspected fraud and other extraordinary circumstances, an in-depth audit may be performed, and the above would no longer be considered as valid.