UATP – Overview

What is UATP?

Airline-owned global corporate travel payment

network

Platform to track manage and grow corporate sales

− Annual UATP volume exceeded USD 13 billion in 2013

− Doubled in the last 8 years

Lowers airline distribution costs by eliminating or

reducing credit card fees

− UATP saves the airline industry in excess of USD 200 million

in credit card costs per annum

The First Card in the World Was…

1. UATP

2. Diners Club

3. American Express

4. Visa

5. MasterCard

1005 12345 678901

3612 345678 0009

3782 456789 01001

4901 1234 5678 0000

5912 3456 7890 1234

Airlines who issue

their own UATP

account & have

the direct

relationship with

the corporate

subscriber

Entities who accept

UATP as a valid

form of payment

through distribution

channels

Corporations who

use UATP as

their preferred

method of

payment for

airline tickets

The organization

provides the

infrastructure &

support to permit

the program to

operate & grow

IssuersMerchants/

AcquirersCardholders UATP

Participants in the UATP Network

Airline-Owned

5

Corporations Using UATP

UATP Compared to Other Cards

Other Card BrandsUATP

Structure Airlines are Issuers Visa is brand, banks are Issuers

Lodged & corporate Walking & personal

3-digit accounting code Different number for each market

Virtually non existent Additional acceptance costs

Covering all markets & channels Market by market basis

Flat global rate Vary from market to market

Global Mostly local

Fraud

Agreement

Commission

Acquiring

Merchant Number

Account type

Why Airlines Issue UATP

Growth – more corporate business

Revenue – an incremental revenue stream

Savings – lower credit card fees

New Revenue Stream

Corporate clients can buy travel not only from the

issuing airline, but also from more than 250 other global

airlines

An airline Issuer of UATP earns commission revenue on

every ticket sale made on a competing airline using its

card

The average of current UATP Issuers is 55% “On Us”

vs. 45% OAL sales

Cost of Corporate Cards

Airlines pay on average 2-3% commission on

corporate credit cards

Accepting UATP as a Merchant costs 1.75% (IATA

ICH)

Issuing an own UATP card costs the airline 0% on

tickets bought with its own UATP card (“On-Us” Sales)

Why Corporates Choose UATP

Better travel data

Better customer experience

Savings

Data tools

11

Web-based, hosted by

UATP

Easy-to-use intuitive

interface

Multi-currency

Statements available in

multiple languages

System evolves with

UATP

12

UATP Card Management Platform

Full Suite of Standard

Reports –file exports

Over 65K custom report

combinations possible!

“Account Info Module”

includes credit limit

inquiry

13

UATP Cardholder Client Portal

Borica – UATP Cooperation

In 2012 Borica Bankservice and UATP signed a

cooperative agreement

Initial goal was the creation of a Service Center in support of

UATP Issuer airlines

Now in its third year of operation, the Service Center is

expanding its role in support of new UATP Issuers

A call center to support corporate client cardholders is also in

consideration

Next steps in this cooperative effort include software

development resources to support the development of

next generations of UATP applications

Alternate Forms of Payment (AFP)

via UATP Rails

Agenda

Background

Benefits

UATP Role

UATP - AFP integration

Process Flow

Reports

Conclusion

Background

First AFP processing launched in 2007

16 carriers currently utilizing UATP AFP processing

American Air Berlin

Aeromexico British Airways

Delta Etihad

Iberia TAM

Southwest United

Virgin JetBlue

Air Canada AirTran

Lufthansa US Airways

70+ national markets and currencies enabled

4 new AFP airline implementations in progress

UATP - AFP Partners

Benefits

For Airlines:

Simplifies integration allowing use of existing UATP connectivity

and acceptance methods

UATP provides reports to assist with daily reconciliation of AFP

payments

UATP processing minimizes Merchant modifications

No UATP processing cost to Merchant

For AFPs

Helps them sign up Merchant airlines quicker and easier

For UATP

Leverages UATP network infrastructure and processing capacity

to lower costs for UATP Issuers

UATP Role

Contracts signed directly between AFP and airline

Merchant

UATP not involved with commercial negotiations/terms

Settlement outside of UATP schemes (ICH or USS) and

directly between AFP and airline Merchant

UATP supports implementation

UATP - AFP Integration

Existing airline Merchant connectivity to UATP authorization and acquiring services remain unchanged

New development limited to an API between airline website and AFP for initial customer authentication

AFP transactions are bundled together with normal UATP transactions in Merchant capture files to UATP Are processed and appear on standard reports

Each AFP is assigned a unique UATP IIN Single-use UATP number generated by AFP

Reconciliation of AFP transactions by Merchants may require additional reports, which are produced and offered as option to airline Merchants

21

UATP – AFP Process

22

Consumer

AFP

UATP PSS

UATP Acq.

UATP Auth.

Airline

Air.com

1

6

57

89

10

2

34

Optional Reports

Summary.csv file contains the sum of each of the supporting

detail files

Transactions.csv file contains all of the sales and refunds

submitted to ATCAN on that day

Debits.csv file is a subset of the Transactions file containing only

sales

Credits.csv is a subset of the Transactions file containing only the

refunds

PendingTransaction.csv file contains unprocessed AFP

transactions

Exceptions.csv file is a subset of the PendingTransactions file

containing transactions which failed to process with AFP

PreviouslyPendingTransactions.csv file contains any

transactions from a previous days which have now processed

ChargebacksAndReversals.csv file contains AFP transactions

that are being charged back

23

Summary Report

DescriptionTransaction

Gross

AFP

Fees

Transaction

Net

Transaction

Count

Debits 19745.37

-

380.49 19364.88 51

Credits -892.3 20.44 -871.86 7

Total ATCAN Transactions 18853.07

-

360.05 18493.02 58

Chargebacks -1609.7 14.51 -1595.19 7

Previously Pending -838.5 16.1 -822.4 5

Total transfer to Merchant 16404.87

-

329.44 16075.43 0

Pending Transactions -918.57 27

Non-settled Reversals 0 0 0 0

24

Chargebacks Report

25

Merchant

Code

Issuer

Code

Processing

Date Transaction ID Invoice ID

PayPal Reference

ID

PayPal

Reference

ID Type

Transaction

Event Code

279 112 6/10/2013

3AW69026209100

90G

999292000000

00

2CZ96697VW8272

49E TXN T1107

279 112 6/10/2013

3CK79038879709

02V

999236000000

00

607290442W98901

1K TXN T1107

279 112 6/10/2013

9C6991068J92771

26

999236000000

00

7W798148JN8360

493 TXN T1201

279 112 6/10/2013

268208078W0100

94E

999237000000

00

8EY499748G1621

71N TXN T1106

279 112 6/10/2013

67F20199BE6004

809

999236000000

00

9C6991068J92771

26 TXN T0106

279 112 6/10/2013

7F0688024G0449

91T

999292000000

00

8T384919Y203943

0V TXN T0106

279 112 6/10/2013

8T384919Y20394

30V

999292000000

00

8D617876QN2492

39K TXN T1201

Chargeback Description

Transaction Initiation

Date

Transaction

Completion Date

Transaction

Debit or

Credit

Gross

Transaction

Amount

Gross

Transaction

Currency

Payment Refund initiated by

merchant

Jun 11 2013

8:46AM

Jun 11 2013

8:46AM DR 474.8 USD

Payment Refund initiated by

merchant

Jun 10 2013

11:10AM

Jun 10 2013

11:10AM DR 308.8 USD

Chargeback

Jun 10 2013

11:09AM

Jun 10 2013

11:09AM DR 20.3 USD

Account-to-Account Payment

Jun 10 2013

9:50AM

Jun 10 2013

9:50AM DR 731.8 USD

Chargeback Processing Fee

Jun 10 2013

11:09AM

Jun 10 2013

11:09AM DR 10 USD

Chargeback Processing Fee

Jun 10 2013

1:17PM

Jun 10 2013

1:17PM DR 10 USD

Chargeback

Jun 10 2013

1:17PM

Jun 10 2013

1:17PM DR 54 USD

Fee

DR/CR

Fee

Amount

Fee

Currency Merchant ID Payer ID File Date Custom Field

CR 8.75 USD

AK3VTD8LP9

QDY

QQELGPTRBDVW

L

Jun 11 2013

12:00AM

052W684DSERKG5437EA7A14

4…..

CR 5.76 USD

AK3VTD8LP9

QDY UHCE86T3FB2QJ

Jun 11 2013

12:00AM

W68ER3DS9FCF94AF58941D4

8…..

0

AK3VTD8LP9

QDY 6LZQ43ZQN3KBU

Jun 11 2013

12:00AM

E292338A7964437EA7A1448B5

…..

0

AK3VTD8LP9

QDY

NJLNHACM6UQQ

U

Jun 11 2013

12:00AM

FA7B7649FCF94AF58941D483

E…..

0

AK3VTD8LP9

QDY

Jun 11 2013

12:00AM

E292338A7964437EA7A1448B5

…..

0

AK3VTD8LP9

QDY

Jun 11 2013

12:00AM

A5523DFA3D39467D9F36DFFD

4…..

0

AK3VTD8LP9

QDY 6LZQ43ZQN3KBU

Jun 11 2013

12:00AM

A5523DFA3D39467D9F36DFFD

4…..

Conclusion

Complete AFP implementations currently in

progress

Weekend AFP processing

Explore new AFP partnerships based on airline

requests