Thursday, October 14, 2004
For consumers concerned about firm's bankruptcy.
In light of US airways' bankruptcy filing (the airline's hub is in Philadelphia), Here's a helpful tip I received. *Go ahead and buy tickets but use an American Express card*
Why an American Express card?
If the airline ceases operation and you, the traveler, were unable to use the tickets you purchased on your American Express card, a dispute can be filed with the Customer Service department. Given a bankruptcy situation where service is halted, the Customer Service department would refund the Corporate Card for the unusable tickets (minus agency service fee). American Express sees airline tickets as services to be provided at some future date and, if those services are not provided, then the contractual understanding has been broken. Historically, it has been much more difficult to receive credit back from Visa and MasterCard because of their bank affiliations. Once you have purchased your airline ticket and paid your bill, that transaction is considered concluded.
This is useful information for all purchases of 'services to be provided in the future' and not just airline tickets. I am not sure if this policy exists in all countries that Amex operates in.
Why an American Express card?
If the airline ceases operation and you, the traveler, were unable to use the tickets you purchased on your American Express card, a dispute can be filed with the Customer Service department. Given a bankruptcy situation where service is halted, the Customer Service department would refund the Corporate Card for the unusable tickets (minus agency service fee). American Express sees airline tickets as services to be provided at some future date and, if those services are not provided, then the contractual understanding has been broken. Historically, it has been much more difficult to receive credit back from Visa and MasterCard because of their bank affiliations. Once you have purchased your airline ticket and paid your bill, that transaction is considered concluded.
This is useful information for all purchases of 'services to be provided in the future' and not just airline tickets. I am not sure if this policy exists in all countries that Amex operates in.
