Travel made easier by credit card deal

The Civil Aviation Authority has announced it is to work closely with one of the top credit card companies in a bid to make travel easier.

15:11 27 July 2004

The Civil Aviation Authority has announced it is to work closely with one of the top credit card companies in a bid to make travel easier.

Managed by the CAA, ATOL gives protection against losing money or being stranded abroad to holidaymakers who buy from tour operators.

The agreement with Barclaycard Merchant Services (BMS) means refunding credit card customers of failed Air Travel Organiser's Licensing (ATOL) firms, as well as reducing security requirements.

This reduction will apply to travel firms who normally are required to provide security (usually in the form of cash deposits or deferred settlement) for their credit card facilities.

Deputy director of the consumer protection group at the CAA, David Moesli, said: "We believe the new arrangements will be of significant benefit to travel firms while giving BMS the comfort it needs to relax its current security requirements."

He added: "Travel firms have been concerned about what has been perceived as double bonding, and a reduction in security will be a significant step towards eliminating this. Customers will continue to be fully protected."

Customers who paid for holidays with credit cards will now be able to get an ATOL bond as a refund. This is part of the CAA agreement to change its "Credit Card Charter" so that customers do not lose out if a tour operator, which had an agreement with BMS, fails.

"We plan to begin reviewing current security arrangements immediately and some Air Travel Organiser's Licensing holders will have their requirements reduced or removed in the next few months," said Mark Evans, the managing director of Barclaycard Merchant Services.