Debit Memo Policy-USA - Air Canada

DEBIT MEMO POLICY for TRAVEL AGENTS in THE U.S.−Source Reasons Time LimitSales Audit Fare, tax, cash rewards violations 6 months from date of saleRefund andExchange AuditFare, tax, cash rewards,compensation, change fee violations6 months from date of refundor exchangeRefund Processing Cash rewards; commission recalls 6 months from date of refundSales AccountingCRS AuditUnreported sales and duplicate usage, tax issuesoverdrawn MPDs, PTAs, credit card charge-backsNon compliance with Air Canada’s CRSTicketingand Booking procedures9 months from final travel date6 months from final travel dateWith routine sales and refund audits, the 6-month time limit applies only to normal errors. If Air Canadasuspects abuse or fraud, an in-depth audit of this agency would follow and not be subject to any time limit.− Credit card charge-backs may be debited beyond the time limit if the card processor invokes longertimeframes, allowing the cardholder extended time frame to dispute/reject the credit transaction.− Under collection of taxes and missing information on tax exempt tickets will be treated as an exception.Air Canada is subject to audit assessment by tax authorities, for a period of 7 years.− A ticketing/refund error fee may apply for failure to ticket/refund according to the Air Canada policy− Credit Memo requests for unclaimed Cash Rewards are:- Permitted: If within 6 months from the date of ticket issuance/flight pass sale.A $25 CA service fee will be assessed per ticket.- Denied: If greater than 6 months from the date of ticket issuance/flight pass saleMinimum ValueThe minimum value of a debit memo varies according to the situation:$5 CA Cash Rewards audit; anything less than $5 will neither be debited, or credited$5 CA Refund/Exchange audit: Under collection of supplementary fee, such as achange fee$10 CA Non-compliance to Air Canada’s CRS booking and ticketing policy$15 CA Fare AuditMultiple items, below the minimum value, may be accumulated for debit memo issuance. Recall Cash Rewardsitems have nil minimum value. For taxes, including the lack of proper documentation for tax exempt tickets,surcharges or fees, there is no minimum value.The charges will be converted from CAD to USD using the daily exchange rate.January 9, 2013

Debit Note CorrespondenceAgency correspondence is responded on average, within 10 working days of receipt. Agency disputes, on debitmemos that have already been paid, will not be accepted, beyond two (2) years from the original debit memoissue date.The above standards apply to routine fares and Cash Rewards audit process. In the event of consistent abuse,suspected fraud, interline billings (OAL does not accept fare plated on 014), or any other extraordinarycircumstance that may require an in-depth audit review, the above items would no longer be considered valid.The above information summarizes our policy for the key audit areas, but should not be construed as completeand final.The charges will be converted from CAD to USD using the daily exchange rate.January 9, 2013