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Chargebacks and ADMs: Summary of the situation

ASATA has received several queries from travel agents outlining the following situation. Customers whose flights have been cancelled due to COVID-19 have received a voucher for future travel from the relevant airline. However, the customer in question has disputed this and wanted a refund instead. The customer has gone and lodged a dispute with their bank saying they want the transaction reversed because the services were not rendered. The bank has then reversed the transaction, and the money has then left the bank account of whomever the customer paid (travel agent or airline). In the case of the airlines, some airlines have sent an agency debit memo (ADM) to the travel agent who facilitated the booking.

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