ICH User Group
UATP Update
20-22 October 2010
What is UATP?
• Low cost payment network privately owned by 21
airlines worldwide
• Founded in 1936 (the world’s first charge card)
• UATP is accepted as a valid form of payment by more
than 260 Merchant airlines and thousands of travel
agencies
• Annual UATP sales (2009) totaled approximately USD
9 billion
• Processed through GDSs & directly like other
payment solutions (e.g., VISA)
• One of the four ICH settlement classes
Participants in the UATP Network
• Issuers – are the airlines who issue their own UATP
card and have the direct relationship with the
Corporate Subscribers
• Merchants – are the entities who accept the UATP
card as a form of payment through distribution
channels
• Corporate Subscribers – are the cardholders of the
UATP card. UATP accounts are held by thousands of
major corporations worldwide
• UATP – is the organization which provides the
infrastructure and support to permit the program to
operate and grow
Background
• In 2006, UATP and IATA worked together
to establish the ATCAN-ICH link
• Created an automated means for
participants to have UATP transactions
submitted for settlement via ICH
• UATP Members could opt-out of the link
• Currently supporting 140 Merchants
SIS and UATP
• In late 2009, UATP began working with
IATA to implement SIS as a replacement to
the ATCAN-ICH link
• UATP established a working group to
address SIS (UATP WG)
• Working group reports to full membership
biannually
Master Invoice
• Many UATP Members expressed concern over
the potential for significant invoice fees under
SIS
• UATP WG and IATA worked together to create a
master invoice
• Master invoice aggregates multiple ATCAN
invoices and adjustments/chargebacks to create
a single SIS invoice per settlement period for
each Merchant/Issuer pairing
• Reduces costs to UATP Members
Master Invoice
SIS Legal Invoice*
Master Inv 1
ATCAN
Master Inv 1**
ATCAN Inv 1
Original Inv 1
Original Inv 2
Original Inv 3
Original Inv 1
Original Inv 2
Original Inv 3
Original Inv 1
Original Inv 2
Original Inv 3
SIS
ATCAN Inv 2
Original Inv 4
Original Inv 5
Original Inv 6
Original Inv 4
Original Inv 5
Original Inv 6
Original Inv 4
Original Inv 5
Original Inv 6
Net
ATCAN Inv 3
Original Inv 7
Original Inv 8
Original Inv 9
Original Inv 7
Original Inv 8
Original Inv 9
Original Inv 7
Original Inv 8
Original Inv 9
ICH
Discount
Summary Sheet
Existing UATP Process
Master Inv 1
(aggregated
total)
* May include all legal invoice elements
** ATCAN invoice numbers will be dropped
Original Inv 1
Original Inv 2
Original Inv 3
Original Inv 4
Original Inv 5
Original Inv 6
Original Inv 7
Original Inv 8
Original Inv 9
Discount
SIS Reconciliation
Data File
Original Inv 1
Original Inv 2
Original Inv 3
Original Inv 4
Original Inv 5
Original Inv 6
Original Inv 7
Original Inv 8
Original Inv 9
Discount
Net
UATP-SIS Process
8) ICH Pays
Merchant
Airline
Merchant
1) Subscriber
Buys
Ticket
Cardholder
Data
Funds
7) ATCAN Submits to ICH Through
SIS
3) Merchant
Receives
Report
ICH
2) Merchant Submits
Invoice Data
ATCAN
(Acquirer)
5) Issuer Invoices
Cardholder
6) Cardholder
Pays Issuer
8) Issuer Collects
From Issuer
4) ATCAN Invoice
Data To Issuer
Issuer
Opt-In/Opt-Out
• UATP Members may opt-out of the
automated process
• Members would need to establish their
own connectivity to SIS
• Would submit UATP transaction in the
same manner as other settlement classes
Comparison
Opt-In
Opt-Out
Reduced Cost through Master
Invoice
Minimal In-House Development
Yes
No
Yes
No
Reduced Billing/Settlement
Errors
Reconciliation Data File
Yes
No
Yes
No
Recent Accomplishments
• Reconciliation File – Finalized and
approved
• IS-XML Format – Finalized and approved
• ISPG – Completed edits to UATP section
• “Middleware” – Concept approved
• Invoices – Undergoing final review for
format and content
Next Steps
• Work with IATA through their development
phase
• Define opt-in/opt-out groups
• Develop “middleware” application
• Pilot submission to SIS with small group in
Q4 2011
• Fully implement Q1 2012
• Further updates via UATP Bulletins
beginning in November 2010
Questions?