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In accordance with IATA Resolution 850m, the Virgin Atlantic Airways Ltd Global BSP Agency Debit Memo Policy clarifies the objectives of the Sales Audit process and the circumstances under which an Agency Debit Memo (“ADM”) may be raised. It is the responsibility of the agents to ensure all tickets are issued in accordance with all VS policies, even if the GDS enables it.

The Sales /Refund Audit Process is intended to ensure the Travel Agent (“the Agent”) complies fully with fare rules, industry standards and Virgin Atlantic Airways Ltd (“VS”) policies.

The Sales /Refund Audit Process recovers any loss incurred to VS by raising an ADM. It also highlights the causes resulting in an ADM to the Agent, including incorrect ticketing and/or incorrect or incomplete information being available at the time of audit, to ensure these errors are not repeated.

VS will manage high numbers or repetition of violations directly with the Agent and reserves the right to inhibit their booking and ticketing capabilities on VS operated or marketed services. 

 

 

1.1        ADMs are a legitimate accounting tool and will be issued to notify the Agent that, unless justification exists to the contrary, the Agent owes VS the amount shown on the ADM, for the reasons indicated.

1.2       VS will raise ADMs to collect amounts, or adjust Agent transactions, related to the issue and use of VS traffic documents by or at the request of the Agent, regardless of which airlines are included in the itinerary.

1.3       VS will raise ADMs to collect amounts for use of VS inventory where a ticket has not been issued or has been issued but not reported through Billing and Settlement Plan (“BSP”).

1.4 Further alternative uses of ADMs may exist, including, but not limited to, charges not directly associated with the issue of a traffic document, and these will be communicated by VS to the Agent.

1.5        VS may include multiple transactions in one ADM, if the reason and charge for each transaction is the same.

1.6        VS may raise more than one ADM in relation to the same original traffic document if different reasons for adjustment exist.

1.7        VS reserves the right to raise ADMs of any value, with no minimum.

1.8 If a fare, taxes, fees, or charges are collected incorrectly, VS will raise an ADM to recover any underpayment

in full.

1.9         The Agent will not be eligible for commission on underpaid amounts collected by ADM.

             

1.9.1       A non-refundable penalty charge will be included in ADMs raised for adjustments pursuant to 1.9.

1.10       If VS raises an ADM for non-compliance with fare rules, the general principle is to adjust the original fare collected to the next applicable fare meeting all booking criteria and fare rules. In the event where the general principle cannot be applied, VS reserves the right to raise an ADM using alternative principles to achieve the same result.

1.11             If tickets are issued incorrectly, VS may raise an ADM for a fixed penalty charge.

1.12     A Tariff of ADM Charges will be available to the Agent.

1.13      The ADM will specify full details of any fare adjustment or penalty charge being levied and, where appropriate, supporting documentation will be provided.

1.14      The ADM will include full contact details the Agent can use to discuss the ADM.

1.15      ADMs will be raised through the BSP within nine months of the final travel date or, when the final travel date cannot be established, before the expiry date of the travel document.

1.16      Any debit action beyond the time limits detailed in paragraph 1.15 will be managed directly between VS and the Agent. ADMs will only be issued through the BSP process if agreed in writing between VS and the Agent. 

2.1        An ADM to adjust a refund will only be processed through the BSP within nine months of the date on which the Agent has processed the refund2.2 Any adjustment to a refund more than nine months after the date on which the Agent has processed the refund will be managed directly between VS and the Agent. ADMs will only be issued through the BSP process if agreed in writing between VS and The Agent.

2.3        Commission will be recalculated on tickets submitted for refund and an ADM will be raised to recover             overpaid commission from the Agent where appropriate.

2.4        Refunds are not permitted outside ticket validity, as defined in the IATA General Conditions of Carriage

2.5 Original Forms of Payment: Refunds are issued back to the same form of payment that was used for the original ticket purchase. For example, if the ticket was purchased with cash, the refund will be issued in cash. If it was purchased with a credit card, the refund will be credited back to the same credit card. Multiple or Split Forms of Payment: If the ticket was purchased using multiple or split forms of payment (for example, part cash and part credit card), the refund should correspond to the amounts originally collected from each form of payment. 

 The policy ensures that passengers receive their refunds in a fair and consistent manner, reflecting the original payment method and currency used for the ticket purchase. 

3.1             If the Agent considers an ADM is invalid, the Agent should raise a dispute against the ADM.

3.2        The Agent should provide specific and relevant details of the dispute and, where appropriate, supporting documentation.

3.3        The Agent should include full contact details within the dispute.

 

Via BSP Link

3.4         VS will allow the Agent a minimum amount of time to review an ADM, in accordance with local BSP procedures, prior to submitting an ADM to BSP for processing. If necessary, the Agent should dispute the ADM via BSPlink within this review period.

3.5          If VS agrees an ADM is not valid, it will not be submitted to BSP for processing and will be cancelled by VS.

3.6       If VS rejects a dispute, VS will send an explanation for the rejection to the Agent and will allow a time period within which the Agent should provide new or additional information to support the dispute.

3.6.1   If VS does not receive further information within this time period, the ADM will be submitted to BSP for processing.

3.6.2    VS will review any additional supporting documentation provided and communicate a decision on the dispute within 60 days of the information being received.

3.6.3     If VS agrees the dispute is valid, BSPlink dispute function will be approved or modified or an Agency Credit Memo (“ACM”) may be raised.

3.6.4     If VS maintains the dispute is not valid, VS will endeavor to arrive at an agreement with the Agent for resolution of the dispute.

Directly between the Agent and VS

3.7      If the Agent wishes to dispute the ADM after it has been included in the BSP settlement, they should contact VS in writing within 6 months of the issue date of the ADM, using the contact details included in the ADM. Disputes will not be considered after this time.

3.7.1   The Agent will receive an automated response confirming VS has received the dispute.

3.7.2   VS will investigate and communicate a decision on the dispute, or request additional information from the Agent, within 60 days of the dispute being received.

3.7.3   If VS agrees the dispute is valid, an ACM may be raised.

3.7.4   If VS maintains the dispute is not valid, VS will endeavor to arrive at an agreement with the Agent for resolution of the dispute.

This Section applies only to bookings created and ticketed via VS NDC channels. All other bookings remain subject to the standard provisions of this Global ADM Policy

 

4.1 VS has implemented enhanced technical and procedural controls within its New Distribution Capability booking environment. These controls are designed to minimise the likelihood of errors that may otherwise result in the issuance of an ADM.

 

4.2 In recognition of these safeguards, VS will not issue ADMs for bookings created and ticketed through VS NDC channels, except in the specific circumstances described in 4.3.

 

4.3 Exceptions – ADMs may be issued for NDC bookings for the following reasons:

 

(a) Fraudulent Activity

Where there is evidence of fraud, including but not limited to the manipulation of fare construction, booking or ticketing data; use of stolen or unauthorised payment methods; false representation of passenger identity or status; chargebacks received arising from unauthorised transactions; or any other act undertaken with the intent to obtain improper advantage.

 

(b) Non-Compliance with Legal, Regulatory or Tax Obligations

Where bookings or tickets fail to comply with applicable legal, regulatory, or tax requirements. This includes, but is not limited to, incorrect application or omission of mandatory passenger information, failure to collect or report applicable taxes, fees or surcharges, or breach of government or authority-mandated fare conditions.

 

(c) Misapplication of Fares and Ticket Types

Where special fares are misapplied or issued without the required eligibility. This includes, but is not limited to, the sale of inclusive tour fares without a qualifying package element, misuse of corporate or negotiated fares, or issuance of student, military, or concessionary fares without valid eligibility.

 

(d) Other Breaches of Virgin Atlantic Booking and Ticketing Policies

Where booking or ticketing activity is not in accordance with Virgin Atlantic’s published Booking or Ticketing policies. This includes, but is not limited to, failure to respect published ticketing time limits, failure to cancel passive or inactive segments, incorrect use of special service or other remarks, artificial itinerary construction or manipulation of the Point of Commencement (POC) intended to influence pricing, surcharges, or availability or any other conduct contrary to Virgin Atlantic’s established distribution rules and procedures. These policies can be found on our Partner Hub site.

 

(e) Failure to Comply with Fare Rules

Where any applicable fare rule is not respected. This includes, but is not limited to, incorrect fare construction, breach of advance purchase or ticketing deadlines, non-observance of minimum or maximum stay requirements, improper combinability, violation of refund or reissue conditions, failure to honour endorsement or routing restrictions, and any other non-compliance with fare conditions applicable to the ticket issued. 

The table below describes situations in which an ADM may be raised, as well as the penalty charges for Global points of sale. Please note that the reasons for raising an ADM are not limited to the scenarios described below.

 

Where GBP/EUR/USD is not the local currency, the fee will be converted to match BSP local reported currency. 

ADM Reason  Description Penalties due

ADM charge*

 

(per ADM unless otherwise     specified) 
Incorrect fare Incorrect fare, based on the applicable fare for the ticketed journey, has been remitted 

Under collection of fare +

ADM Charge 

 £30 / €30 / $50
Incorrect taxes, fees or surcharges Incorrect taxes, fees or surcharges, remitted based on the applicable charges for the ticketed journey.  Under collection of taxes, fees and charges  + ADM Charge £30 / €30 / $50
Incorrect tax, fee or surcharge code ticketed, but correct amount collected  Under collection of taxes, fees and charges  + ADM Charge £30 / €30 / $50
Incorrect change/ penalty fees The incorrect change/penalty fee remitted, based on the change/s made to the ticketed journey  Under collection of applicable change/penalty + ADM Charge  £30 / €30 / $50
Incorrect Fare Basis  The ticketed Fare Basis does not match the ticketed fare 

Under Collection of fare (if

applicable) + ADM Charge per ticket 

 £30 / €30 / $50
Incorrect commission  Commission has been overclaimed  Over Claim + ADM Charge £30 / €30 / $50

Incorrect/Missing

Ticket Designator/

Dealcode 

 Incorrect/missing ticket designator or Dealcode not displayed on the ticket 

Under Collection of fare (if

applicable) + ADM Charge per ticket 

 £30 / €30 / $50
    Penalty charge applied by cabin:
Ticketing Time Limit (TTL) violation  The ticket issue date is later than the TTL filed in the applicable fare rule/contract permits, including as a result of VS sectors being churned (sectors cancelled and rebooked for the same passenger, on same flight, in same booking class or lower).  Upper £250 /
€250/ $375
Premium £100 / €100 / $150
Economy £50 / €50 / $75
Unticketed no- shows  Fare type exempt from TTL/Agent action causes automated system to exempt booking from a TTL: tickets not issued/VS segments not cancelled by Agent prior to departure  Upper £250 / €250 / $375
Premium £100 / €100 / $150
Economy £50 / €50 / $75
Class abuse

Booked/ticketed booking classes do not match

 Under Collection of fare (if applicable) + ADM Charge £30 / 30 / $50
Equivalent fare paid Exchange rate manipulated; Incorrect fare remitted  Under Collection of fare (if applicable) + ADM Charge £30 / €30 / $50
Invalid use of child fare 

Child/Adult passengers booked separately, no cross reference to

adult PNR on child tickets/in child

PNR 

 Under Collection of fare (if applicable) + ADM Charge £30 / €30 / $50

Invalid use of VS

Carrier Identification

Plate 

 VS CIP used, no VS segments in ticketed itinerary   Under Collection of fare (if applicable) + ADM Charge £30 / €30 / $50
VS CIP used; VS not listed as a plating carrier in the applicable fare rule  Under Collection of fare (if applicable) + ADM Charge  £30 / €30 / $50
Incorrect form of payment/ refund 

Form of payment not permitted/not accepted by VS under terms of applicable contract

(e.g. credit card payment)

 

Corporate Credit Card 

Collection of fare and all applicable taxes, fees and

surcharges + ADM Charge

 

Non compliance Collection of fare and all applicable taxes, fees and surcharges 

£50 / €50 / $75

 

1.5%
Late/unreported sales Sale not reported via BSP/sale reported in a subsequent billing period Collection of fare and all applicable taxes, fees, and surcharges +ADM Charge  £30 / €30 / $50
Incorrect Refund  Incorrect refund calculated, based on applicable fare rule  Collection of fare and all applicable taxes, fees, and surcharges + ADM Charge  £30 / €30 / $50
Name Correction 

No SSR information within booking

 ADM Charge £30 / €30 / $50
Complete name amendment Collection of fare minus refund conditions on original ticket and tax  n/a

Inventory

circumnavigation  

(This can include, but is not limited to)

a)            Break married segment logic

b)            Adding journeys to enhance

availability, which are then subsequently removed 

c)            To obtain inventory for ticket sales, which an agent does not intend to offer for the passenger's actual itinerary

d)            To gain access to lower fares or inventory

e)            Manipulation or artificial construction of the Point of Commencement (POC) or itinerary sequencing to influence pricing, surcharges, or inventory availability.

 

ADM charge or difference in fare whichever is greater- per passenger/per sector 


 £500 / €500 / $600

Online

Distribution

Violation 

 Redistribution of EVJ content without Airline Permission  

ADM Charge

– per ticket 

 £4000 / €4000 / $5000 
Churning  Repetitive booking and cancelling of VS inventory.  £1.00 per segment + ADM Charge

 £30 / €30 / $50
HX Segments  All inactive segments must be removed from the booking at least 72hrs before departure. 

Segment Fee

+ ADM

Charge  

 £30 / €30 / $50
Hidden City Ticketing   The purchase or usage of a fare from          a            point       before    the passenger's       actual     origin and/or to a point beyond the passenger's actual destination.   ADM charge or difference in fare whichever is greater - per ticket £500 / €500 / $600

Throw Away

Ticketing  

 We do not permit the booking and/or issuance and/or use of connecting and/or round-trip tickets for the purpose of oneway or partial travel only. ADM charge or difference in fare whichever is greater-- per ticket  £500/ €500/$600

Refund 

 

 Refund not returned to passenger within specified timelines – VS fined by governing bodies (DOT)  Collection of fine  

Fine Amount

 

*per ticket unless otherwise specified

1)     All information must be available at the time of Audit to avoid an ADM being raised

2)     If the Agent provides all missing information after the ADM has been raised in BSPLink, the ADM will be reduced to the applicable penalty charge

3)     If any under collection or overclaim is less than GBP10.00 EUR10.00 & USD15.00, ADM penalty charge will apply only if total ADM value is over the ADM penalty charge.

4)     If any under collection or overclaim is less than the penalty charge and more than above point 3, the penalty charge will be matched.

5)     If the ADM charges relate to a GDS error, the Agent should seek reimbursement of associated costs directly from the GDS

6)     VS reserves the right to vary its Global BSP Agency Debit Memo Policy and Tariff of Charges with a minimum of 30 days written notice

7)     Pricing or ticketing outcomes generated by a booking or pricing system do not override the Agent’s responsibility to comply with Virgin Atlantic policies

8)     If you have any queries relating to this communication, please contact Sales Support – sales.support@fly.virgin.com or  via our Partner Hub