​​​​New Generation of IATA Settlement Systems​

NewGen ISS is a program launched by IATA to deliver faster, safer and more cost effective and relevant financial settlement services and solutions to airlines and travel agents that rely on the IATA Settlement Systems (ISS). It will do so by putting our customers at the heart of our operation.​

For airlines, NewGen ISS means faster settlement, safer funds and a lower cost of distribution. For travel agents, NewGen ISS will offer more personalized products and services, enhanced customer support and more cost-effective solutions. With the introduction of NewGen ISS, IATA will also provide an enhanced 24/7 customer support to better address the needs of airlines and agents.

NewGen ISS will deliver:

• 3 levels of travel agent accreditation, enabling agents to choose the one that best fits their business model
• A Remittance Holding Capacity that will ensure a safer selling process
• A Global Default Insurance product that will offer a cheaper financial security option to travel agents and help to reduce default losses for airlines
• IATA EasyPay, a secure and cost-effective pay-as-you-go solution

Next Steps

Accredited travel agents in a BSP (Billing and Settlement Plan) benefit from selling international tickets to a given market on behalf of the participating airlines and access to a single standard interface for invoicing and payment to carriers. However the main rules of the BSP were established decades ago, using a one-size-fits-all approach, and no longer address the different needs, concerns and risks faced by travel agents today.

NewGen ISS is proposing to move from the current one-size fits all accreditation and to offer greater flexibility through the introduction of 3 models of accreditation. Agents will be able to choose the model most applicable to their business, as well as to convert across models as their business evolves.
The proposed models are as follows:

• Multi-Country Accreditation: a “one-stop-shop” accreditation for agents with operations in multiple BSPs. Multi-Country agents will meet a single global set of requirements and criteria, established in Resolution, and will be able to accredit all their locations worldwide under a single Passenger Sales Agency Agreement
• Standard Accreditation: This model corresponds most closely to the current accreditation, and is for agents operating in a single country. In addition to the accreditation requirements established in Resolution, agents under this model will be subject to those requirements established in the Local Financial Criteria of the BSPs in which they operate, including annual financial reviews. These agents will have access to all the BSP forms of payment, cash, credit card and IATA EasyPay
• Standard Accreditation with No Cash Facility: For agents that do not require a cash facility in the BSP, i.e. access to cash sales, this model will offer an easier accreditation process as there will be limited financial risk

• Voluntary – This new payment method will be available to all agents, but it will be up to each agent to decide whether or not to use it.  It will not replace existing payment methods
• Secure – To use IATA EasyPay, agents will fund their EasyPay account.  At the time of ticket issuance, the IATA EasyPay system will first verify that funds are available in the account.  If yes, the system will generate an authorization and the related funds will be blocked. Payment is final upon authorization, and for airlines there is no risk of chargebacks. Agents will nonetheless be able to void and refund their IATA Easypay transactions as per usual through the BSP
• Fast – IATA will settle the IATA EasyPay monies to the airlines using the existing BSP processes, with monies expected to reach the airlines within 48 to 72 hours following ticket issuance
• Economical - With a low cost per transaction, IATA EasyPay will be more cost effective for airlines than credit card transactions
• Flexible - As a secure form of payment, EasyPay transactions will not be part of an Agent’s cash sales at risk. This will offer Agents a means to lower their financial security amounts with IATA, and to issue transactions which are not included in their cash issuance capacity 

IATA EasyPay is a key component of NewGen ISS, as it will enable the introduction of new accreditation models and the new risk management framework.

Resources

Learn more about NewGen ISS and find answers to some key questions regarding the program.

• NewGen ISS Fact Sheet (pdf)
• NewGen ISS Overview (pdf)
• NewGen ISS FAQs (pdf)

For additional information contact us