ICCS - IATA Currency Clearance Service

ICCS is the global cash management service that enables airlines to centrally control and repatriate their world-wide sales funds.

ICCS benefits:

• Centralized control of global funds repatriation
• Advanced access to receivables information allowing for more effective cash planning
• Reduced time spent on international banking activities resulting in manpower savings
• Accelerated repatriation of foreign sales funds resulting in improved working capital management and reduced foreign exchange risk
• Decreased currency conversion costs gained from optimal foreign exchange rates
• Reduced banking fees and transfer charges

This is a highlight of four latest features ICCS Members can benefit from!

These features provide additional flexibility in the way airline treasuries can benefit from the service across markets.

• Dynamic Payment Schedule
• Credit Cards Sales Repatriation
• Settlement a la Carte
• Third Party Payments

These features are already available and can be requested through the IATA Customer Portal.

Dynamic Payment Schedule

ICCS payments released with value date maximized based on type of settlement instruction and considering FX and payment cut off time. This would mean within an ICCS cycle you could receive payments on multiple value dates. Reconciliation will remain easy as the ICCS reports will outline all payment details.

This is a great feature for collection of sales proceeds in USD or EUR – although not limited to these currencies!

Airline treasuries could benefit from ICCS’ consolidation for EUR payments and receive settlement same day as the BSP & CASS settlement calendar.

Credit Cards Sales Repatriation

Through the main IATA Currency Clearance Service (ICCS), IATA offers members the facility to manage the repatriation of their BSP, CASS and GSA sales proceeds.

IATA has now expanded the service to manage the monies received by your local or central acquirers as needed.  

 The following ICCS card receivables services can be offered to our members, with their assistance:

• Receiving local currency card settlements from local acquirers (banks and institutions such as American Express);
• Receiving local currency card settlements from central acquirers;
• Converting local currency card settlements in accordance to your foreign exchange needs;
• Settlement completed by ICCS to Member’s HQ and other bank accounts.

This feature relies on the member agreeing with their acquirers to settle the funds to an IATA bank account to facilitate the conversion and repatriation through ICCS. 

Third Party Payments

ICCS Members can instruct ICCS to settle part of the sales proceeds to third parties – the standard instructions can be in a fixed percentage or in fixed amount. Members can also use the ICCS Adhoc instructions to settle a specific amount to a third party in an exact cycle. This gives you even more flexibility to transfer partial local sales proceeds to cover expenses or buy local currency when needed.

Settlement a la Carte

Airlines can now combine both Local and ICCS settlement options for a given BSP/CASS operation based on their specific cash management requirements. The ICCS activation is no longer an “all or none” decision providing additional flexibility for airlines that want to keep a certain potion of their BSP/CASS settlements locally. This flexibility was not offered as a standard ICCS option in the past especially for local FX conversion markets like China or India.

Benefits

• Increased Flexibility in defining Standard Settlement Instructions
• Stronger & Centralized Cash Management
• Improved cash flow planning with a standardized remittance calendar
• Cash Flow acceleration by benefiting from both Local funding via BSP/CASS and centralized repatriation of funds via ICCS
• BSP/CASS/ICCS settlement reports adapted to enable easy reconciliation
• Benefit from ICCS’ centralized FX and cross border remittance & services in new markets where previously not possible due to a need for local funding.

Note: Change of instructions can be made on a monthly basis only

Still in doubt? IATA is offering Airlines’ regional webinar sessions dedicated to ICCS.  Those are for airlines only, upon registration. Tailoring for regional specific, an airline is invited to choose a session dedicated to its region:

Europe: 15 April 2024, 10:00 – 11:00 (GMT+1)
The Americas: 15 April 2024, 16:00 to 17:00 (GMT+1)
North Asia: 22 April 2024, 09:00 – 10:00 (GMT+1)
Africa & Middle East: 22 April 2024, 15:00 -16:00 (GMT+1)