Visa Works with Airlines to Clear Up Credit Card Charges

April 8, 2015, Written By Justin Hefner
air hostess at work

For more than a year, Visa has been working closely with major airlines in the United States to create an enhanced categorization system that would better identify in-flight credit card transactions. The company has announced those charges are now officially in place on a global scale, making it easier for cardholders to understand the charges on their statements.

Now that airlines accept credit card payments during flights, more consumers are paying for food, drinks, seat upgrades, baggage fees and Wi-Fi on their cards. This ancillary purchases now make up roughly half of all transactions made by airline passengers. Non-ticket credit card charges have increased by nearly 400% since 2008, and now Visa has a way to identify them on your bills.

To better understand the value of the new categorization system, Visa’s head of merchant solutions, Ramon Martin, said, “Consumers can more easily understand charges on their bill. For example, what previously may have read, ‘Airline Air 0014567891014’ would now read ‘Airline Air Wi-Fi.'”

In the past, most airline-based transactions were listed as if they were directly associated with ticket purchases, making it difficult for business owners and employees to separate their expenses for taxation purchases. The new system clarifies this, making it easier for these individuals to manage their finances and make the necessary reports to the IRS or to their employers.

The new system is only in effect for Visa at this time, but MasterCard is working on a similar program.

The information contained within this article was accurate as of April 8, 2015. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.