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As guidance to travel agents on ADM resolution, the following policies should be followed:

• LATAM ADM policies are based on IATA resolution 850m and IATA resolution 890 for charge back issues.
• LATAM will issue ADM whenever an agent fails to follow fare rules, breaches a contract or makes ticketing mistakes, but not limited to; fare rules, booking policies, ticketing, reissues, refunds, tax calculation, mandatory fields, over commission, tax omission, penalties, unreported sales and charge backs.
• LATAM reserves the right to include administrative fees associated with the issuance of ADM. The fee is not refundable
• The minimum ADM amount established is 5 USD or its equivalent in the local currency, subject to adjustment due recurring irregularities.
• ADM generated when not adhering to fare rules should be calculated between the difference of the issued fare and the published applicable fare at the time of ticketing for the class used or the next higher applicable fare.
• In the United States Memo Manager is the only channel in which LATAM will accept disputes after an ADM has been uploaded. Please consider the following points:
  • In case you may need an explanation on our response to your dispute, you can reach our Sales Support team for assistance. However, if you want to respond, please do it directly through Memo Manager. 
  • LATAM account manager will no longer handle or intervene with ADM disputes.
  • The agency will have up to 2 dispute interactions in Memo Manager.
  • The agency must always include a full and clear explanation, attaching all relevant documentation. (Example: copy of waiver code, copy email with tour code, copy of commission contract, flight affected by schedule change, etc)
• Consider that LATAM Airpass (SAA): is a private fare product for non-South American residents, that it is not required the possession of a LATAM international ticket, except for some POS and classes of service. For more details on, LATAM Airpass (SAA) regulations, check directly in your distribution system with the Account Code: SAA.

For those POS or classes that require the possession of LATAM international ticket, the must comply with the following:

In the Endorsements/Restrictions field for ticket issues of LATAM Airpass (SAA) must include the correct LATAM ticket number of the Long Haul trip. Example: NONEND NONREF CHG FEE APPLIES CONX 0451233089775

Therefore, if the Long Haul ticket number is omitted or if it is incorrectly entered, it will be considered an irregularity.

In case of conjunction tickets: If the passenger’s itinerary includes more than one segment with conjunction tickets, it will suffice to insert the first ticket in the endorsement box, even though the international ticket to/from South America is joined to the next ticket.

Reservations containing more than one passenger: If LATAM Airpass (SAA) tickets are issued in association to a reservation containing more than one passenger, you may insert in the “Endorsements/Restrictions” field of each ticket of the LATAM Airpass the range of tickets of the passengers with the international ticket to/from South America. Example: NONEND NONREF CHG FEE APPLIES CONX 0453030357961-64.

If the international ticket number is not included as indicated in the ticketing procedure for this product, an ADM consisting of 40% of each segment issued under the LATAM Airpass will be charged. If the agent disputes the irregularity charge, the following scenarios may occur:

1. The agent is unable to prove the international ticket omission was due to an error and therefore the dispute is rejected.

2. The agent proves that the ticket omission was due to a mistake and therefore 85% of the ADM is reimbursed in order to offset the administrative charges resulting from the irregularity.

• ADM originated by not meeting policies, mandatory fields, commission levels, taxes, and penalties, should be issued in the equivalent amount not collected at the time of ticket issuance.
• ADM will be uploaded into BSP Link, ARC`s Memo Manager or communicated by e-mail, according to the tools available in each market.

When disputing an ADM the following requirements must be taken into consideration:

• Disputes and appeals will be conducted via the tools available to the company in each market, BSP LINK (where available) or Memo Manager and email or any other available way.
• Timing associated with issuance and disputes of ADMs are indicated in IATA resolutions mentioned above. LATAM accepts to review a paid ADM if the request is done within 60 days of issuance. Outside of the 60 days no reviews will be accepted.
• Disputes must be addressed and submitted with detailed information including supporting documentation.
• LATAM reserves the right to inhibit booking and/or ticketing ability in case of unpaid ADMs. 
• For the United States the timeline of this process will be:
  • Day 1: Issuance of ADM in ARC (Memo Manager)
  • Day 21: Due date for agency to dispute the ADM. If not disputed, LATAM Assumes that the agency accepts the charge and has until Day 89 to submit the payment.
  • Day 42: Due date for LATAM to respond to any disputes via Memo Manager. If no response is received, the agency’s dispute has been accepted by LATAM.
  • Day 63: In case LATAM rejected the dispute, the agency has a 2nd and last chance to dispute. If no is received, LATAM will assume that the agency accepts the charge.
  • Day 84: Deadline for LATAM to respond to the 2nd dispute. If no response is received, the agency’s dispute has been accepted by LATAM.
  • Day 90: ADM payment and removal deadline. If LATAM has not received the payment, the agency will lose the ability to issue LATAM tickets until such debt is cancelled. LATAM will remove ADM from Memo Manager using the option (closed by carrier) and agency must paid the outstanding balance via IAR (ARC) including as reference the ADM number or via wire transfer to the following LATAM’s bank account.
    

Agency can paid the outstanding balance via IAR (ARC) including as reference the ADM number or via wire transfer to the following LATAM’s bank account:

Agency must report the payment using the following google form click here.  LATAM will confirm payment, proceed to reinstate the ability to issue

LATAM tickets and will send an email confirmation after 4 business days of receiving the form completely filled.

This policy applies to all markets, except sales made in Brazil. The policy of penalties for irregularities (AL / ADM) of Brazil is available in ”Suporte Agencia/ Políticas locais BR / Política de ADM - Brasil”.

The following amounts of administrative fee apply to ADMs generated in certain countries, according to the following:

Administrative fees in local currency that apply for ADMs generated in the following countries of the American continent:

Objective

The procedure to be followed by LATAM for the use of credit cards of agencies without consent, which applies to LATAM Airlines Group companies (hereinafter jointly, "LATAM") is presented below. In this sense, LATAM refers to LATAM Airlines Group SA ("LA") and its affiliated carriers, being: Regional Airways, Aires S.A ("4C"), Latam Airlines Peru S.A. ("LP"), LATAM-AIRLINES ECUADOR. ("XL"), Lan Argentina S.A. ("4M"), and Tam Linhas Aereas S.A. ("JJ").

Reach

The present procedure applies to the LATAM companies mentioned above.

References

Resolution 890, issued by IATA that establishes the rules for the sale of customer cards (the "IATA Resolution 890"), is considered the basis for the construction and application of the described procedures.

Development

LATAM does not authorize the use of travel agency credit cards (whether the issuing agency / IATA or the client agency), employees', owners', or travel agency executives' cards as substitutes for the passenger's credit card or the selected form of payment by the passenger, unless there is prior express written consent from LATAM. This consent must be requested and granted clearly and unequivocally before using the travel agency's credit card or its representatives as a means of payment for LATAM services. Requests must be made to the LATAM Sales Support Executive.

All the terms defined below in IATA Resolution 890 are appropriate to this procedure. Without limiting the foregoing, LATAM will not copy the complete resolution, but only the relevant and appropriate paragraph for the purposes of this document. 

IATA Resolution 890, section 3,4 of Acceptance of Customer Cards

“3.4 This Resolution gives authority to accept only a Customer Card when using the card acceptance merchant agreement of the Member/Airline to collect payment for the sale of passenger air transportation and Ancillary Services. The Agent may not accept any other card or payment method that uses the Member/Airline’ card acceptance merchant agreement, including any card issued in the name of the Agent or any Person permitted to act on behalf of the Agent, unless specifically authorized by such Member/Airline. A failure to comply with the present paragraph 3.4 will be undertaken under the sole responsibility and liability of the Agent toward the Member/Airline concerned.”

To avoid these types of irregularities, we recommend the following:

• Do not change the card that the client originally used to make payments.
• In case of requiring an exception or authorization, it must have requested the express authorization of LATAM for the use of cards. The requirement can be reasonably approved or rejected.
• Exceptions may be authorized by LATAM in general or specific manner.
• The authorizations of the general exceptions will be authorized when the alternative payment method requested by the agency has a cost equal to or less than the cost of the payment method of LATAM. On the other hand, the authorizations of the specific exceptions will be evaluated case-by-case by LATAM. 

Audit effects:

If LATAM detects an irregularity described above, penalties or Agent Debit Memos ("ADMs") may be generated to travel agencies for an amount equivalent to 2% of the amount paid with credit card.

For the countries where, according to the current legislation and applicable to this effect, this fine or ADM are not applicable, they will not be imposed on the travel agencies.

Colombia and Brazil are exempt from the payment of the aforementioned penalties or ADMs.