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LATAM TRADE

Sales | ADM Policy

    Airline's documents uploaded via this facility in no way represent an opinion or policy of BSPLink Management or of IATA.

    The information contained in these documents is provided by the Airline named and for the benefit of BSPLink users. IATA accepts no liability for any misrepresentation contained in these documents the accuracy of the content and/or the use of the information contained in the document.

    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.
    • Requests to review ADMs of sales made as of January 1, 2019 in United States, must be channeled via memo manager ARC. If the tour code exists but has not been entered or has been entered with errors. The ADM and the tour code provided by LATAM must be provided. LATAM will verify whether the tour code was created appropriately (date of business creation, correct route, etc.). In case the Agency has failed to enter this number or has entered it erroneously, the ADM will be reduced by 85% and the agent will have to pay 15% without appeal. If the 15% is less than USD 5.00, the minimum charge will be USD 5.00. All Tour Codes provided by LATAM are entered in the reservation by means of a Remark QQ that contains the business number.
    • Consider that LATAM Airpass (SAA) ticket issues must include in the “Endorsements/Restrictions” field the correct number of the international LATAM ticket to or from South America. Example: NONEND NONREF CHG FEE APPLIES CONX 0451233089775; therefore if the international LATAM ticket is not included or if a wrong number is inserted, 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. 

    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:

    Point of Sale (POS)

    Administrative fees in local currency

    Bolivia (BO)

    170 BOB / 25 USD

    Costa Rica (CR)

    12.000 CRC

    Mexico (MX)

    300 MXN

    Peru (PE)

    25 USD

    Uruguay (UY)

    25 USD

     

    Administrative fees in local currency that apply for ADMs generated in the following countries of Europe, Middle East and Africa:

    Point of Sale (POS)

    Administrative fees in local currency

    United Arab Emirates (AE)

    100 AED

    Austria (AT)

    20 EUR

    Belgium (BE)

    20 EUR

    Bulgaria (BG)

    40 BGN

    Bahrain (BH)

    10 BHD

    Cyprus (CY)

    20 EUR

    Czech Republic (CZ)

    500 CZK

    Switzerland (CH)

    25 CHF

    Germany (DE)

    10 EUR

    Denmark (DK)

    150 DKK

    Estonia (EE)

    20 EUR

    Egypt (EG)

    180 EGP

    Spain (ES)

    20 EUR

    Finland (FI)

    20 EUR

    France (FR)

    15EUR

    Great Britain (GB)

    25 GBP

    Greece (GR)

    20 EUR

    Croatia (HR)

    150 HRK

    Hungary (HU)

    6,000 HUF

    Ireland (IE)

    25 EUR

    Israel (IL)

    25 USD

    Iceland (IS)

    3000 ISK

    Italy (IT)

    25 EUR

    Jordan (JO)

    20 JOD

    Lebanon (LB)

    25 USD

    Lithuania (LT)

    20 EUR

    Latvia (LV)

    20 EUR

    The Netherlands (NL)

    20 EUR

    Norway (NO)

    150 NOK

    Oman (OM)

    10 OMR

    Poland (PL)

    80 PLN

    Portugal (PT)

    20 EUR

    Qatar (QA)

    100 QAR

    Romania (RO)

    90 RON

    Russia (RU)

    800 RUB

    Sweden (SE)

    175 SEK

    Slovakia (SK)

    20 EUR

    Turkey (TR)

    50 TRY

    South Africa (ZA)

    250 ZAR

     

    Administrative fees in local currency that apply for ADMs generated in Asia and Oceania:

    Point of Sale (POS)

    Administrative fees in local currency

    Australia (AU)

    20 AUD

    Philippines (PH)

    900PHP

    Hong-Kong (HK)

    150 HKD

    India (IN)

    1200 INR

    Indonesia (ID-II)

    230 IDR

    Japan (JP)

    2.000 JPY

    South Korea (KR)

    21.000 KRW

    Malaysia (MY)

    60 MYR

    New Zealand (NZ)

    25 NZD

    French Polynesia (PF)

    1700 XPF

    Singapore (SG)

    25 SGD

    Thailand (TH)

    650 THB

    Taiwan (TW)

    600 TWD

     

    • The administrative fee is not refundable, except when an agency disputes a charge for an error attributable to LATAM.
    • For countries where there is a sales tax (IGV, etc.) the cost of the tax is included in the indicated amount.
    • Data omissions in the issuance of an EMD or ticket that consequently generate ADMs are subject to an administrative fee, even if the amount of the irregularity comes under dispute later. Subsequently this means that even if the ADM is reverted, the administrative fee is still applicable.

    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 instead of the customer's credit card or the payment methods chosen by the customer, of credit cards of travel agencies, owners of travel agencies and/or travel agencies executives, without first counting with the express and written consent of LATAM. 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 4.2% 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.