Request for Clearance

While clearance information can be exchanged during shopping and Clearance Data can be agreed upon at the time of payment commitment the Settlement with Orders process is still initiated with the request for clearance send to the Clearance Manager by the supplier, i.e. the carrier. The request uses the payment information from the payment commitment in the underlining agreement or the agreed upon Clearance Data. Either way, the following has been agreed:

The payment method (for example EasyPay or BSP)
The amount with its corresponding currency to be cleared, which is the NetClearanceAmount of the “Clearance Data” associated with the selected Payment Method in the Payment Processing Summary.
Agreement and Commitment identifiers and other relevant information.

All applicable charges, commissions, fees and taxes including VAT are available in detail in the Order when it is created but are not needed for the Settlement process – the Request for Clearance is only interested in the Net Clearance Amount that has to be cleared between two parties. It is important to note that at payment commitment time there is full agreement on Net Clearance Amount and payment method.

Following are possible cases:

1. Request for Clearance with method of payment Settlement Plan without commission and according to the Clearance Schedule.

Customer is seeking return flight from Geneva to London in economy cabin and no ancillary services. Using the “Clearance Criteria” in the shopping request Agent AGT indicates that funds could be cleared by means of the SwO Standard and Process. Airline AIR is capable to clear funds by means of the SwO Standard and Process and confirms that using the “Clearance Method” in the offer response.

Agent AGT asks carrier AIR to create the order and provides payment details including information about the clearance of funds – indicates that it is the Payer in the clearance process and provides the ‘Net Clearance Amount’, which equals the payment amount because payment method is Settlement Plan and there is no commission.

Carrier AIR validates the clearance related information provided by agent AGT adds the Clearance Identifier and delivers the full information of the clearance back to agent AGT. Now airline AIR can send the “Clearance” to the Clearance Manager, who will validate it and will execute this request for clearance.

2. Request for Clearance with method of payment IATA EasyPay without commission.

Customer is seeking return flight from Geneva to London in economy cabin and no ancillary services. Agent AGT is accredited with no Cash Facility and therefore only payment method “EasyPay” can be used. Agent AGT would like to create the order, to defer the payment and to clear the funds using the SwO Standard and Process. Airline AIR is capable to clear funds suing the SwO Standard and Process and confirms that for the offer it has made it can be paid using payment method “EasyPay” and the funds for this payment can be cleared using the SwO Standard and Process.

Agent AGT asks carrier AIR to create the order but defers the payment. However, agent AGT suggests that the payment, when made, will be done using the payment method “EasyPay” and funds will be cleared using the SwO Standard and Process. With this information carrier AIR can return the expected ‘Net Clearance Amount’ for the order it has created given that at the time of payment, or any time before the payment, agent AGT does not change the order. Agent AGT can use this ‘Net Clearance Amount’ when paying for the order provided nothing has changed in the order.

Agent AGT pays the order that has been created including information about the clearance of funds – indicating that it is the Payer in the clearance process and provides the ‘Net Clearance Amount’ that was given by the airline.

Carrier AIR validates the payment information provided including the clearance related information. Once the EasyPay vendor confirms that funds have been blocked carrier AIR adds ‘Clearance ID’ and the payment commitment time to the clearance information. Now carrier can forward the clearance information to the Clearance Manager, who will validate it and will execute this request for clearance. Carrier AIR will add the IATA EasyPay account number provided by agent AGT and the approval code received from the EasyPay vendor to the request for clearance that will be sent to the Clearance Manager.

3. Payment completed on secure payment page hosted by payment service provider with commission cleared using SwO Standard and Process.

Customer is seeking return flight from Geneva to London in economy cabin and no ancillary services. Customer would like to pay with credit card and agent AGT indicates this to the carrier. Moreover, agent AGT indicates that the SwO Standard and Process is to be used to clear the payment of the commission. Airline AIR is capable to clear funds using the SwO Standard and Process but would have to redirect the credit card payment processing to the secure payment page hosted by its payment service provider.

Carrier AIR confirms that for the offer it has made it can accept payment with credit card but only by redirecting the payment process to the secure payment page hosted by its payment service provider. In addition, carrier AIR confirms that for that supported payment it can clear funds related to commission using the SwO Standard and Process.

Agent AGT requests carrier AIR to create the order and provides payment amount to initiate the payment. Customer has to make the payment within 24 hours. Current date is 12th of January 2021 and time is 13:15. Agent AGT, also, provides clearance related information about the clearance of the commission. Agent AGT in its role of the ‘Payee’ of the Clearance prepares the clearance related information including the Net Clearance Amount, which is equal to the commission.

Carrier AIR confirms that order has been created and provides the URI where customer can make the payment. Customer has to complete the payment until 13:15 on the 13th of January 2021.

Customer completes the payment on the 13th of January 2021 at 11:25 and carrier AIR informs agent AGT payment has been successful and the ‘Payment Commitment Date is 13-Jan-2021|11h25m’, which is also the ‘Payment Commitment Date’ used in the clearance information. Carrier AIR adds the ‘Clearing ID’ and returns the complete clearance information to agent AGT. Carrier AIR is in the role of the ‘Payer’ with regards to the clearance information. Now the clearance information is ready to be sent to the Clearance Manager, who will execute the requested clearing of funds.

4. Request for Clearance with method of payment Settlement Plan with Remittance Date not according to the Clearance Schedule.

Agent CORPORATE works with large corporate clients and has secured special deals with few airlines to remit on dates that are outside of the “Clearing Schedule”. One such deal has been signed with airline BUSINESS, where for large corporate clients the agent CORPORATE can remit 45 days after the sale. Usually, the Clearance Manager requires that agent CORPORATE remits no later than 7 days after the payment commitment date.

Business traveller asks agent CORPORATE to arrange flight for her from Geneva to Moscow. Following the corporate policy, the agent requests that offers are with service in economy class only. Airline BUSINESS has the best offer and agent CORPORATE requests that order is created. The order has been completed and payment has been committed.

Timeline: Shopping takes place on 3rd of December 2020. Payment Commitment Date is 7th of December 2020. Traveller flies outbound on 10th of December 2020 and inbound on 11th of December 2020.

Steps:

When shopping for flights agent CORPORATE indicates Remittance Date for the clearance of funds with airline BUSINESS and the date is 15th of January * This is for payment method Settlement Plan.
Airline BUSINESS verifies that the requested remittance date complies with the agreement in place with agent CORPORATE. The date complies and the airline returns information about payment and clearance that it can support:
a) airline BUSINESS can support payment method Settlement Plan and for clearance of the funds within the usual 7 days using the SwO Standard and Process it offers additional commission for the sale
b) airline BUSINESS can support payment method Settlement Plan and for clearance of the funds on the preferred by the agent CORPORATE Remittance Date 15-Jan-2021 it does not offer additional commission for the sale
Agent CORPORATE requests airline BUSINESS to create an order with confirmed payment and clearance information where Remittance Date is the preferred 15-Jan-2021 and agent AGT is the Payer.
Airline BUSINESS verifies the “Clearance Data” and adds to it the ‘Clearance Identifier’ and the ‘Payment Commitment Date and Time’. The airline BUSINESS confirms the clearance information in its role as Payee.
Airline AIR sends a clearance request to the Clearance Manager

In all of the above cases the customer has purchased a service and the retailer (the Agent) has confirmed the Order. Furthermore, the Retailer has committed payment, by providing payment information including an Amount and Payment Method to the supplier (the Airline). The Agent and the Airline have completed and signed the Clearance Data at the time of payment commitment. Therefore the supplier (the airline) will use the “Clearance Data” that was agreed upon with the retailer (the agent) in the request for clearance send to the Clearance Manager to initiate the clearance of funds.

The SwO Process for all of the above cases will be:

Airline sends ClearanceRQ message to the Clearance Manager including the Clearance Data with its unique ClearanceID
After successful sanity check and validation, the Clearance Manager acknowledges the receipt of the ClearanceRQ message with ClearanceRS message. The ClearanceRS message includes the Remittance Date “RD” and the Settlement Date “SD” as per Clearance Schedule, and the Clearance Status Code “Accepted”.
Clearance Manager sends ClearanceNotif message to the Agent. The ClearanceNotif message includes the Remittance Date “RD” and the Settlement Date “SD” as per Clearance Schedule, and the Clearance Status Code “Accepted”.
Following the Clearance Schedule on Clearing Notification Delivery Deadline Date the Clearance Manager sends the ClearingNotif message to the Remittance Payer. The ClearingNotif message is identified with its ClearingID and includes the Total Amount that must be remitted by the Remittance Payer and the list of Clearances that have been aggregated for this ClearingNotif message.
On Remittance Date the Remittance Payer orders payment to the Clearance Manager’s bank account for funds equivalent to the Total Amount in the ClearingNotif message identified with its ClearingID. The ClearingID is included in the remarks of the bank transfer order.
On Settlement Date “SD” the Settlement Manger sends ClearingNotif message, that is identified with its ClearingID. The ClearingNotif message includes the Total Amount being settled to the Airline (or Settlement Payee) and the list of Clearances that have been aggregated for this ClearingNotif. The Clearance Manager also orders bank transfer to the ORA bank account for the Total Amount in the ClearingNotif message and includes in the remarks the ClearingID.

5. Request for Clearance with method of payment EasyPay with commission but Clearance Data has not been agreed and signed during payment commitment.

Agent has completed a sale and uses IATA EasyPay as Payment Method. The agent receives 10% commission for the sale. The Agent has committed the payment to ORA with payment information provided in the Order Create Request but Clearance Data has not been agreed upon and singed desiring the payment commitment.

a) Preconditions

Airline has received ApprovalCode for the EasyPay payment. The authorization is for the NetClearanceAmount that is net of commission. Airline has received the EasyPay AccountNumber from the agent as well.

b) SwO Process

Airline sends one Clearance to the Clearance Manager where the NetClearanceAmount for example is CHF369 – EasyPay payment minus applicable commissions (CHF410-CHF41=CHF369)
After successful sanity check and validation, the Clearance Manager acknowledges the receipt of the ClearanceRQ message with ClearanceRS message. The ClearanceRS message includes the Remittance Date “RD” and the Settlement Date “SD” as per Clearance Schedule, and the Clearance Status Code “Accepted”.
Clearance Manager sends ClearanceNotif message to the Agent. The ClearanceNotif message includes the Remittance Date “RD” and the Settlement Date “SD” as per Clearance Schedule, and the Clearance Status Code “Accepted”.
The Clearance Manager requests transfer of funds form the EasyPay vendor providing the EasyPay AccountNumber and the Approval Code.
Within 24 hours the Clearance Manager receives the funds from the EasyPay vendor.
Once the Clearance Manager receives the funds from the EasyPay vendor and following the Clearance Schedule on Clearing Notification Delivery Deadline Date the Clearance Manager sends the ClearingNotif message to the Remittance Payer. The ClearingNotif message is identified with its ClearingID and includes the Clearance with payment method EasyPay for information only. The Net Clearance Amount of the clearance with payment method EasyPay is not included in the Total Amount that must be remitted by the Remittance Payer.
On Settlement Date “SD” the Clearance Manger sends ClearingNotif message, that is identified with its ClearingID. The ClearingNotif message includes the Total Amount being settled to ORA (or Settlement Payee) and the list of Clearances that have been aggregated for this ClearingNotif. The Clearance Manager also orders bank transfer to the ORA bank account for the Total Amount in the ClearingNotif message and includes in the remarks the ClearingID.