Settlement

The Clearance Manager performs the settlement, i.e. funds have been transferred out of the Clearance Manager's operational bank account to the Settlement Payee’s account. The Clearance Manager provides information to the Settlement Payee that is used to automate reconciliation of the payment.

1. Settlement of commission when method of payment is “Credit Card”.

Customer decides to purchase lounge access in addition to the flight service it has purchased already. The available payment method for this additional purchase is Payment Card. The commission for this additional sale is paid to the Seller using the Billing and Settlement Plan. As such Clearance Data for the commission is agreed at the time payment is committed for the lounge service.

a) Preconditions

Carrier (ORA) has successfully executed the payment for the lounge access with the credit card details provided by the Seller in the Payment Processing Details of the Order Change Request.

b) SwO Process

• When submitting the Payment Processing Details the agent submits the Payment Processing Clearance Data where:
  o The agent selects the Clearance Payee Data in the Clearance Role Choice Type because the agent will be receiving the payment for the commission.
  o Sets the Net Clearance Amount to be equal to the commission amount.
  o For the Process Rule Code uses the code corresponding to the standard processing of Clearances following the SwO Standard and Process.
  o Uses the signature provided in the order change request to sign the Payment Processing Clearance Data.

• When confirming the order to the agent the carrier uses the signed Payment Processing Clearance Data and:
  o Adds the Clearance Identifier to the Clearance Data
  o Provides the payment commitment date and time
  o Identifies itself as the Clearance Payer and signs the complete Clearance Data

• Carrier uses the Clearance Data signed by the Clearance Payer (the airline) and Clearance Payee (the agent) for the clearance request to the Clearance Manager

• Carrier sends ClearanceRQ message to the Clearance Manager including in it the signed Clearance Data and the Payment Brand Code, which in this case equals “IB” for BSP.

• After successful sanity check and validation, the Clearance Manager acknowledges the receipt of the ClearanceRQ message with ClearanceRS message. The ClearanceRS message includes the Clearance for the payment of the commission with 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”. In this ClearanceNotif message the agent is the Clearance Payee and the airline is the Clearance Payer.

• Following the Clearance Schedule on Clearing Notification Delivery Deadline Date the Clearance Manager sends the ClearingNotif message to the Remitance Payer, who in this case is the Carrier (ORA). The ClearingNotif message is identified with its ClearingID and includes the Total Amount that must be remitted by the Remittance Payer (ORA).

• On Remittance Date the Remittance Payer or ORA 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 Clearance Manger sends ClearingNotif message, that is identified with its ClearingID. The ClearingNotif message includes the Total Amount being settled to the Seller (or Settlement Payee) and the list of Clearances that have been aggregated for this ClearingNotif. The Clearance Manager also orders bank transfer to the Seller’s bank account for the Total Amount in the ClearingNotif message and includes in the remarks the ClearingID.

2. Settlement for a refund.

Seller has sold multiple services. Purchase has been paid and settled in full at time of order confirmation and Seller has received 10% commission, which has been cleared as well. Customer decides to cancel one of the services and according to order rules is entitled to CHF75 refund. Customer requests refund in cash to the Seller and the Seller then to ORA.

a) Preconditions

Remittance and settlement are in the same currency. Initial purchase has been paid and cleared in full. The market where the Carrier and Seller operate and concluded this transaction allows for refund of commission.

b) SwO Process

• ORA and Seller have completed the re-shopping for the voluntary servicing request and the Seller confirms the refund with an Order Change Request where
  ** o The payment method is Settlement Plan which is the original payment method.
  ** o Payment Processing Clearance Data is completed by the Seller:
  *** In its role as Clearance Payee because the agent will be receiving the payment for the refund.
  *** Including the Net Clearance Amount to be equal to the refund amount net of initially paid commission. The Net Settlement Amount equals to CHF67.5 (CHF75 for the refund related to the cancelled item net of the CHF7.5 for the commission paid to the seller at the time of sale [CHF7.5-CHF75=-CHF67.5]).
  *** Using for the Process Rule Code the code corresponding to the standard processing of Clearances following the SwO Standard and Process.
  *** Signing the Payment Processing Clearance Data with the signature provided in the order change request.

• ORA commits the refund to the Seller using the signed Payment Processing Clearance Data and:
  ** o Adds the Clearance Identifier to the Clearance Data
  ** o Provides the payment commitment date and time
  ** o Identifies itself as the Clearance Payer and signs the complete Clearance Data.

• ORA sends ClearanceRQ message to the Clearance Manager where ORA has included the signed Clearance Data and adds the Payment Brand Code, which in this case equals “IB” for BSP.

• 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 Seller. The ClearanceNotif message includes the Remittance Date “RD” and the Settlement Date “SD” as per Clearance Schedule, and the Clearance Status Code “Accepted”. The Seller here is the Clearance Payee and the Carrier is the Clearance Payer.

• 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 (or the Carrier) and the list of Clearances that have been aggregated for this Clearing Notification.

• 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 Clearance Manger sends ClearingNotif message that is identified with its ClearingID. The ClearingNotif message includes the Total Amount being settled to the Seller (or Settlement Payee) and the list of Clearances that have been aggregated for this ClearingNotif. The Clearance Manager also orders bank transfer to the Seller’s bank account for the Total Amount in the ClearingNotif message and includes in the remarks the ClearingID.