Collapse raises question mark over credit card chargebacks

Collapse raises question mark over credit card chargebacks
By admin


The recent collapse of All Travel Toukley in NSW proves that the majority of consumers will not be protected from travel agency insolvency by credit card chargebacks under ATAS, according to TravelManagers boss Barry Mayo.

Travel Compensation Fund chief executive Glenn Wells last week told The Australian that he was hopeful that $100,000 of the estimated consumer losses of $530,000 would be reclaimed via credit card chargebacks – 19% of the overall sum.

“With only 19% of All Travel’s client losses being attributed to credit card payments I think it clearly shows the reality that client payments using credit cards are decreasing, not increasing as the Australian Federation of Travel Agents has claimed,” Mayo said. “This is due to more and more suppliers charging for merchant fees.”

As a result, he questioned claims that credit cards chargebacks will be sufficient to financially protect consumers in the event of a company failure in a post-TCF industry.

Instead, this latest collapse provides another example of the financial risks faced by consumers upon the winding down of the TCF, according to Mayo. 

He once again called for consumer protection to be made a mandatory part of ATAS which will be implemented tomorrow.

Last week, it emerged that TravelManagers has engaged in government talks with the aim of extending the TCF so that it runs side by side with ATAS for a period of six months, to be funded by the remaining TCF reserves of $27 million.

“It should not be viewed as being too late to ensure ATAS provides a value-based consumer proposition,” he insisted.

“An extension of TCF so as to run parallel to ATAS through to the end of the year, appears to be the only logical solution.”

He once again urged travel agents and other travel intermediaries who have similar concerns to email their state minister responsible for consumer affairs without delay. 

Latest News

  • Events
  • Travel Agents

From Olympians to mindset coaches, Helloworld’s OMC conference wraps in style

The 2024 Helloworld Travel Owner Managers Conference (OMC) has wrapped up in style in Sydney with over 550 attendees in attendance. The event brought together Helloworld owner-managers from across Australia and New Zealand along with valued supplier partners, special guest speakers, senior management and staff for three days of conferencing, insightful content and events across […]

  • Tour Operators

Bunnik Tours welcomes KJ Phillips as the new BDM for QLD

Karen (KJ) Phillips has been appointed as Bunnik Tours’ first Queensland-based BDM since Covid, as the small group touring specialist sets their sights on big growth. Phillips is making a comeback to the travel industry after her most recent role as an account manager outside of the sector. Bringing her extensive experience and decades of […]

  • Hotels

Drifter to usher in new age of affordable hybrid accommodation in Christchurch

Leisure Accommodation Collective (LA Co) is set to launch the 95-room Drifter Christchurch on 1 June, the first of its five Drifter hybrid hotels across New Zealand and Australia. Drifter Byron Bay, in the centre of Byron Bay at 1 Lateen Lane, is also set to open this year. Housed in one of the city’s […]

  • Conferences

Delegates ready for Africa’s travel showcase Travel Indaba at Durban ICC

Pan-African global travel showcase, Africa’s Travel Indaba, kicks off at Inkosi Albert Luthuli International Convention Centre (Durban ICC) on Monday, running to 16 May. Durban remains a top destination for both leisure seekers and business travelers. Collaborating with Durban, the province of KwaZulu-Natal (KZN) has bolstered security measures, particularly in tourist hotspots and around the […]

  • Aviation

Air Vanuatu cancels all flights to Australia, files for insolvency

UPDATE 10 MAY: Ernst & Young Australia (EY Australia) have stepped in as administrators after Air Vanuatu operations entered voluntary liquidation overnight. Representatives of EY are now in Vanuatu conducting safety and maintenance checks of the fleet, ahead of resumption of operations as soon as possible. The appointment follows a challenging period for the global […]

  • Destinations

Tropical North Queensland action-packed events calendar for adventure enthusiasts

Sporting enthusiasts and adventure seekers are gearing up for an action-packed year in Tropical North Queensland, with a lineup of sports events and adrenaline-pumping experiences set to take centre stage in 2024. Leading the charge is the highly-anticipated return of the Crankworx World Tour ‘Paradise Edition’ to Cairns from 22-26 May 2024. The mountain biking […]

  • Travel Agents

Disney Days returns with Inside Out 2 showing in Sydney, Brisbane, Melbourne and Auckland

Time is running out for agents to register their Expression of Interest to an exclusive screening of the much-anticipated Disney and Pixar film, Inside Out 2, hosted by Disney Destinations Australia/New Zealand team and partner United Airlines. Places are limited and applications must be in by 17 May. In addition to the screening of the […]

  • Cruise

Aranui Cruises slashes prices with No Single Supplement and Half Price offers

French Polynesian cargo cruise line Aranui Cruises is slashing thousands off its 2025 Austral and Marquesas Islands cruises with an autumn sale offering 50 per cent off the second guest in a twin share room and no single supplement for solo travellers. On sale until June 21, 2024, Aranui’s 12-day roundtrip voyage from Papeete to […]