View Single Post
Old 09-09-2010, 04:25 AM  
Adraco
Confirmed User
 
Adraco's Avatar
 
Industry Role:
Join Date: May 2009
Location: Onboard an airplane around the globe
Posts: 3,733
This could, and I say COULD be a loophole. Since the airplanes never are connected to the ATM networks or the Merchant debit networks while in the air, they have no way of checking in real time.

And because sales onboard an airplane is done in the companies own monopoly store, since there is only one onboard, the profit margin on everything that's sold onboard is usually quite high. So normally it would make sene for the airline to just accept the cards as long as the amounts are a few houndreds just to make a sale. And then when they poll/empty the register machine back on the ground they will see a certain amount never went through. Then the airline will eat that loss themselves, because they still profit well enough from the other sales.

So in this case the airline assumes the credit risk, because the possible or expected value of each dollar spent is close to 1. And the loss margin is most probably less than the profit margin, which solves the equation for just about anyone.

"Take on a little bit more risk in return for making more sales - hmm - YES"

So as much as people shouldn't belive the ATM annoncement last night, I can not even believe people for one second belived such a thing, but this could very well be so as long as the amounts are fairly small, probably below $200 or maybe $300 worth. Then that's an aceptable risk for the airline.

The never ask for ID or pin number onboard the planes either, rarely even signature. This is because most people don't deny the charges, most are honest people. So to win some in usability and convenience for their staff onboard, the airline assumes the eventual credit loss risk.

It's after all a business and it makes perfect sense.
__________________
----------------------------------------------------------------------------------
The truth is not affected by the beliefs, or doubts, of the majority.
Adraco is offline   Share thread on Digg Share thread on Twitter Share thread on Reddit Share thread on Facebook Reply With Quote