3025 Air new zealand

Introduction

• What it is: This MCC covers businesses that provide air transportation services under the Air New Zealand brand.
• Risk level: Medium — Typically involves higher ticket values and potential chargebacks.
• Acceptance difficulty: Medium — Underwriters may require thorough financials due to the nature of travel bookings.
• Typical business models: airlines; charter services; travel agencies specializing in air travel.
• For merchants: Expect moderate MDR; potentially higher reserves; and detailed transaction reporting requirements.
• What PSPs expect: Comprehensive business documentation; proof of operational licenses; and a clear refund policy on your website.

Payment Insights & Benchmarks

Merchants in this MCC should anticipate unique challenges associated with travel-related payments. Factors such as global payment trends, customer behavior, and varying transaction sizes can significantly impact payment performance.

Payment methods

Cards: widely accepted but may face restrictions based on international transactions and specific card types.

• E-wallets: gaining traction for convenience but may not be universally supported across all regions.
• Direct bank transfers: are often preferred for large transactions, though acceptance can vary.
• Travel vouchers and gift cards: popular for customer flexibility and pre-paid travel arrangements.

Authentication & security

Strong authentication (3DS, SCA) is often required due to high transaction values and fraud risk.

• These measures help reduce fraudulent book-outs, although friendly fraud may still occur.
• Merchants should employ comprehensive fraud detection tools tailored to travel-related scams.

Benchmarks (indicative, not guaranteed)

MDR: often on the higher side compared to standard e-commerce, particularly for cross-border transactions.

• Rolling reserves: may be applicable in some cases, especially for higher risk transactions.
• Settlement cycles: could extend beyond the typical 2-4 days, especially for international bookings.
• Chargeback ratios: typically higher, reflecting the complex nature of travel bookings and cancellations.
• Card approval rates: can fluctuate widely due to international fraud filters; alternative methods may see better approval.

Key metrics to monitor

Authorization rates segmented by payment method and region.

• Chargeback reasons, focusing on categories like fraud vs. customer service issues.
• Average transaction value and customer booking patterns.
• Trends in payment method preferences over time.

Risk & Compliance

Merchants under the MCC for Air Travel (3025) are subject to heightened scrutiny due to the potential for high-value transactions and associated risks. Payment service providers (PSPs) and acquirers demand robust measures to combat fraud, chargebacks, and compliance with anti-money laundering (AML) and know-your-customer (KYC) requirements.

Chargebacks & fraud

Frequent instances of friendly fraud, where customers dispute legitimate charges claiming they didn't authorize them, can lead to increased chargeback ratios.

• The use of stolen credit cards for flight bookings and ticket scalping is prevalent, making transaction legitimacy a concern.
• Mitigation strategies should include employing device fingerprinting, transaction monitoring systems, and implementing clear cancellation and refund policies to reduce chargeback risk.

AML/KYC expectations

PSPs expect rigorous identity verification processes, including government-issued ID checks and verification against sanctions lists.

• Source-of-funds verification is essential, particularly for high-value bookings or changes, to prevent illicit transactions.
• Indicators for manual review may include unusually large purchase amounts, a high frequency of bookings within a short time frame, or mismatched information on account holders.

Operational red flags

Lack of transparency around the merchant’s ownership and operational structure can raise concerns for PSPs, especially in cases involving third-party booking agents.

• Traffic sourced from regions with high levels of online fraud or where flight routes are restricted can trigger additional scrutiny.
• Insufficient customer support for disputes and unclear refund policies can exacerbate chargeback issues and erode trust.
• Failure to implement and communicate responsible travel policies, including safety measures and rebooking options in case of cancellations, can also flag the operation as high-risk.

Onboarding Checklist

Merchants under this MCC should prepare a complete onboarding package before approaching PSPs or acquirers. A well-structured submission improves approval chances and shortens review times.

Legal & corporate documents

company registration and incorporation documents

• disclosure of beneficial owners (UBO) and corporate structure
• valid licenses for the relevant business activities
• policies: Terms of Service, Privacy, AML/KYC, Refund Policy

Financials & risk management

recent financial statements and cashflow forecasts

• liquidity or reserve model for payouts
• description of antifraud setup and monitoring tools

Product & marketing

demo access or screenshots of the live platform

• marketing plan and traffic source overview (affiliates, SEO, PPC)
• geographic targeting information
• KYC flow details, including IDV providers and thresholds

Technical integration & security

payment architecture overview with supported methods/providers

• description of SCA/3DS flows, retry logic, and tokenization
• PCI DSS compliance status and data storage policy

Operations

customer support coverage (languages, 24/7 if available)

• SLA for dispute handling and chargeback response
• deposit, bet, and payout limits; self-exclusion mechanisms
• internal process for chargeback investigation and documentation

Regulation & Licensing

Licensing and certification are crucial for merchants in the air transportation MCC, as payment service providers (PSPs) and acquirers will require proof of compliance before onboarding. Recognition of licenses often depends on the merchant's jurisdiction and the markets they serve.

Operator licenses

Civil Aviation Authority (CAA) — the primary regulatory body in many countries, including New Zealand, overseeing the safety and security of aviation operations.

• International Air Transport Association (IATA) certification — recognized globally, essential for airlines operating international routes.
• Federal Aviation Administration (FAA) — essential for operations within the United States, ensuring compliance with federal aviation regulations.
• European Union Aviation Safety Agency (EASA) — relevant for European operations, providing a single safety regulation framework across the EU.
• Some countries may require additional local licenses depending on the specific aviation services provided.

Geo-restrictions

Some countries may impose restrictions on foreign airlines operating within their borders, impacting service availability.

• National aviation regulations vary widely and can limit operations depending on the region or country of focus.
• Certain regions may have air traffic agreements affecting overflight rights, influencing operational routes.

Certifications & audits

Compliance with IATA's Operational Safety Audit (IOSA) for operational safety and management standards.

• Regular maintenance and safety audits as mandated by local aviation authorities.
• Environmental compliance certifications, particularly for emissions and noise regulations.
• Security audits to meet both national and international standards for passenger and cargo safety.

Official Definitions & Network Comparisons

This section shows how major card networks define this MCC and highlights practical differences that affect merchant onboarding.

Explanation:

Although the definitions are broadly similar among networks, the terms used (e.g., “ticket sales” vs “travel-related services”) may lead to different compliance requirements. Some networks may require specific IATA registration or impose additional scrutiny based on regional laws. Common rejection reasons include failure to provide necessary certifications and issues related to chargeback levels in the travel industry.

Alternative MCC Codes

Merchants often confuse this MCC with other categories. The table below shows which codes are related, why they are confused, and what risks misclassification brings.

Rule of thumb for merchants:

If your business primarily offers airline ticketing or travel services, ensure that you use MCC 3025. Misclassifying under a different code related to transport could lead to compliance issues and potential financial penalties.

Best Practices for Merchants

Merchants in the airline industry, such as those associated with Air New Zealand, must navigate complex payment landscapes while managing risk and customer expectations. Implementing robust practices is essential for optimizing acceptance and ensuring an efficient operational framework.

Classification & transparency

always use the correct MCC relevant to airline services to avoid account issues

• ensure clarity in flight regulations, ticket policies, and fees on the website
• provide unambiguous business descriptors that accurately reflect transactions

Fraud & chargeback reduction

utilize 3DS or step-up authentication for transactions perceived as high risk (e.g., large bookings, international flights)

• implement clear billing descriptors and send instant confirmations to enhance customer trust
• maintain detailed logs of transactions and customer interactions for effective dispute management

Payment acceptance optimization

offer multiple payment methods, including credit cards, digital wallets, and local alternatives to enhance customer convenience

• optimize transaction routing based on geographical factors and continuously test payment service provider (PSP) performance
• consider using separate merchant IDs (MIDs) for various geographical markets or types of tickets to tailor processing strategies

Operational discipline

monitor key performance indicators (KPIs) such as authorization rates, decline reasons, chargeback ratios, and sales performance

• conduct regular compliance audits to address potential issues and ensure adherence to industry standards
• establish a dedicated team for managing disputes with set timelines for resolutions

Payouts & liquidity

create liquidity buffers to accommodate rolling reserves and accommodate potential refunds

• implement automated anti-money laundering (AML) checks for withdrawal transactions, especially for high-value refunds
• keep track of payment cycles and identify any unusual payout patterns to safeguard funds

Business Scope & Examples

This MCC covers businesses that primarily engage in air transportation services, including commercial airlines and relevant auxiliary operations. Merchants classified under this category usually provide services where customers pay for air travel, whether domestic or international, and often include associated travel-related payments.

Models

commercial airline operators (passenger flights)

• charter flight services
• air cargo carriers
• travel agencies specializing in flight bookings
• airline loyalty programs

Borderline cases

Air travel aggregators — platforms that compare flights and prices from multiple airlines; may be classified based on service type.

• Non-commercial aviation services — private planes, helicopters, and other non-scheduled flights; these may not fit if not primarily for passenger transport.

Signals for correct classification

payments are made directly for the purchase of air travel tickets

• services include the transport of passengers to/from designated airports
• financial transactions relate primarily to air travel rather than ancillary travel services