3031 Olympic airways

Introduction

• What it is: This MCC covers airlines specifically focused on providing passenger air transport services.
• Risk level: Medium — Fluctuations in travel demand can impact revenue stability.
• Acceptance difficulty: Medium — Airlines may face higher scrutiny due to chargeback risks.
• Typical business models: Scheduled passenger airlines; charter airlines; air travel aggregators; airline subsidiaries.
• For merchants: Expect moderate MDR rates and potential for reserves; prepare for thorough customer identity verification.
• What PSPs expect: Business registration and verification; proof of operational licenses; strong travel-related website or service offering.

Payment Insights & Benchmarks

Merchants operating under the MCC 3031 — Olympic Airways — should anticipate unique payment challenges and dynamics compared to standard e-commerce. Success in this sector often hinges on a strategic mix of payment methods, robust fraud prevention, and careful management of refund and chargeback scenarios.

Payment methods

Cards: widely accepted, but high transaction values may lead to increased scrutiny, resulting in lower approval rates.

• E-wallets: popular for their convenience, especially among frequent travelers, but not universally adopted.
• A2A payments: essential for seamless transactions, especially in high-value bookings, though adopting banks can vary.
• Travel vouchers or gift cards: often preferred for promotional purposes and customer loyalty rewards.
• Foreign currency payments: can attract additional fees and requires transparent communication about exchange rates.

Authentication & security

Strong Customer Authentication (SCA) is often mandatory, particularly for cross-border transactions.

• While 3DS can provide additional security, it may lead to higher abandonment rates during checkout.
• Monitoring for friendly fraud is crucial, as customers may seek chargebacks for legitimate service complaints.

Benchmarks (indicative, not guaranteed)

MDR: generally higher, reflecting industry-specific risks and costs.

• Rolling reserves: often in double digits to mitigate chargeback risks.
• Settlement times: typically longer (5-10 days) due to complex fare structures and cancellations.
• Chargeback ratios: may exceed the average, particularly during peak travel seasons.
• Approval rates: usually lower for high-value transactions when compared to lower-risk sectors.

Key metrics to monitor

Authorization rates segmented by payment type and customer profile.

• Chargeback rates and their causes, focusing on fraud versus service-related disputes.
• Customer satisfaction metrics linked to payment experiences and issue resolution.
• Average transaction size and variations during peak travel seasons.

Risk & Compliance

Merchants operating under the MCC 3031, which pertains to airline services, face significant scrutiny from payment service providers (PSPs) and acquirers due to concerns related to fraud and chargebacks. Ensuring compliance with risk management standards is essential for maintaining business integrity and minimizing financial losses.

Chargebacks & fraud

High instances of friendly fraud and claims of non-receipt or unauthorized travel transactions.

• Frequent use of stolen credit cards for ticket purchases, leading to chargebacks once the fraud is identified.
• Mitigation tools include velocity checks for ticket purchases, booking confirmation verification, and implementing two-factor authentication for online transactions.

AML/KYC expectations

Comprehensive customer identity verification, including government-issued ID verification and address confirmation.

• Sanctions screening against watchlists for potential high-risk travelers or payments.
• Manual review triggers involve large one-time purchases, international bookings from unusual locations, or discrepancies in customer information.

Operational red flags

Lack of transparency regarding ownership, especially in case of white-label services or partnerships with third-party agencies.

• Suspicious patterns in booking sources, such as unusually high cancellations or no-shows linked to specific geographies.
• Absence of clear refund and change policies, which could indicate potential exploitations or scams by customers.
• Issues with customer support responsiveness, particularly in resolving disputes or addressing chargeback claims.

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
• 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 critical for merchants in this MCC, as PSPs and acquirers will require proof of compliance before onboarding. Recognition of licenses depends heavily on the merchant’s jurisdiction and the markets they target.

Operator licenses

Federal Aviation Administration (FAA) — crucial for commercial aviation in the United States, ensuring safety and standards.

• European Union Aviation Safety Agency (EASA) — essential for operators within the EU, overseeing licensing and safety compliance.
• Transportation Security Administration (TSA) — U.S. body responsible for the security of all modes of transportation, affecting passenger operations.
• Air Operator Certificate (AOC) from national aviation authorities — required to operate commercial air services, varying by country.
• Some countries may enforce additional licenses based on specific operational needs or cargo types.

Geo-restrictions

Many countries impose strict regulations on air travel, affecting foreign operators.

• Certain regions may have bilateral air service agreements that restrict operational capabilities.
• National security regulations might limit flights to/from certain locations.

Certifications & audits

Compliance with IATA Operational Safety Audit (IOSA) standards for operational safety checks.

• Security audits as required by TSA or equivalent authorities in other jurisdictions.
• Environmental compliance audits related to emissions and noise regulations.
• Regular safety and maintenance audits to ensure compliance with aviation standards.

Official Definitions & Network Comparisons

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

Explanation:

While all networks broadly classify this MCC under travel services, variations in phrasing (e.g., "tour operators" vs "related services") can lead to different onboarding criteria. Additionally, specific licensing and accreditation may be required by some networks, further complicating the acceptance process. Common reasons for denial may include lack of appropriate licenses or documentation, non-compliance with industry standards, and unclear descriptions of services offered.

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:

Ensure that your business directly relates to transporting passengers via air. Misclassifications with other travel services can lead to compliance issues and payment processing problems. Always classify under the correct MCC based on your primary service.

Best Practices for Merchants

Merchants operating under the Olympic Airways MCC must navigate complex regulations and market dynamics to ensure smooth operations and minimize risk. Adhering to best practices can enhance customer experience, optimize payment acceptance, and fortify relationships with payment service providers (PSPs).

Classification & transparency

always use the correct MCC to avoid processing disruptions and potential account closure

• clearly display any applicable terms and conditions on the website, including changes in routes or services
• ensure that business models and ticketing policies are transparent to build trust with customers

Fraud & chargeback reduction

utilize 3DS or step-up authentication for higher-value transactions or when risk signals are detected

• provide clear and unambiguous billing descriptors to minimize confusion in customer statements
• maintain detailed logs of booking and transaction events to support potential dispute representments

Payment acceptance optimization

offer multiple payment methods including cards, online wallets, and travel credits to accommodate diverse customer preferences

• implement geo-based routing to optimize transaction success rates based on regional payment trends
• consider A/B testing of different PSP providers to identify the most efficient processing options

Operational discipline

monitor key performance indicators (KPIs) such as refund rates, chargeback ratios, and transaction decline codes

• conduct regular compliance audits to review adherence to internal policies and payment processing regulations
• establish a dedicated team for handling disputes, ensuring timely resolutions and tracking progress

Payouts & liquidity

maintain adequate liquidity buffers to account for rolling reserves and potential delays in fund transfers

• integrate automated AML checks for any withdrawal requests, especially those exceeding standard thresholds
• keep an eye on payout patterns to detect any unusual withdrawal activity, ensuring secure fund management

Business Scope & Examples

This MCC encompasses businesses primarily involved in air transportation services. Merchants classified under this category typically provide flights and related services for passengers traveling domestically or internationally. The scope focuses on enterprises that facilitate the movement of people through commercial flights.

Models

commercial airline operations

• charter flight services
• air travel agencies offering ticket sales
• aircraft rental and leasing companies
• air freight and cargo services

Borderline cases

Private jet charters — while they provide transportation, these services may not always fall under commercial flight operations; classification may depend on service structure.

• Tour operators — companies that package travel services may offer flights but primarily focus on broader travel experiences; often categorized differently.

Signals for correct classification

bookings are for scheduled commercial flights

• company owns or operates aircraft for passenger services
• services provided primarily involve the sale of air transportation rather than holistic travel packages