3245 Easyjet airlines

Introduction

• What it is: This MCC covers transactions for budget airline services primarily focused on passenger transportation.
• Risk level: Medium — High volume of chargebacks may be observed in the airline industry.
• Acceptance difficulty: Medium — Acceptance can vary due to ticket reselling and cancellation policies.
• Typical business models: budget airlines; travel agencies; flight booking platforms; ancillary service providers.
• For merchants: Expect moderate MDR rates; some PSPs may require reserves; strong onboarding due to potential fraud risks.
• What PSPs expect: Detailed business plan; proof of inventory or service delivery; compliance with ticketing regulations.

Payment Insights & Benchmarks

Merchants in this MCC should plan for specific payment dynamics related to travel services, particularly airlines. Payment acceptance can be influenced by seasonality, booking channels, and customer preferences, often leading to varied experiences.

Payment methods

Cards: widely accepted, but may face higher declines during peak travel times.

• E-wallets: popular for ease of use, especially among younger travelers, but may charge higher fees.
• Bank transfers: a reliable alternative, often used for larger transactions like group bookings.
• Travel vouchers: used commonly but create complexities in terms of refunds and chargebacks.
• Loyalty points and miles: can drive bookings, but the integration can vary by platform.

Authentication & security

Strong customer authentication (SCA) and 3DS are frequently required for online bookings.

• These measures help mitigate fraud but can lead to additional friction for legitimate customers.
• Continuous fraud monitoring is essential, given the high value and frequency of travel purchases.

Benchmarks (indicative, not guaranteed)

MDR: generally higher than standard e-commerce rates due to the risk of chargebacks.

• Rolling reserves: might apply, especially during peak seasons, to manage risk.
• Settlement cycles: can be extended, often taking 5-10 days, especially for international transactions.
• Chargeback ratios: typically elevated compared to retail, necessitating proactive management strategies.
• Approval rates: lower during high-demand periods; consistent monitoring is vital.

Key metrics to monitor

Transaction volumes by payment method to understand customer preferences.

• Chargeback reasons and patterns to identify potential issues early.
• Refund rates, especially during peak travel season.
• Booking abandonment rates to gauge friction in the payment process.

Risk & Compliance

Merchants under this MCC are closely scrutinized due to elevated financial and reputational risks. PSPs and acquirers typically apply stricter controls, expecting merchants to proactively address fraud, chargebacks, and AML/KYC compliance.

Chargebacks & fraud

Frequent issues with chargebacks due to customer disputes over flight cancellations and changes, leading to increased friendly fraud claims (“I didn’t authorize this transaction”).

• Use of stolen payment cards and account takeover attempts are prevalent, especially during high-travel periods.
• Mitigation tools include chargeback alerts, fraud detection software, and customer verification measures such as CVV checks and 3D Secure transactions.

AML/KYC expectations

Strong customer identity verification (IDV) with comprehensive sanctions and politically exposed person (PEP) checks.

• Source-of-funds verification must be performed for high-value ticket purchases or unusual booking patterns.
• Manual review triggers include frequent high-value transactions, bookings from flagged IP addresses, and variations in the customer’s travel history.

Operational red flags

Lack of transparency regarding refund policies and terms at the point of sale can alarm PSPs.

• Unclear ownership structures, particularly in cases of hidden operators or reseller agreements.
• High levels of bookings from restricted regions or networks flagged for malicious activity.
• Inadequate customer service responsiveness to mitigate potential disputes and flight-related complaints.

Onboarding Checklist

Merchants under the MCC code 3245 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 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

Civil Aviation Authority (CAA) — required for airlines operating in the UK and highly regarded by local PSPs.

• Federal Aviation Administration (FAA) — essential for US-based airlines, ensuring compliance with national aviation standards.
• European Union Aviation Safety Agency (EASA) — recognized across EU member states, vital for compliance in European markets.
• Air Operators Certificates (AOC) from various jurisdictions — necessary for operations within specific countries and regions.
• Some destinations may require additional licensing under local transport authorities, depending on flight routes.

Geo-restrictions

Operating restrictions based on national or local regulations, such as route slots and traffic rights.

• Certain countries may impose bans on specific airlines or flights based on diplomatic relations.
• Regulatory compliance varies significantly between regions, affecting route authorization and airport access.

Certifications & audits

IATA Operational Safety Audit (IOSA) for safety and operational performance standards.

• PCI DSS compliance for payment card transaction security when selling tickets online.
• Regular audits for compliance with aviation regulations and safety standards.
• Environmental audits to adhere to local and international environmental regulations.

Official Definitions & Network Comparisons

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

Explanation:

The definitions for airline services are consistent across networks, but certain nuances (e.g., requirement for IATA accreditation) can impact onboarding. Each network may impose different guidelines based on geographic risks and business stability. Common denial reasons include lack of necessary documentation or accreditation, high-risk regions, and unclear transaction histories.

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 provides commercial air travel services, you should use MCC 3245. Misclassifying under other codes, especially for accommodation or miscellaneous travel services, can lead to compliance issues and account problems.

Best Practices for Merchants

Merchants operating under the MCC 3245 (EasyJet Airlines) must remain vigilant in managing their payment processes and customer interactions due to the inherent risks associated with travel-related transactions. The following best practices aim to enhance acceptance rates, mitigate risks, and foster sustainable relationships with payment service providers (PSPs).

Classification & transparency

always use the correct MCC; misclassifying can lead to account restrictions or closures

• clearly display company policies, cancellation terms, and customer support options on your website
• ensure transparent business operations and clear billing descriptors to enhance customer trust

Fraud & chargeback reduction

implement 3DS or step-up authentication for transactions flagged with high-risk indicators (e.g., unusual travel locations)

• use clear and recognizable billing descriptors to reduce the likelihood of customer disputes
• log all transactions and customer interactions for potential dispute evidence and representment

Payment acceptance optimization

offer multiple payment methods (credit cards, pay-later services, and travel wallets) to cater to diverse customer preferences

• analyze transaction routing based on geography and customer behavior, adjusting accordingly for optimal approval rates
• consider setting up separate merchant IDs (MIDs) for various services or markets to manage risk exposure effectively

Operational discipline

monitor KPIs such as transaction approval rates, chargeback ratios, and average revenue per passenger (ARPPU)

• conduct regular compliance audits to ensure adherence to internal policies and payment processing standards
• establish a dedicated team or point person for handling disputes, equipped with response time expectations

Payouts & liquidity

maintain buffer funds to accommodate rolling reserves and manage operational cash flow effectively

• implement automated AML checks for all withdrawal requests, particularly those exceeding specific thresholds
• continuously monitor payout speeds and withdrawal trends to identify any irregularities promptly

Business Scope & Examples

This MCC covers businesses that are primarily engaged in providing air transportation services for passengers. Merchants classified under this category usually offer scheduled and chartered flights, serving both domestic and international routes. The focus is on carriers that facilitate the travel experience by offering ticket sales and associated travel services.

Models

scheduled airlines (commercial passenger flights)

• charter airlines offering non-scheduled services
• low-cost carriers providing budget travel options
• air taxi services for on-demand flight sharing
• travel agencies specializing in flight bookings

Borderline cases

Travel aggregators — platforms that aggregate flight options from various airlines; typically classified under travel-related MCCs rather than direct air transportation.

• Airline lounges and hospitality services — while offering comfort services at airports, these businesses do not directly provide air transportation and may have separate classifications.
• Freight carriers — businesses that focus on air cargo transport rather than passenger services are classified differently.

Signals for correct classification

primary revenue comes from selling tickets for passenger flights

• services include scheduled flights with published timetables
• business operates with direct connections to airports for passenger services