AA Non-Rev Payroll Deduction Charges, Proposed Change Possible.

If they are adopting the US system which I think was announced some time ago it is no problem.  You can use a CC or debit (w/ MC or Visa logos). You can also register your guest and they can log in and buy their own guest passes. I have been doing it that way for years and it works great. They manage it and pay for it all by themselves.
The only thing employees are paying for is upgrades or international taxes. My wife goes back home to Canada all the time, if she doesn't use a ticket I just move the date out a few months and it sits in my bank. I have done some refunds on a parent tickets and it hits my debit card in about 3 days.


 
 
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eolesen said:
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Compare that to invoice billing for retirees... I'd guess the cost of printing out and mailing an invoice after the fact is costing at least $0.50 in terms of postage and materials.

....
 
Just heard from the Travel department and you are exactly right.
 
UPNAWAY said:
If they are adopting the US system which I think was announced some time ago it is no problem.  You can use a CC or debit (w/ MC or Visa logos). You can also register your guest and they can log in and buy their own guest passes. I have been doing it that way for years and it works great. They manage it and pay for it all by themselves.
The only thing employees are paying for is upgrades or international taxes. My wife goes back home to Canada all the time, if she doesn't use a ticket I just move the date out a few months and it sits in my bank. I have done some refunds on a parent tickets and it hits my debit card in about 3 days.
 
 
 
I'm ok with the CC if it's always post-travel charging.  If we have to submit for refunds...that would be an idiotic process.
 
With AA's daily turnover, the CC fees would be negligible. Small businesses might pay 2-4% transaction fees, but when you do a couple million transactions per week, adding in the % of NRSA's which incur a service fee is little more than a rounding error.

Compare that to invoice billing for retirees... I'd guess the cost of printing out and mailing an invoice after the fact is costing at least $0.50 in terms of postage and materials.

I'm assuming international employees are still paying their fees up-front?
does AA bill by invoice for retirees? and if so, does that include D3 passes? how long do they get to pay.

it costs more at another airline that mails it wherever in the world the retiree lives.

Nothing wrong with using a credit card or autodebit option.

The only rub is the description here of having to prepay for travel services that may or may not be used and then have to deal with refunds. Refund processing costs money for customers and for a company.
 
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AirwAr said:
 
How in the world can this sound like a good idea to you?!?!?!   You have to hold money in an account...even if you don't end up using it.  How idiotic is this idea.  
 
As for CC payments...why in the world would AA want to incur the CC fees for non-rev travel.  Seems absolutely stupid!!!!!
Well, for one thing, you don't keep 100's of dollars in there. When you are planning on a trip you'd like to upgrade on ( or THINK you have a shot at, HAHA) you put money in your bank. I have never tried it since it's a fairly new system. I THINK you can also submit to refund from the bank but like I said, I've never used it. AA doesn't have to send retirees a bill who then have to send a check or credit card number. I think it is more efficient for everyone. 
 
This is the chart for upgrade fees and I just went and looked at the manage your bank option. There is a refund button so it looks like you can refund your upgrades if you don't use them.  Sounds likes it's pretty much automated too. 
 
 Domestic Upgrade - Low-$10 < or =999 miles
Domestic Upgrade - Medium $20 -1000 - 1999 miles  
 Domestic Upgrade - High $40 - 2000 - 2999 miles
Transoceanic Upgrade $100 > or =3000 miles
 
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ChrisUS said:
This is the chart for upgrade fees and I just went and looked at the manage your bank option. There is a refund button so it looks like you can refund your upgrades if you don't use them.  Sounds likes it's pretty much automated too. 
 
 Domestic Upgrade - Low-$10 < or =999 miles
Domestic Upgrade - Medium $20 -1000 - 1999 miles  
 Domestic Upgrade - High $40 - 2000 - 2999 miles
Transoceanic Upgrade $100 > or =3000 miles
 
If you have to go and put money in the "bank"...then, ask for a refund when you don't get the upgrade...that's not automatic...that's IDIOTIC!!!!  If you have a family of 4...that's $800...or more you would have to bank for the round trip flights.  DUMB!!!!!
 
Compare that process to...LAA, where the company simply withholds money from your paycheck for what you ACTUALLY travel.  How can it be anymore simple than that.
 
However, like I said, if the change is to simply charge a credit card instead of payroll deduction for what is actually traveled...that won't be an issue for me.  It's this stupid banking thing that gets me.
 
AirwAr said:
 
If you have to go and put money in the "bank"...then, ask for a refund when you don't get the upgrade...that's not automatic...that's IDIOTIC!!!!  If you have a family of 4...that's $800...or more you would have to bank for the round trip flights.  DUMB!!!!!
 
Compare that process to...LAA, where the company simply withholds money from your paycheck for what you ACTUALLY travel.  How can it be anymore simple than that.
 
However, like I said, if the change is to simply charge a credit card instead of payroll deduction for what is actually traveled...that won't be an issue for me.  It's this stupid banking thing that gets me.
Well, you can fume and vent about how dumb you think it is but as has been proven time and time again, the powers that be will do what they want and we have no say in it.  It is what it is. 
 
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ChrisUS said:
Well, you can fume and vent about how dumb you think it is but as has been proven time and time again, the powers that be will do what they want and we have no say in it.  It is what it is. 
Just like retirees boarding AFTER actives......It is what is!
 
I am a retiree and when I travel and use an upgrade, I receive an electronic statement. AA has my checking account on record and then I ok the company to debit my checking account.
 
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ChrisUS said:
Well, you can fume and vent about how dumb you think it is but as has been proven time and time again, the powers that be will do what they want and we have no say in it.  It is what it is. 
 
True.  All because Horton lost (gave up) control.