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ARC Corporate Communications
4100 N. Fairfax Drive, Suite 600
Arlington, VA 22203-1629
703 816-8525
Fax: 703 816-8168
corpcom@arccorp.com
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About ARC
ARC is the premier financial transaction processing and settlement corporation that facilitates the distribution of travel products and related information in the United States, Puerto Rico, and the U.S. Virgin Islands. There are nearly 30,000 ARC accredited travel agency locations and approximately 130 participating airlines and railroads in ARC's settlement system. Using increasingly sophisticated electronic means for ticket distribution, reporting, and remittance, these points of sale are responsible for air and rail sales of nearly $65 billion a year. For more information about ARC, please visit www.arccorp.com.
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ARC TO TEST CASH GUARANTEE FOR AGENCIES
Arlington, VA, March 18, 2004
- ARC is inviting accredited travel agency locations to participate in a pilot test of a cash deposit program.
ARC designed the Cash Deposit Pilot Program in response to an increasing number of inquiries from agents experiencing significant difficulty securing a bond
or letter of credit as required for ARC accreditation. Agencies participating in the pilot will provide a deposit directly to ARC rather than securing
a bond or letter of credit to meet the financial guarantee requirement.
"ARC is pleased to launch this pilot in response to inquiries from travel agents," said ARC President and CEO David R. B. Collins, CTC. "The financial guarantee program
is one of several protections designed to safeguard ARC's settlement system for the benefit of all of its users. The Cash Deposit Pilot Program allows ARC
to explore a new option that may be preferable for some accredited agencies and will continue to provide adequate protection for the system."
Participants in the pilot program will provide ARC with the following:
- a deposit in the form of certified check or a cashier's check in the full amount required for the financial guarantee
- a signed, notarized cash security deposit agreement
- a signed, notarized personal guaranty from each owner, with total liability limited to twice the amount required for the cash security deposit
- a signed, notarized statement of ownership
- a $100 processing fee
All of the required documents are completed by the agency, notarized and returned directly to ARC, limiting the amount of work required by the
agent to participate in the pilot. The processing fee is lower than the costs many agencies incur to secure a bond or letter of credit.
Participation in the Cash Deposit Pilot Program is limited to locations already accredited by ARC and will likely be most attractive to those agents who would
be required to post full collateral in order to secure a bond or letter of credit. For more information and
required forms, see www.arccorp.com/forms/aas/form309.pdf
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