Originally Posted by
directmisbi
Card aquirers have a hold back of almost 100 percent. Funds are released on the day pax are travelling. This has been the situation for more than a year. Receivables are standing at more than 11 billion nok. These are insane numbers and any normal company would have been bust long time ago if it wasn't for the work of a brilliant CFO.
This is difficult to understand. Merchant Card Acquirers know that even in the event of a failure, not everybody makes a Chargeback claim. It's not as if refunds are automatic, there's a convoluted process to go through. So 100% holding is over the top. There's a comparable scheme in the UK for train fare refunds in the event the train is cancelled/late more than a certain amount. Apparently claims run at about 10-15% of those entitled.