CreditCards.com Visa credit cardsMasterCard credit cardsAmerican Express credit cardsDiscover credit cards

Thursday, April 24th 2014

ADVERTISEMENT

Delta amends credit card processing deal

By

Delta Air Lines announced that it eliminated a $1.1 billion holdback after amending its Visa and MasterCard credit card processing agreement.

The holdback, consisting of an $800 million cash reserve and an associated $300 million letter of credit, was put in place while Delta was going through bankruptcy proceedings. The $800 million will be used to bolster Delta's U.S. and international markets.

At this time, the whole cash reserve has been returned to the airline, while the letter of credit was terminated.

Earlier, the credit-card processors withheld paying Delta for an amount generally equivalent to potential liability for tickets bought using Visa or MasterCard that had yet to be used for travel.

However, Delta acknowledged that processors may again withhold credit-card payments to the airline after Oct. 31, 2008, if the agreement is not extended.

Published: June 20, 2007


If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.

Three most recent Frequent flier programs, airline rewards stories:

Share This Story




Follow Us!

Google+

Credit Card Rate Report

Updated: 04-24-2014

National Average 15.00%
Low Interest 10.37%
Balance Transfer 12.64%
Business 12.80%
Student 13.27%
Cash Back 14.84%
Reward 14.96%
Airline 15.30%
Bad Credit 22.73%
Instant Approval 28.00%

ADVERTISEMENT
ADVERTISEMENT
USA   |   UK   |   Australia   |   Canada
ADVERTISEMENT
ADVERTISEMENT