What is Travel Insolvency Chargeback Insurance (TICI)?
Travel Insolvency Chargeback Insurance insures the Acquirer against insolvency related Chargeback costs borne as a result of Travel Merchant Insolvency.
How best can Acquirers explain TICI to their Merchants?
Acquirers should not talk about TICI to their merchants as it is an insurance policy for the acquirer which cannot be sold on, except through authorised Insurance Intermediaries.
We suggest including terms into the merchant facing acquiring agreement: Chargeback Liability Insolvency Charge (CLIC) as a contractual Security Measure (between Merchant and Acquirer) to safeguard and satisfy the Acquirer. The Acquirer should add a “Chargeback Liability Insolvency Charge (CLIC)” security term to their contract with the Merchant.
Are Merchants Policyholders?
No, Merchants are not Policyholders. TICI is a policy arranged by TMU Management solely for Acquirers, who are the Policyholder.
Who bares the cost of the Insurance policy?
The Acquirer bears the cost but can choose to pass on any fees but only as a non-insurance consideration, we recommend as a CLIC Security Measure fee.
Will TMU Management have a contractual relationship with the Merchant?
No. The Principal Policyholder signs a contract with TMU Management. The Merchant signs a Merchant Services Agreement with the Acquirer within which CLIC can be chosen to be factored in.