Highlights of the 2013 ARA/IAH Changes

These highlights are for reference purposes only. This list is not intended to be all-inclusive.

Updated Accreditation Standards

  • Associate Branch - ARC will now offer a new office type known as the Associate Branch Location. An Associate Branch is defined as a Location that is not a single entity with the Home Office, in which the Home Office, or the Entity that owns the Home Office, has any ownership interest. The Home Office has full responsibility for the Associate Branch under this Agreement. (IAH Section N and ARA - Section 39.19.4)
  • Location Changes - If your agency moves from one (1) state to another state, your agency will retain its current ARC number.
  • Your agency will be able to apply for multiple ARC numbers at one (1) physical location.
  • Management Qualifier/ARC Specialist Qualifier -
    • The Management Qualifier for agencies will no longer require an agency employee to have two (2) years of travel industry experience. (ARA - Section 8.3.6.1)
    • Your agency's Management Qualifier and ARC Specialist Qualifier will no longer be required to reside at the Home Office Location. They may now reside at any location. (ARA - Section 8.3.6.1 and ARA - Section 8.3.6.2)

Sales Reporting and Settlement

  • Modification of the Draft/Credit Window - The settlement draft/credit schedule will be adjusted from 10 days to five (5) days after the sales reporting period. (ARA - Section 25.1)

    ARA Calendar Changes

  • No Sales Reports - ARC will auto-authorize a "No Sales" report for your agency at the close of the sales report period, should your agency have "zero sales" for that sales report period. (ARA - Section 25.2)

Compliance Updates

  • Quarterly Transaction Fees - A non-payment of a quarterly transaction fee may result in your agency's removal from the ARC Agency List. (ARA - Section 31.6.2)
  • Additional Operating Requirement:
    • Qualifying events for additional operating requirements (e.g. dishonored drafts and late reports) have been reduced from three (3) to two (2) occurrences. (ARA - Section 34.1.1 and ARA - Section 34.1.2)
    • Should your agency require additional operating requirements, your agency's notification time frame for those operating requirements have been reduced from 45 days to 30 days. (ARA - Section 34.3)
    • Should your agency require additional operating requirements, the calculation time frame for the required amount of the financial guaranty has been reduced from 10 weeks to six (6) weeks. (ARA - Section 34.3.1)

Communication

  • A clarification has been provided on the ways in which concurrence with future amendments to the ARA may occur. (ARA - Section 5.1)
  • Reaffirmation - Your agency must electronically confirm, on a minimum of an annual basis, eligibility and retention requirements of the ARA, including, but not limited to, ownership status and other personnel requirements. (ARA - Section 7)
  • A clarification has been provided on the importance of providing and maintaining an operational email address. Failure to maintain your agency's current operational email address with ARC is not a release from liability, and thus your agency must still adhere to the requirements of the agreement. (ARA - Section 15.6.2)

Updated ARA/IAH

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