Current Practices, Challenges and Prospects of Using Credit Cards as a Payment Method: The Case of Ethiopian Airlines Enterprise
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Date
2015-06
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Addis Ababa University
Abstract
This research paper examined the current practices, challenges, and prospects of using
credit cards as a payment method by Ethiopian Airlines and it is done by adopting
concurrent mixed research approach. Qualitative methods were employed by means of
interviews and review of related documents while quantitative methods were used through
survey of sales agents, area managers, officers and senior managers on the area. A total of
65 questionnaires were distributed to officers and managrs and 47 were collected and 6
interviews were conducted with directors and managers of the airline and that of merchant
banks.
The main findings of the study were that the internal control systems of the airline are not
adequate enough to prevent card frauds and mitigate the credit card financial risk.
Adequate and recurrent trainings for operational and back office staff on credit card
acceptance and fraud prevention and having well-organized credit card desk with skilled
and sufficient man power are the main critical success factors that are not either in
existence or are not effective.
Management of the airline threfore, need to take immediate corrective action to the
increasing threat of card fraud by means of provision of awareness and recurrent training
for operational and back office staff; implementing the latest fraud screening and fraud
prevention tools in all of the airlines’ sales cahnnels; establish well-organized credit card
desk with well trained and suficient staff; establish clear policies and procedures with clear
assignment of responsibilities among operational and support staff; and ensure that there
is seamless and integrated system.
Key words: Card payment industry; chargeback, card fraud, payment method, merchant,
issuing bank, card schemes
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Keywords
Card payment industry, Chargeback, Card fraud, payment method, Merchant, Issuing bank, Card schemes