Current Practices, Challenges and Prospects of Using Credit Cards as a Payment Method: The Case of Ethiopian Airlines Enterprise

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Addis Ababa University


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



Card payment industry, Chargeback, Card fraud, payment method, Merchant, Issuing bank, Card schemes