What is a refund transaction?

What is a refund transaction?

• A. The issuance of a new ticket.
• B. The return of an unused coupon of a ticket transaction back to the issuing ARC participating carrier.
• C. A credit memo issued to the agency.
• D. A cash refund to the passenger.

Answer: (B)

A refund transaction is the movement of value from a refunded ticket back to the issuing carrier. When a ticket is refunded, the unused coupon(s) are returned to the carrier that originally issued the ticket, routed through ARC. This is how ARC records the refund—not by issuing a new ticket or by giving cash to the passenger, and it’s not simply a credit memo to the agency. So the correct description is the return of the unused coupon value to the issuing ARC participating carrier, completing the refund process.

A refund transaction is the movement of value from a refunded ticket back to the issuing carrier. When a ticket is refunded, the unused coupon(s) are returned to the carrier that originally issued the ticket, routed through ARC. This is how ARC records the refund—not by issuing a new ticket or by giving cash to the passenger, and it’s not simply a credit memo to the agency. So the correct description is the return of the unused coupon value to the issuing ARC participating carrier, completing the refund process.