An Agency Credit Memo (ACM) is a financial document issued by an airline to a travel agency that provides a credit or refund. It’s essentially the reverse of an ADM (Agency Debit Memo). While an ADM charges the agency for mistakes or under-collected amounts an ACM gives money back to the agency for corrections, adjustments or compensation. ACMs are processed through settlement systems like IATA’s BSP (Billing and Settlement Plan) or ARC (Airlines Reporting Corporation).

Why ACMs are issued (common scenarios)

• Overpayment corrections: If a ticket was overcharged or a tax/surcharge was collected in excess.
• Commission adjustments: To correct or restore travel agency commissions that were miscalculated or disputed.
• Reversals of ADMs: If an airline mistakenly issued a debit memo, it can cancel or offset it with an ACM.
• Schedule changes or disruptions: When an airline cancels or changes a flight, resulting in fare differences or refunds.
• Promotional or goodwill credits: In some cases, airlines may issue ACMs for service recovery or goodwill.

Impact of ACMs

• For airlines: Ensures financial transparency and trust with travel agencies by correcting errors and maintaining accurate settlement records.
• For travel agencies: Provides financial relief, restores commissions, and ensures they aren’t unfairly penalized for errors outside their control.
• For travelers: Indirect benefit, as accurate processing of ACMs helps agencies manage refunds, schedule changes and fair pricing.