Demon of demonetisation haunts low cost airlines with fears of fraud

Demonetization has brought with it a problem for low cost airlines - it is the fear of card fraud as they switch over to go cashless for on-board sales. The problem is that card fraudsters could 'buy' eatables and drinks mid-air by swiping stolen cards. However, whether the transaction has been approved or not will be known only when the plane lands and the swipe machine is connected online to its bank.
By the time the airline realizes that a card swipe has been declined, the passengers would have alighted from the plane and gone away.
This has been reported in timesofindia.indiatimes.com dated 8 December 2016.

The problem would be less when landing in big cities or metros is involved like like Delhi, Mumbai and Chennai because the swipe machine will get connected quickly and it will be possible to detect any declined transaction in time. However, in smaller towns where connectivity is an issue, this will prove to be a challenge.
Once the fraud is detected, the airlines will have to follow a tedious legal procedure and such a long-drawn procedure may not be worth it for a declined transaction of small amounts like Rs 200.


Image courtesy wikimediacommons.org

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