The IATA Myth Holding Back Your Airline Payment Strategy

Spoiler alert: IATA doesn’t block virtual card payments to airlines. That decision? It’s all up to the airline and many are choosing the smarter route.

Why This Myth Persists

There’s been confusion in the travel payments space for years about whether IATA restricts virtual cards. But here’s the truth: IATA guidelines offer frameworks for agency-airline settlement, not hardline rules on acceptable payment methods.

This means airlines are free to choose whether to accept virtual cards, just as they choose which GDS to use or which partners to work with. And in a competitive, post-pandemic travel economy, that freedom has never been more critical.

Virtual Cards Are Gaining Ground

Far from being restricted, virtual card usage is accelerating, driven by benefits like:

• One-time use numbers that reduce fraud risk
• Automated reconciliation
• Customisable controls per transaction
• Real-time spend visibility

In fact, industry reports suggest the global virtual card market will exceed $17 trillion by 2029, with travel as one of its fastest-growing verticals according to Juniper Research.

WEX Helps Airlines and Travel Intermediaries Move Faster

At WEX, we’re at the forefront of payment transformation. Our virtual card infrastructure empowers travel intermediaries to build stronger relationships with airlines by offering faster settlements, streamlined reporting, and smarter cash flow controls.

We understand the complexity of the airline distribution system and we know how to optimise payments within it.

So next time someone says “IATA rules block virtual cards,” you’ll know better, and you’ll know WEX has the tools to help you make better payment decisions.