Short answer: Open the memo in ARC Memo Manager and read the reason the airline gives. Gather the proof that answers that reason, such as the PNR history, the fare rule, the contract or the waiver code, and file the dispute inside the airline's window. Under ARC, a memo settles when your agency pays it.
How does a debit memo reach your agency?
The airline loads it into ARC Memo Manager, and an alert goes to the email your agency keeps on file there. Each memo carries a reason category, a note, the airline's calculation beside your agency's, and up to 14 ticket numbers. Debit memo numbers start with 896.
ARC asks airlines to send each memo to the ARC number that issued the ticket. The ticketing agency answers for it, even when another agency made the booking.
How long do you have to dispute?
Each airline sets its own window, and ARC leaves the number to them. ARC's own best practice suggests a dispute within 30 calendar days of the memo's issue, and an answer from the airline within 30 days after that.
| Airline | Window |
|---|---|
| ARC's suggestion | 30 calendar days from issue |
| Delta | Due on receipt, with valid and timely disputes accepted |
| JetBlue | 90 days from issue, on tickets up to 365 days old |
| Air Canada | Disputes in Memo Manager, answered in about 15 business days |
| Cathay Pacific | Disputes in Memo Manager or by email, answered within 60 days |
Under ARC, a memo settles when you pay it
ARC puts a memo into your IAR sales report once your agency clicks Pay. A memo you leave alone stays open until it reaches the airline's age limit and goes inactive. The airline can reopen it, add late fees, send it to collections or pull ticketing rights.
What proof answers each reason?
ARC's advice is to answer the exact issue the memo raises, and to attach the records that show it: the PNR, the contract, the fare rule or a call recording.
| Reason on the memo | Proof to attach |
|---|---|
| Fare or fare rule | The stored fare quote from ticketing, the fare rule as filed that day, and the PNR history |
| Tax | The tax breakdown the GDS priced, and any exemption cross-referenced on the ticket |
| Booking practice | The PNR history with time stamps, and the traveler's request behind each change |
| Commission | The written contract in force on the ticketing date, and the tour code filed with the fare |
| Refund or exchange | The automated refund or exchange record, and the airline's waiver code in the PNR |
| Waiver | The waiver code on the ticket and in the PNR |
| Card chargeback | Evidence the cardholder took part in the sale, such as a signed card charge form |
How a debit memo moves
- 01The memo arrivesIn Memo Manager, with the airline's reason
- 02Your team opens itARC suggests within 10 business days
- 03Dispute with proofThe status moves to Open-Dispute Pending
- 04The airline decidesIt accepts or rejects the dispute
- 05Pay or dispute againUp to the airline's limit
How do you file the dispute?
- Open the memo in Memo Manager. ARC suggests opening every memo within 10 business days.
- Check the airline's calculation against your own, line by line.
- Click Dispute, write a reason that answers the memo's own, and attach the proof. The status moves to Open-Dispute Pending. A comment on its own leaves the status open.
- If the GDS priced the fare or the tax, give the GDS access to the memo. The GDS can support your dispute, and your agency still files it.
- If part of the memo is right, dispute first and ask the airline to reduce the amount. ARC suggests the airline updates it within 2 business days, and you pay the new amount.
What if the airline rejects it?
Dispute again, up to the airline's limit. Each airline sets how many disputes a memo gets, and ARC recommends three. Ask the airline for its specific reason and for the evidence that would cancel the memo.
ARC suggests both sides agree an escalation contact for memos that fail two disputes. The Travel Agency Arbiter hears a memo case when the airline and the agency both agree to it in writing.
How do you cut the next memo?
- Ask for every waiver in writing, and record its code in the PNR and on the ticket.
- Run refunds and exchanges through the GDS's automated tools. ARC says an automated exchange record outweighs a manual calculation.
- Remove inactive segments well before departure. Delta asks for 24 hours.
- Keep each contract change in writing, with the date it reached you.
- Check memos against ARC's guideline that airlines issue them within nine months of travel or refund.
Common questions
Who decides a debit memo dispute?
The airline decides. ARC carries the memo between the airline and your agency. The airline accepts or rejects each dispute.
What happens if we leave a debit memo open?
It stays open until it reaches the airline's age limit and goes inactive. The airline can reopen it, add late fees, send it to collections or pull ticketing rights.
How many times can we dispute one memo?
Each airline sets its own limit, and ARC recommends three. The Dispute button in Memo Manager greys out once the limit is reached.
Can we pay part of a debit memo?
Yes, through a dispute. Ask the airline to reduce the amount. ARC suggests the airline updates the memo within 2 business days, and you pay the new amount.
Who answers for a memo on a ticket another agency booked?
The agency that issued the ticket. ARC asks airlines to send each memo to the ARC number that issued it. For a multi-branch TMC, that points each memo to the office that issued the ticket.
Sources (12)
Show every source
- ARC, Best Practices for Effective Debit Memo Resolution and Prevention (2023) ARC
- ARC, Memo Manager FAQs ARC
- ARC, Memo Manager questions and answers (2018) ARC
- ARC, Memo Manager user guide for travel agents (2018) ARC
- ARC, How to dispute a memo in Memo Manager (2025) ARC
- ARC, GDS access to memos (2022) ARC
- ARC, Industry Agents' Handbook ARC
- Delta, Debit memo policy Airline policy
- Delta, Booking policy definitions Airline policy
- JetBlue, Debit memo information for travel agents Airline policy
- Air Canada, Debit memo policy for US travel agents Airline policy
- Cathay Pacific, Debit and credit memo policy for US travel agents (2025) Airline policy
Checked on October 26, 2026. Rules change, so check the source before you act on a date or an amount.
