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Dubspec, can see your point on this but we would need to see the...

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Killa68

827 Posts.

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13/09/17

17:40

Post #: 27194664
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Originally posted by dubspec ↑

Thats not the risk i talk about. In merchant acquiring, they access prepayment risk. Ie, if i pay for a good today abut the service/product is delivered in 60 days then there is a 60 prepayment risk. Its more if the airline doesnt deliver the service or goes bust and the merchant (in this case APT) is tthen inundated with chargebacks. The simple calculation most banks use is .. (prepaymentdays/365)*sales. As you can imagine, with airlines, this risk starts to become very large. The acquiring bank wants security to cover this risk. So how will APT provide that security?

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Dubspec, can see your point on this but we would need to see the agreement to comment. I would think the merchant risk would be staying with Jetstar and its bankers as they have "made the sale". All APT has done is prepaid them on the purchasers behalf and then collected same cash from purchaser. Simplistic I know - suggest the technicals of merchant risk would be best taken up with APT's CFO

APT Price at posting: $4.38 Sentiment: Hold Disclosure: Held
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