AkjetBlue From United States of America, joined Dec 2003, 790 posts, RR: 4 Posted (10 years 9 months 2 weeks 6 days 23 hours ago) and read 6232 times:
ROMULUS -- Put away the cash on a Spirit Airlines flight. It isn't any good.
It's not that the low-fare carrier is giving away booze and food. They just insist fliers pay with a credit or debit card.
Spirit, Detroit Metropolitan Airport's second largest carrier, switched from cash to plastic a week ago, using hand-held, wireless credit card scanners for onboard transactions.
It's easier for flight attendants, convenient for fliers and allows the airline to track every purchase made, Spirit President and Chief Operating Officer B. Ben Baldanza said in a recent interview.
"We now have real-time data on what sells and doesn't sell aboard our planes," he said. "We can be smarter on our inventory control and stock planes with what passengers really want."
Spirit's move is another blow to the greenback as America edges toward a cashless society that economists have long predicted. Consumers now pull out the plastic to pay for everything from a Big Mac to a taxi fare.
After flying into Detroit from New York City Thursday, passengers gave the new policy mixed reviews.
"I was surprised when the flight attendant made the announcement," said Rick Sablesak of Long Island, N.Y., who was flying with his teenage son to weekend hockey camp in Hazel Park. "It's kind of sick to think you can't buy something with cash."
Paula Mallind of Manhattan, flying with her two small babies to visit her parents in St. Clair Shores, liked the ease of swiping her card without worrying about change.
"I think it's a smart idea," she said. "I'd much rather use plastic to pay for the items."
Spirit is using new wireless technology developed by Commerciant LP, a Houston-based company that specializes in wireless payment systems and mobile business process service industry.
The crew can't transmit the sales data and credit card numbers while in the air, but once the plane lands the information is downloaded to Commerciant computers. The company forwards the data to a bank and the information is posted on a special company Web site that Spirit can access.
"Other airlines are looking at wireless systems, but we believe Spirit is the first to actually use one," said Eric Gensheimer, vice president of sales for Commerciant LP.
Baldanza said Spirit hasn't forgotten about passengers who don't have a credit card. The airline is working with a company to develop heavy paper cards with a magnetic strip on the back that can be passed through a credit card reader. Passengers would buy the cards at a Spirit ticket counter or an airport kiosk to use on flights.
"Once these cards are developed, we'll put a card with a couple of dollars on it in an unaccompanied minor pack," Baldanza said. "It's not likely a 10- or 12-year-old will have a credit card, but they still could purchase a soft drink or snack."
Baldanza said with its flexibility, the airline could be a little more creative about onboard amenities, such as in-flight entertainment. He also envisions eventually offering immediate upgrades.
Does that mean if a traveler happens to be placed in a seat between two burly football linemen in coach that the customer could be instantly upgraded to a bigger seat with the swipe of a credit card?
JetBlueAtJFK From United States of America, joined Jan 2005, 1687 posts, RR: 3
Reply 2, posted (10 years 9 months 2 weeks 6 days 22 hours ago) and read 6170 times:
Sounds like a good idea, I fly the LGA-DTW-LGA route alot and it is helpful to speed up things because it is 1 hr and 20 mins and it is short when they want to get out drinks and the snack packs for buyers, so it will be an easier flight for F/A's and easier for passengers, instead of wasting time to get out cash.
Can't wait until I get to fly on the A319's.They are finally on the LGA-DTW-LGA run!!
DLKAPA From , joined Dec 1969, posts, RR:
Reply 4, posted (10 years 9 months 2 weeks 6 days 22 hours ago) and read 6054 times:
Next we will see an ordering system right in the seat you are sitting in. At the beginning of the flight, you swipe your card with what you want, and as the f/a comes down the aisle, it's already been paid for, and he/she already knows what you want.
DeltaMIA From United States of America, joined Feb 2004, 1672 posts, RR: 16
Reply 7, posted (10 years 9 months 2 weeks 6 days 20 hours ago) and read 5895 times:
Quoting Luv2fly (Reply 6): Maybe it was over shadowed by Songs IFE! Oh wait that was not available when they first started flying now was it.......
No it wasn't, but that has nothing to do with using your credit card to purchase food on board.
While NK is moving into the 22nd century you can still use cash onboard DL and Song flights along with your credit card.
It's a big building with patients, but that's not important right now.
Uaalltheway From , joined Dec 1969, posts, RR:
Reply 9, posted (10 years 9 months 2 weeks 6 days 20 hours ago) and read 5865 times:
That's really interesting, thanks for the link.
Personally I think it's a great idea, as long as they have those prepaid cards (issued by the airline) before too long. It will help the airline keep inventory, stock items, with ordering, etc. It's a great idea!.. i don't know why someone didn't think of it sooner.
Lrgt From United States of America, joined Jul 2004, 718 posts, RR: 0
Reply 10, posted (10 years 9 months 2 weeks 6 days 19 hours ago) and read 5759 times:
Quoting DLKAPA (Reply 4): Next we will see an ordering system right in the seat you are sitting in. At the beginning of the flight, you swipe your card with what you want, and as the f/a comes down the aisle, it's already been paid for, and he/she already knows what you want.
JAFA From United States of America, joined Aug 2003, 782 posts, RR: 3
Reply 12, posted (10 years 9 months 2 weeks 5 days 22 hours ago) and read 5307 times:
What a load of B.S.!!! THe real scoop is this: This is so low paid flight attendants don't steal the money. And before anyone jumps all over me, this is a problem at all airlines and businesses that accept cash. I fail to see how accepting ONLY plastic is faster than cash. If they were looking after the interest of cutomers then they would accept both cash and credit. I don't blame Spirit one bit for doing this. After AirTran started the credit only policy, liquor revenue jumped over 200%. Hmmm....
ExFATboy From United States of America, joined Jul 2003, 2974 posts, RR: 8
Reply 14, posted (10 years 9 months 2 weeks 5 days 14 hours ago) and read 5068 times:
Quoting TomFoolery (Reply 11): Maybe I'm misunderstanding it, but isnt that to mean that a Federal Reserve Note must be accepted as a means of settling a debt of trade? Buying a beer, cocktail, etc?
As a general rule, yes - if someone complains loudly enough I wouldn't be surprised to see the government intervene here.
My understanding has always been that companies cannot refuse to accept currency, although they can refuse to accept large-denomination notes if it would pose an exceptional security risk. This is how businesses with highly exposed staff (like 24-hour gas stations where one cashier is in the little glass booth at 3 AM) can legally refuse to accept bills larger than $20s, as having large amounts of money in the till to make change with would make the cashier a more tempting robbery target. Since aircraft are extremely secure places (it's not like someone can rob a FA and run out the door!), I don't see how airlines could qualify for this exemption.
Unless there has been a change in the law recently - I've noticed that FedEx offices in Manhattan have "no cash accepted" signs on the door, and I've always wondered how they got away with that. I've always just presumed that no one has ever bothered to challenge them on it. Anyone on here from FedEx who can shed any light on this?
Wjcandee From United States of America, joined Jun 2000, 6044 posts, RR: 22
Reply 15, posted (10 years 9 months 2 weeks 5 days 13 hours ago) and read 5018 times:
Quoting JAFA (Reply 12): After AirTran started the credit only policy, liquor revenue jumped over 200%
My recollection is that actual liquor consumption, however, did not actually increase, tending to support the poster's point. It's very very hard to control the cash on a flight, and we have all seen how hard the f/a's often have to work dealing with change. I also believe that making the process simpler for the f/as may indeed lead to those later beverage services being conducted with more reliability.
Question I thought that United States currency was legal tender for all debts. Some businesses or governmental agencies say that they will only accept checks, money orders or credit cards as payment, and others will only accept currency notes in denominations of $20 or smaller. Isn't this illegal?
Answer The pertinent portion of law that applies to your question is the Coinage Act of 1965, specifically Section 102. This is now found in section 392 of Title 31 of the United States Code. The law says that: "All coins and currencies of the United States, regardless of when coined or issued, shall be legal-tender for all debts, public and private, public charges, taxes, duties and dues."
This statute means that all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor. There is, however, no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise. For example, a bus line may prohibit payment of fares in pennies or dollar bills. In addition, movie theaters, convenience stores and gas stations may refuse to accept large denomination currency (usually notes above $20) as a matter of policy.
Quote: Title 31 (Money and Finance), Subtitle IV (Money), Chapter 51 (Coins and Currency), Subchapter I (Monetary System), Section 5103 (Legal Tender) of the United States Code states:
United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues. Foreign gold or silver coins are not legal tender for debts.
What this statute means, in the words of the United States Treasury, is that "[A]ll United States money . . . is a valid and legal offer of payment for debts when tendered to a creditor. There is, however, no Federal law mandating that a person or organization must accept currency or coins as for payment for goods and/or services."
That's it. All this means is that the Federal Reserve System must honor U.S. currency and coins, not necessarily anyone else. U.S. currency and coins can be used for making payments, but a debtor does not have to pay in legal tender, nor does a creditor have to accept legal tender.
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PVD757 From United States of America, joined Aug 2003, 3466 posts, RR: 15
Reply 18, posted (10 years 9 months 2 weeks 5 days ago) and read 4819 times:
In any transaction there is an exchange, or simply put, two sides. The loop-hole is that they can simply refuse to provide the product or service (in this case a nip bottle of Jack) in axchange for cash. The airline can just refuse to accept the terms of the transaction as cash for booz, not neceassrily refuse the legality of the tender.