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Airlines Reporting Corporation Surety Bond / ARC Bonds

What is an Airlines Reporting Corporation Bond?

  • The Airlines Reporting Corporation Bond or ARC Bond is a surety bond that is required to be posted to become an Airlines Reporting Corporation Accredited Travel Agency. Airlines Reporting Corporation is often abbreviated to ARC. The surety bond amount is $20,000 during the first year of accreditation. By becoming an Accredited Travel Agency, agents are granted permission to issue ARC Traffic Documents on behalf of the Carrier (airline or rail company). The bond guarantees the principal will follow all the rules and regulations prescribed in the Agent Reporting Agreement (ARA).
  • Traffic Documents are considered all industry standard forms and documents (paper and electronic) that ARC may provide to Agent, including Carriers’ own traffic documents provided to ARC for processing reporting, settlement and administration. Examples of ARC Traffic Documents includes Prepaid Ticket Advices (PTAs), Automated Ticket/Boarding Passes (ATBs), and 4-flight manual tickets.
  • The Airlines Reporting Corporation provides Accredited Agencies access to financial settlement services, credit card and service fee processing programs, business and marketing products and services, and fraud prevention solutions.  
  • We can also write Travel Agency Bonds, which are different from ARC Bonds.

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  • ARC Surety Bonds are individually underwritten so the cost can vary and is primarily dependent on the credit score of the applicant as well as experience; sometimes, but rarely, personal financials and business financials may be required depending on credit standing. Customers with good credit scores could qualify for a rate as low as 1% of the bond amount. Of course, we will always provide you with the lowest rates available on the market. And can typically handle all credit types — from excellent to poor — as such those terms vary.
  • For example, applicants with great credit scores (generally 680 or higher) could pay as low as $200 per year for a $20,000 bond.
  • For the first year of accreditation, the surety bond amount is set at $20,000. For the second year the bond amount is calculated as the average monthly net cash remittance as determined for a 12-month period or $20,000, whichever is greater. After the first 2 years of accreditation the surety bond amount will be calculated as the average monthly net cash remittance as determined for a 12-month period or $10,000, whichever is greater. The bond amount is always calculated 5 months prior to the anniversary date of the bond. The maximum bond amount after one year is $70,000 unless your Agency has Associate Branches. If your Agency has one or more Associate Branches the minimum bond amount is $70,000 and the maximum bond amount is $150,000

Airlines Reporting Corporation surety bonds are in place to ensure travel agents fully and properly pay the ARC, rail, and airline companies for any tickets or transactions made via the ARC’s GDS (global distribution system). In addition, the surety bond protects the ARC and Carriers from unethical business activity, including theft and fraud, by a travel agent or agency.

The Airlines Reporting Corporation requires a surety bond to be posted in order to become an ARC Accredited Travel Agency. Therefore, the Obligee on the bond is the Airlines Reporting Corporation.

The ARC bond is continuous and runs in full force from the effective date until canceled, which can be done with 30 days notice to the Obligee from the Surety company. The bond will be renewed and billed for on an annual basis for as long as the agency maintains their ARC accreditation. It is likely that variations on business volume each year will require a different bond amount than the previous year.

  • Contact The ProSure Group. As surety bond experts in business over 23 years in Florida, The ProSure Group has handled numerous of bonds of this type and has partnerships with more than 30 different surety companies. This ensures that we get you the best, most competitive pricing and terms available in the marketplace. You just need to complete our simple application and one of our specialists will quickly contact you.
  • We can also help you with these bond needs:

What you will need to submit to become a new accredited agency:

  • New Accredited Agent Application
  • Application fee of $2,000
  • $20,000 Surety Bond
  • Proof agency meets the ticketing security standards of Section B of the Industry Agents’ Handbook
  • Proof personnel meets the standards noted in Part II-8 of the ARA which includes the designation of one person as the Management Qualifier and proof that one person has passed the ARC Specialist exam
  • Agency must be located in and authorized to conduct business in the United States, the U.S. Virgin Islands, Puerto Rico, or American Samoa
  • And more.
If you don't see the bond you're looking for give us a call at (800) 480-3883 and speak to one of our many
Airlines Reporting Corporation (ARC) Surety Bond Experts!
Type Bond Obligee Bond Amount
Miscellaneous Airlines Reporting Corporation Surety Bond (ARC Bond) Airlines Reporting Corporation
Varies