Airline Reporting Corporation - ARC Surety Bonds

The ARC Surety Bond is required by airlines and the Airlines Reporting Corporation and assures that travel agencies will forward payment when tickets are purchased. The Airlines Reporting Corporation grants the travel agent access to the ARC system and for the distribution of airline tickets.

The bond is to ensure that agencies that sell airline tickets forward any payments they receive from travel customers through the ARC system. If the payments are not forwarded, a claim can be placed against the bond.

ARC bonds fall under commercial surety and is considered a license and permit bond. The bond is considered continuous and must remain in effect the as long as the agency receives payments for airline tickets.

Obligee of ARC Bonds

The "obligee" is the entity requiring a surety bond. The Airlines Reporting Corporation (ARC) is the obligee requiring those who sell airline tickets to be bonded. An application is not considered to be complete until a security, such as a surety bond, is received by the ARC.

The ARC bond only covers those who sell airline tickets, where a similar bond, the Seller of Travel Bond, covers other types of services to travelers.

The Airlines Reporting Corporation or ARC serves travel agents and agencies, airlines and corporate travel departments. It collects data from around 60 percent of the world's travel tickets.

Agencies need to have at least one staff member who is accredited to deal with ARC functions.

An ARC specialist (AS) has completed an extensive certified training program. An ARC Specialists Qualifier (ASQ) has been designated by the agency to handle ARC matters.

What is Needed to Get My ARC Bond?

In order to avoid delays in processing ACR applications, the following must be correct:

1. Each agent and CTD applicant must obtain a minimum $20,000 surety bond, letter of credit, or cash security deposit.
• Surety bonds must be issued by a surety company. SuretyGroup.com is licensed to write ARC surety bonds in all 50 states.
• The bond number must be included on the surety bond form.
• The surety bond amount may be reduced to $10,000 after two years of business. Bond amounts can range from a minimum of $10,000 to a maximum of $70,000 based on the average monthly net cash volume over a twelve-month period.
2. Approved agents must provide their home office agency number (ARC number) to the surety issuing the bond. Non-branch pending applicants or a pending applicants must put "pending" in the space for agency code numbers.
3. Agency's correct full legal name.
4. Airlines Reporting Corporation must be shown as the Obligee.
5. The stated bond amount.
6. Same of the surety and an original seal.
7. Original signature of attorney-in-fact.
8. Original power-of-attorney.

Since an ARC bond is considered risky, the rate for the premium generally ranges from 1% to 5% of the bond amount. The risk comes from fraudulent agents that do not forward the payments as they should. Although there are few claims ever filed against an ARC bond, those that are filed tend to be high and may exceed the bond amount.

How Much Does an ARC Bond Cost?

The premium you pay for an Airlines Reporting Corporation (ARC) Bond is dependent on credit. Rates start as low as 2% for good credit.

To get your ARC bond today, complete the application for a free, no obligation quote. We have access to multiple sureties to get you the lowest rate possible, offer fast service and the bond can be issued the date of purchase.

Did You Know?

An ARC Specialist must continue their certification with annual continuing education.

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