What is the purpose of issuing a credit memo by an ARC participating carrier?

• A. To issue an ARC accredited agency a commission payment
• B. To recall a commission
• C. To collect a commission amount that was incorrectly taken on a previous ticket transaction that was reported and processed
• D. To issue a refund to the customer

Answer: (A)

The main idea is that a credit memo is how a participating carrier pays the agency for earned commissions. When a carrier owes Commission to an ARC-accredited agency, they issue a credit memo to document and initiate that commission payment to the agency’s account. It’s not used to recall a commission, or to collect back a previously taken amount, or to issue a refund to the customer. Those actions are handled through other processes or documents.