MCO

Miscellaneous Charge Orders 

Initial MCO vs Residual MCO

 Initial MCO 

Issued directly from credit card, cash, or check.

 Residual MCO

Created from remaining value of an eligible ticket exchange.

Residual MCOs may be issued when:

·         A non‑refundable ticket is exchanged, and a remaining value exists

·         A fare reduction or downgrade creates remaining value after penalties

·         The exchange falls within the validity period of the ticket / MCO

General Eligibility

·         Valid on AA/001 for American Airlines, American Eagle, and American Airlines codeshare flights (AA*/oneworld or other partner airlines).

·         At least one AA prime segment (flight marketed and operated by AA) must be included in the itinerary.

·         No point of origin or routing restrictions apply.

·         MCOs are automated in the GDS when issued as a straight sale against a form of payment (credit card, cash or check)

·         Accepted in any currency and must be converted to the currency of the new ticket being issued.

·         Only the issuing agency may apply the MCO.

·         MCOs may be used toward any fare type, subject to the applicable fare rules.

Ineligible uses of MCOs

The following transactions are prohibited regardless of available value.

·         Optional services such as baggage, seats, upgrades, or penalty fees.

·         Ticketing via any American Airlines channel (Reservations, aa.com, etc.)

·         Reissues of American Airlines issued tickets

·         Offsetting penalty fees on exchanges.

·         Creating a new throw-away ticket or issuing a new MCO to extend validity.

·         Paying a Debit Memo.

Debit Memos will be issued for violations

Initial MCO Validity

·         An MCO is valid for one year from the date of issue.

·         Once the MCO is exchanged for ​a ticket we ​consider ​it a form of payment and ​therefore it is unrelated ​to ​ticket validity

o   Example:

MCO was issued 26JUL2025 is valid for one year from the issue date

The agency exchanges the MCO for a new ticket on 25JUL2026, within the MCO validity period.

Once exchanged, MCO ​assumes the ​new ticket's one-year validity. Therefore, ​both ​the MCO ​and ​the ​new ticket ​are valid until 24JUL27

MCOs may not be used to create a new throwaway ticket or a new MCO to extend its validity. Debit Memos will be issued for violations

Residual MCO Validity

·         Valid for one year from the date of issue.

·         If used in a subsequent exchange that generates additional residual value within its validity, a new residual MCO is issued with a new one‑year validity.

·         Must show NONREF and reference the original ticket number in the endorsement box.

·         The Type of Service or Valid For field must show “RESIDUAL” or “FUTURE”.

o   Example:

Residual MCO was issued 26AUG2024.

Agency applies it toward a new ticket before its expiration date.

Agency exchanges the ticket again on 15MAY2025 with continued remaining value.

New residual MCO validity: 15MAY2025-15MAY2026

For refund purposes, any residual MCO value would be forfeited after expiration (for example, expired 26AUG25)

Using an Initial MCO in an Exchange

·         New ticket value must be equal to or greater than original ticket value plus MCO value.

·         Initial MCOs must be fully consumed, they cannot create residual MCOs.

o   If the value of the new ticket is lower than the combined value of the old ticket, plus the MCO, the MCO cannot be used for the exchange

o   This restriction applies only to initial MCOs; residual MCOs may be issued only from eligible ticket exchanges as outlined in the Residual Value MCO sections below.

Examples

New Ticket Value ≥ Original Ticket Value + MCO Value

Acceptable exchange:

New ticket: $600

Ticket to be exchanged: $500
MCO: $100
Ticket + MCO = $600

Result: Even exchange. No residual is created.

Not acceptable exchange:

New ticket: $400

Ticket to be exchanged: $500
MCO: $100

Result: The new ticket value is lower. The ticket to be exchanged completely covers the value of the new ticket, so there is no need to use an MCO

The MCO must not be used, and no residual MCO may be issued from an initial MCO.

Using a Residual MCO in an Exchange

Residual MCOs follow different rules than Initial MCOs. Unlike Initial MCOs, Residual MCOs may generate another Residual MCO when eligible.

A non‑refundable residual MCO may be applied toward a new ticket for:

·         The same customer or a different customer.

·         Any routing or country of origin.

·         If a residual MCO is applied to a higher‑value ticket, any additional amount or fees must be collected separately using another form of payment.

·         If a residual MCO is applied towards a lower‑value ticket, a new residual MCO may be issued:

o   Valid for one year from the exchange date.

o   Issued in the original or new ticketed customer’s name.

·         A non‑refundable residual MCO may be applied to a refundable ticket; however, the non‑refundable portion remains non‑refundable

MCO Refunds

Eligibility

·         An MCO is valid for refund consideration for one year from its date of issuance.

·         Refund eligibility is determined by the MCO issue date, not the ticket issue date.

·         Expired MCOs are non-refundable

·         If an MCO is used as a form of payment, refund eligibility is based on the type of MCO used.

o   If a residual MCO is used as a form of payment for a non‑refundable ticket, the MCO remains non‑refundable and cannot be refunded once exchanged.

o   If an initial MCO is exchanged toward a refundable ticket and the customer later decides not to travel, or exchanges the ticket for a lower fare, the refund is allowed to the form of payment used to issue the MCO.

If the non-refundable ticket qualifies for a full refund (for example, flight cancellation):

·         The refund request must be submitted via Refund Request.

·         The non‑refundable portion will be refunded by voucher or trip credit.

·         The refundable portion will be refunded to the original form of payment.

Expired MCOs

·         Expired MCOs are non-refundable.

Multiple MCOs

For new tickets:

·         A maximum of two MCOs may be applied to the purchase of a ticket.

o   The first MCO is entered as the Exchange document

o   The second MCO is entered in ARC/IAR REN

o   For assistance in completing your transaction, you may contact ARC Helpdesk at 1-703-816-8003

·         Each MCO may be issued under a different passenger name. Both may be applied towards the same ticket, provided all other eligibility rules are met.

For exchanges:

·         Only one MCO may be used during an exchange transaction

·         Residual MCOs may be created as allowed by the fare rules, but two MCOs cannot be applied at the same time during the exchange.

Printing an MCO

MCOs do not require a physical ticket printer.

Agencies may print MCOs from ARC for record-keeping purposes.

MCO Type Comparison

Initial MCOs and Residual MCOs do not follow the same exchange rules. Most MCO application questions can be answered by first identifying whether the document is an Initial MCO or a Residual MCO. An Initial MCO cannot generate another MCO, while a Residual MCO may generate another Residual MCO when permitted by fare rules

Updated: October 2026