More Airlines Accept Credit Cards for Onboard Purchases

Many airlines have begun to accept credit cards for onboard purchases. For frequent travelers who rely on their credit cards, it is good news because the change in the airlines' payment policy lets them not withdraw cash for the trip. Thus they can reduce the possibility to become a victim of crimes who like pick pocketing in unfamiliar, tourist-heavy areas. In addition, paying with plastic allows business or leisure travelers to track and record their spending for budget planning, reimbursement or tax purposes more easily.

Who hasn't felt guilty giving a busy flight attendant $20 for a $5 glass of red wine and waiting while he or she were running around the cabin and asking other passengers for change? On most airlines, now you are free to pay for food, alcoholic beverages, entertainment and other goods or services with your credit card. Using hand-held wireless credit card machines, flight attendants will swipe your plastic through in a few seconds with no signature required.

Airlines that accept credit cards only include JetBlue, Frontier, Midwest, AirTran, Virgin America and Spirit. Such carriers as Delta and American accept cash, credit cards and debit cards. Continental airlines accept cash only, but you can buy Continental Currency coupons at airports with your credit card and use them for onboard purchases.

The latest carrier that joined the cashless cabin is Alaska Airlines. It will stop accepting cash on August, 5. In order to promote the change, the company is offering 10 miles per dollar spent for travelers who pay for their purchases during the flight with an Alaska Airlines Visa card with airlines rewards.

The change in the payment policy will help airlines survive in the tough economic environment. Fuel prices double what they were a year ago, making airfares skyrocket. That caused passengers look for cheap discount airlines or wait for ticket sales. Air companies try to find new ways to get profit. They turn to so called ''ancillary revenues'' - money raised from things other than selling tickets. It can be everything from commissions on rental cars to selling duty free goods. For example, Ryanair, a big European discount carrier, sells vacation rentals, life insurances and scratch cards for gambling.

It is a well-known fact that plastic money gives passengers more purchasing power and flexibility in comparison with cash. Accepting credit cards onboard will help carriers generate more revenue because people tend to spend more money when they pay with a credit card. Plus, getting rid of cash makes the process of accounting and tracking what sells and what doesn't easier.

If you want to take most of the change, consider applying for a frequent flyer credit card. Many carriers offer additional miles for people who pay with their co-branded credit cards for onboard purchases. Credit card issuers team up with one carrier or with a variety of different airlines. For example, if you prefer to fly with Delta, you can apply for Gold Delta SkyMiles from American Express. JetBlue fans will like JetBlue Card from American Express. If you don't have a favorite airline, you can still find a credit card that will suit you.