This research paper examined the current practices, challenges, and prospects of usingrncredit cards as a payment method by Ethiopian Airlines and it is done by adoptingrnconcurrent mixed research approach. Qualitative methods were employed by means ofrninterviews and review of related documents while quantitative methods were used throughrnsurvey of sales agents, area managers, officers and senior managers on the area. A total ofrn65 questionnaires were distributed to officers and managrs and 47 were collected and 6rninterviews were conducted with directors and managers of the airline and that of merchantrnbanks.rnThe main findings of the study were that the internal control systems of the airline are notrnadequate enough to prevent card frauds and mitigate the credit card financial risk.rnAdequate and recurrent trainings for operational and back office staff on credit cardrnacceptance and fraud prevention and having well-organized credit card desk with skilledrnand sufficient man power are the main critical success factors that are not either inrnexistence or are not effective.rnManagement of the airline threfore, need to take immediate corrective action to thernincreasing threat of card fraud by means of provision of awareness and recurrent trainingrnfor operational and back office staff; implementing the latest fraud screening and fraudrnprevention tools in all of the airlinesâ€™ sales cahnnels; establish well-organized credit cardrndesk with well trained and suficient staff; establish clear policies and procedures with clearrnassignment of responsibilities among operational and support staff; and ensure that therernis seamless and integrated system.rnKey words: Card payment industry; chargeback, card fraud, payment method, merchant,rnissuing bank, card schemes