How can I prevent a traveller chargeback?
A chargeback occurs when a cardholder contacts their bank to initiate a reversal of a payment made on their credit card.
Chargebacks arise for a variety of reasons but generally they are the result of a cardholder changing their mind, being dissatisfied with their purchase, or reporting unauthorized use of their card.
Below are some general tips you can follow to help minimize the chances of a traveller chargeback.
- Use a rental agreement and house rules. Although we follow industry standards in collecting electronic signatures, the most effective form of documentation in disputing a chargeback is a written signature on a paper contract.
- Provide an accurate description of the property.
- For bookings where there is a short period of time between the reservation and arrival, call the traveller and request a copy of the ID of the bank cardholder.
- Try and address any guest concerns timely, before they escalate into a dispute.
- Send a confirmation email to your travellers containing your cancellation policy on every reservation.
- When possible, issue a refund in the same method of payment of the original transaction.