When managing multiple guests and vacation rental bookings, there may be situations where a payment dispute arises. To help you better understand and protect yourself from cancelled payments due to chargebacks, we put together a quick guide for reference.
A chargeback is when a traveler asks their bank or credit card provider to cancel their payment, usually due to a poor experience. While chargebacks are rare, they can occur after any credit card transaction. After a chargeback is initiated by a traveler directly with their credit card provider or bank, the deadline to dispute the request can be as soon as within 72 hours.
With thousands of issuers and several credit card networks, the outcome of a dispute can never be guaranteed, and credit card networks own the final decision. Fortunately, few travelers abuse chargebacks, and credit card networks have built-in protections to prevent fraudulent behavior.
The best way to prevent chargebacks is to consider a traveler’s perspective and address any concerns beforehand that could possibly cause a chargeback. Ask yourself: if you were in a traveler’s position, would you expect a refund or feel misled by the listing?
Our platform also protects from chargebacks in two ways:
When describing your property, be as accurate as possible. “Property not as described” is the second most frequent reason for successful chargebacks — and one of the hardest to dispute.
Other frequent reasons travelers give for initiating chargebacks are “denied access to the property” and “due a refund.” Here’s how to set clear expectations to help avoid disputes:
Chargebacks are often referred to as “the nuclear option,” meaning they should only be used as a last resort. That’s why great customer service can really help in preventing chargebacks.
The best practice to follow in case of any disputes is thorough documentation. Always document with specificity any issues with guests that may relate to these topics:
Sometimes it will be necessary to discuss potential disputes with travelers face to face or by phone. In these cases, you should always create a summary of the conversation afterwards for documentation.
Use the secure messaging system to send your summary to the traveler to review and sign. The summary should also include any amount due or refunded, and the reason. Taking the time to document important conversations can prevent future misunderstandings.
Learn more about traveler chargebacks.
