chargebacks at hotels – how can you avoid them?

The first step is to make sure you have a system to respond to chargebacks.

Q: How quickly do I have to respond to chargebacks?
A: within 10 calendar days

The most common scenario is for your payment processor to fax a copy of the complaint. The clock is ticking. Many lose money by simply not responding in time. Then the retailer looks up the details in their files, or sometimes online.

With the right processing solution, you can streamline this and reduce lost money from slow response time. For example, we recommend all hotels use a processor that has an automated response system. Chargebacks are directed to the merchant account electronically and the required response is sent automatically. With a proper set-up, instead of losing money by not responding in time, 80% or more of potential chargebacks are eliminated without any intervention by your staff at all!

You’d think this would be common, but it’s not. Many, many processors are not set up with the more advanced technologies to enable auto-responding, and even if the processor offers it, the person who set up your account may not have been trained to set you up properly.

One last note- you can be notified via email (you set up the parameters) of chargebacks, their status, and even manage them from a single online console, creating a valid record of all actions. The more advanced systems let you upload documents that support your response.