Why Hotels Get Chargebacks

Why Hotels Continue to Lose Fraud Chargebacks

If you find yourself losing chargebacks, the first question to ask is if you utilized an EMV chip card terminal at the time of check in. This is often the deciding factor in winning or losing your fraud chargeback. If you don’t dip the chip card at check in, you cannot prevent loss from fraud chargebacks. Using EMV will help shift the fraud liability off of your hotel and onto the cardholder’s bank, but this does not protect businesses from all chargebacks.

The Misconception About “No-Shows”

If someone does not show up for their reservation, the misconception is to charge them for the full period that they had booked. The rules for no-shows only allow businesses to charge for the first night that the person was not there. When you charge for the extended period of the stay is when you will lose those chargeback cases. Be careful how you charge for the no-show, following the specific rules such as listing the no shows and making sure the cardholder name matches the cardholder number.

Want to know more? Get in touch with our chargeback team.

Email Chargebacks@FortisPay.com or call (855) 465-9999

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