A chargeback is a forced payment reversal initiated by a guest through their bank, disputing a hotel charge. The hotel loses the funds temporarily and must present evidence, such as signed folios and cancellation policies, to win the dispute.
Typical hotel chargebacks come from no-shows charged under a cancellation policy, unclear incidental charges, fraud on stolen cards and guests who do not recognize the merchant name on their statement. Each dispute carries a fee on top of the contested amount.
Prevention beats fighting. Clear policies at booking, itemized folios, pre-authorization instead of surprise charges and a recognizable merchant descriptor remove most disputes. For the rest, responding quickly with documented evidence within the network's deadline is what decides the outcome.
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