hotel internal audits

 

HOTEL CREDIT CARD CHARGEBACKS
According to the AHLA the most common reasons that guests dispute credit card charges:
  1. The card was stolen and was presented to the hotel for services prior to it being reported as fraudulent.
  2. The cardholder no shows and fails to cancel a guaranteed reservation, but simply does not want to pay.
  3. The cardholder stays at the hotel facility, but was not satisfied and refuses to pay out of protest.
Responding in a timely manner is the first step in avoiding chargebacks.  If the response is not made within the limited days it was mailed or faxed, then you loose by default.
Best practices is to utilize the merchant online to get immediate notification, tracking activity, and submitting a timely response online.  Transparent record keeping is important with more then one employee reviewing transactions when they occur.
In cases of a stolen credit card or non use of chip reader at the front desk, there is nothing the hotel can really do to avoid the chargeback.  PMS providers are scrambling to provide chip readers which has not yet been fully implemented.  Best practices is to limit same day pre-authorization letters which can be fraudulent cards yet to be reported or direct these requests to third party providers such as (Expedia).
Providing exceptional customer service is the best practice for avoiding guest satisfaction related chargebacks.  Communicating with guests for service issues prior to them  taking steps to protest a charge  avoids chargebacks, and increases guest satisfaction survey scores.
Audit Hotel specializes in hospitality, we review credit card chargebacks transactions with every audit, and recommend best practices to reduce future occurrence.

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john@audithotel.com

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