|HOTEL CREDIT CARD CHARGEBACKS|
According to the AHLA the most common reasons that guests dispute credit card charges:
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.
Visit us at: www.audithotel.com
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