Other Fraud - Card Absent Environment
What does it mean?
The cardholder claims they didn’t make this purchase or didn’t allow someone else to use their card. Since the transaction happened online or over the phone (without swiping or inserting the card), the bank sees this as a “card not present” situation and may treat it as fraud.
How should you respond?
Provide any evidence of guest verification. It should indicate that the cardholder specifically authorized the transaction. This can include the ID of the cardholder, image of the card displaying the name and last 4 digits, selfie holding ID, etc. Any messages to the guest’s phone number or email address could also be beneficial in a dispute package.
How to avoid this dispute in the future
Require names to match across the reservation, billing information, and requested ID.
No Cardholder Authorization
What does it mean?
The cardholder is claiming that they do not authorize the use of their card. This can be handled very similarly to Other Fraud - Card Absent Environment.
How should you respond?
Provide any evidence of guest verification. It should indicate that the cardholder specifically authorized the transaction. This can include the ID of the cardholder, image of the card displaying the name and last 4 digits, selfie holding ID, etc. Any messages to the guest’s phone number or email address could also be beneficial in a dispute package.
How to avoid this dispute in the future
Require names to match across the reservation, billing information, and requested ID.
Merchandise or services not received or not as described
What does it mean?
This is a service-related reason code, and indicates that there was either a problem with the stay, or that the "service" (the rental booking) was not provided. This encompasses situations where goods or services were counterfeit, not provided at all, not as described, or defective. The reason for the issue (whether the stay was not provided, the quality was sub-par, the accommodation was misrepresented, or there were defects in the property or services) could not be prevented by the guest, according to this reason code
How should you respond?
Include any communication that was had with the guest, especially any communications regarding reported issues (pool wasn’t working, property was in bad shape, etc). Provide photos of the property as the guest would have experienced it, which should also match the pictures on the listing. Keep logs of when the guest keys in, or provide any photos of them entering/leaving the property if there are cameras at the property.
How to avoid this dispute in the future
Ensure with photo evidence that the property is in good condition between each stay. These pictures can be taken by the cleaners, or request them from guests upon check-in. Make sure the listing accurately reflects the property, including all furniture and amenities. Proactively reach out to guests on their first or second day to ask if the rental is meeting their expectations and if there are any “questions or concerns”. This shows that the host is willing to help, and opens the line for communication or any remediation prior to the guest filing a chargeback.
Cancelled Merchandise/Services
What does it mean?
The guest had requested to cancel their stay, but did not receive a refund. This could be because their request falls outside of the cancellation policy, or because the refund was not issued in a timely manner after their request to cancel. This reason code can be handled very similarly to Goods/Services Cancelled.
How should you respond?
Provide every instance where the cancellation policy is shown to the customer both before and after the transaction takes place. The dispute should show that the customer was aware of the terms of their purchase prior to any money being transacted.
How to avoid this dispute in the future
Issue refunds in a timely manner and stay up-to-date with all guest communications. Have a lenient refund policy in place - it is much better to “lose” the income via a refund instead of a chargeback. Some merchants opt to offer a credit for a future stay, but this does not hold much weight in the case of disputing a chargeback. Make sure that the cancellation policy is easily accessible in multiple locations on the listing/website.
Merchandise/Services Not Received
What does it mean?
This reason is used when a cardholder claims they did not receive the services they purchased. In the case of short term rentals, this means that the guest did not stay at the property during their booked dates. This reason code can be handled very similarly to Goods or Services Counterfeit / Not Provided / not as Described or Defective.
How should you respond?
Provide all guest verification that took place, indicating that the cardholder was aware of the purchase made with their card. Include all communications with guests, especially any responses they had regarding their stay. If there is a log of when guests key in, or cameras on the property, also include that as proof that the property was accessed (“service was received”).
How to avoid this dispute in the future
Have a lenient refund policy in place and issue all refunds ASAP after requested by the guest. Refunds are not automatically processed with all cancellation requests, so cancellations must be reviewed regularly to see if they are eligible for a refund. Some merchants opt to offer a credit for a future stay, but this does not hold much weight in the case of disputing a chargeback. Make sure that the cancellation policy is easily accessible in multiple locations on the listing/website.
Card Not Present
What does it mean?
This chargeback reason only indicates that the original transaction took place in an environment where the physical card was not required (such as an online or phone order). This reason code unfortunately does not specify if the claim was fraud-related or service-related.
How should you respond?
Provide all evidence possible that could indicate that the cardholder authorized the purchase, and that the service (booking) was provided and met guest expectations. Evidence can include: guest verification such as an ID, messages sent to and received from the guest, keypad logs to indicate that the property was accessed by the guest, photos/footage showing the guest at the property, etc.
How to avoid this dispute in the future
Have a thorough verification process for all guests, regardless of how expensive or long their stay is. Proactively reach out to all guests during their stay to ask if there have been any issues, and offer to solve them.
Duplicate Processing
What does it mean?
It means that the cardholder claims that a single transaction was processed more than once.
How should you respond?
- If the transaction in question is not a duplicate:
Provide the invoice as displayed to the customer and indicate the full cost of the booking. Also include the policy as shown to the customer, that states that the cost of their booking will be charged as two separate parts. This policy should be shown to the customer before completing their transaction
- If the transaction was, in fact, a duplicate and you have already processed a credit/refund for the transaction:
Provide documentation proof of the credit or reversal; include the amount and the date it was processed in addition to the cardholder’s details, transaction ID, and any relevant correspondence confirming the refund or reversal.
- If you have resolved directly with the cardholder and they no longer wish to dispute the transaction:
Provide a letter or email from the cardholder that shows they no longer dispute the transaction.
- If the transaction was, in fact, a duplicate: Accept the chargeback, no need to dispute.
How to avoid this dispute in the future
- Clearly display transaction timing and policies in multiple places during the booking process. They should be clearly displayed to the customer both before and after the transaction is completed.
- Avoid entering a transaction more than once. If you do enter a transaction twice, credit the duplicate as soon as possible and inform the cardholder in writing to avoid chargeback attempts.
- Review transaction receipts before depositing.
- Train your sales staff on the proper procedures for processing transactions, including how to credit/refund duplicate transactions.
Goods/Services Cancelled
What does it mean?
The guest had requested to cancel their stay, but did not receive a refund. This could be because their request falls outside of the cancellation policy, or because the refund was not issued in a timely manner after their request to cancel. This reason code can be handled very similarly to Cancelled Merchandise/Services.
How should you respond?
Provide every instance where the cancellation policy is shown to the customer both before and after the transaction takes place. The dispute should show that the customer was aware of the terms of their purchase prior to any money being transacted.
How to avoid this dispute in the future
Issue refunds in a timely manner and stay up-to-date with all guest communications. Have a lenient refund policy in place - it is much better to “lose” the income via a refund instead of a chargeback. Some merchants opt to offer a credit for a future stay, but this does not hold much weight in the case of disputing a chargeback. Make sure that the cancellation policy is easily accessible in multiple locations on the listing/website.