Recording a chargeback on a payment

A chargeback is when money is returned to someone who already paid it. In our case, your guest would get their money back, after they already paid you.

If you receive a chargeback, for an entire payment or part of it, reporting it in Guesty will help you show the owner you can't pay them money you no longer have. It will also help you see if a guest still owes you money.

When you add the chargeback, the reservation's credit card is marked as "invalid", and any pending auto payments are blocked unless you add a new payment method to the reservation. We recommend asking the guest why they issued the chargeback to decide if you should collect a new credit card from them. If you suspect fraud, we recommend canceling the reservation.

Follow the instructions below to record a chargeback in Guesty and note that:

  • you can only add a chargeback to payments that are processed through Guesty, not payments that are collected outside of Guesty and only recorded in Guesty.
  • the chargeback can't be reversed. We recommend adding it only when you are sure you are not going to get the money back. 

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Step by step:

  1. Sign in to your Guesty account.
  2. In the top navigation bar, click the mode selector and select Financials mode.
  3. Click Reservations.
  4. Select the reservation that received the chargeback.
  5. Click Balance due/Payout in the banner at the top of the page.
  6. Scroll down to the "Payments" section.
  7. On the relevant payment, click Payment actions, then Record a chargeback.
  8. In the pop-up, fill in the following details:
    • Amount: How much money was returned to the guest. By default, this will be the original amount of the payment. You can enter a new amount, but it must be smaller than the original amount.
    • Date: When the money was returned to the guest. By default, the date will be today, i.e., the day you are adding the chargeback. You can enter a new date, but it must be a past date compared to today.
    • Chargeback reason: Why the money was returned to the guest. By default, this will be set to "Fraudulent". You can select a different reason from the drop-down menu, based on the payment processor's decision. 
  9. Click Record.

A new column "Chargeback" will appear on the payment line, and will be added to the reservation's balance due.

To view details of the chargeback, click on the payment line to expand, then click "Disputes" from the menu to the left.

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