Chargebacks: The Hidden Leak in Your Revenue — Are You Checking Yours?

Did you know that the hospitality industry faces millions in lost revenue every year due to chargebacks? Even more surprising — most of these losses could be prevented with the right management strategies!

Chargebacks happen when a guest disputes a charge, often claiming fraud, dissatisfaction, or misunderstanding. But here’s the catch: up to 80% of chargebacks in hospitality can be challenged and won — if you take action in time!

Fun Facts About Chargebacks:

• 50% of travelers admit they have disputed a charge at least once, even if valid.
• Friendly fraud (when a guest mistakenly or dishonestly disputes a charge) makes up 60%-80% of all chargebacks.
• Hotels that actively monitor and respond to chargebacks recover thousands in lost revenue each year!

Your Secret Weapon: The Chargebacks & Disputes Tab!

RoomRaccoon gives you an all-in-one Chargeback & Disputes Tab to track, manage, and respond to chargebacks in real time. The sooner you act, the higher your chances of winning disputes and keeping your hard-earned revenue!

Pro Tips to Avoid & Overcome Chargebacks:

✅ Clear Payment Terms & Conditions – Make sure guests understand your cancellation, refund, and charge policies before booking anywhere - verify that your Terms & Conditions are explicit in your booking engine & OTA channels.

✅ Strong Payment Authentication – Use 3D Secure and other fraud prevention tools to verify transactions. Offer prepaid rates in the booking engine, demand the due amount fully paid in the online check-in, send a payment request, or take an in-person payment with a card machine instead of manually charging a stored card when it is not a no-show or cancellation scenario. The majority of chargebacks happen for charges not authenticated by the cardholder.

✅ Detailed Guest Communication – Send clear invoices and booking confirmations with all charges explained, as well as a copy of the Terms & Conditions. Make sure your documents are properly tailored to meet your needs.

✅ Real-Time Monitoring – Check your Chargebacks & Disputes Tab daily to act fast and increase your chances of winning disputes.

✅ Keep Guest Records – Store signed agreements, check-in details, and proof of service to support your claims. When a chargeback happens, you are the one to prove the dispute wrong, and the card brands use to take the cardholder’s side by default!

By adopting these practices, businesses can reduce the financial and reputational impacts associated with chargebacks.

Don’t let chargebacks eat into your profits! Make it a habit to check your Chargebacks & Disputes Tab every day — your revenue will thank you.

Need help understanding chargebacks? Our team is here to guide you. Start tracking today and protect your business!