Every year, hotels, B&Bs, and other hospitality businesses lose millions in revenue to chargebacks. The surprising part? Most of these losses can be avoided with the right prevention and dispute strategies.

A chargeback happens when a guest disputes a payment, often citing fraud, dissatisfaction, or a misunderstanding. Here’s the good news: up to 80% of chargebacks in the hospitality industry can be successfully challenged — if you act quickly.

Key Facts About Chargebacks in Hospitality

• 50% of travelers admit they have disputed a charge at least once, even when valid.

• Friendly fraud (guests dishonestly or mistakenly disputing a legitimate charge) accounts for 60%-80% of all chargebacks.

• Hotels that monitor and respond to chargebacks can recover thousands in lost revenue each year.

Your Secret Weapon: The Chargebacks & Disputes Tab

RoomRaccoon’s all-in-one Chargebacks & Disputes Tab lets you track, manage, and respond to chargebacks in real time. The faster you act, the higher your chances of winning disputes and protecting your hard-earned revenue.

Pro Tips to Prevent and Win Chargebacks

1. Clear Payment Terms & Conditions
 Ensure guests understand your cancellation, refund, and charge policies before booking. Confirm that your Terms & Conditions are clearly displayed in your booking engine and OTA channels.

2. Strong Payment Authentication
 Use 3D Secure and fraud prevention tools to verify transactions. Offer prepaid rates in the booking engine, require full payment during online check-in, send a payment request, or accept in-person payments via a card machine. Most chargebacks occur when transactions are not authenticated by the cardholder.

3. Detailed Guest Communication
 Send clear invoices and booking confirmations outlining all charges, along with your Terms & Conditions.

4. Real-Time Monitoring
 Check your Chargebacks & Disputes Tab daily to respond quickly and increase your win rate.

5. Keep Guest Records
 Store signed agreements, check-in details, and proof of service to support your case. Remember: in most disputes, the card issuer will side with the cardholder by default.

By following these practices, you can reduce the financial and reputational impact of chargebacks.
 Don’t let chargebacks drain your profits — make it a daily habit to check your Chargebacks & Disputes Tab.

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