Chargebacks

What are chargebacks?

A chargeback occurs when a cardholder asks their bank to reverse a payment for a specific reason. When such a dispute is raised, the final outcome isn't always clear, as there are thousands of issuers and several credit card networks - each with their own rules and processes for dealing with chargebacks. Credit card networks have the final decision on whether or not to agree with a chargeback request.

Fortunately, chargebacks are rarely abused in the vacation rental industry. Credit card networks and most of our partner channels also have protections to prevent misuse, keeping both you and your earnings secure.

How do they impact you?

We will do everything within our systems and processes to protect you from chargebacks. Depending on the reason the guest has used to raise the chargeback, sometimes we can try to defend the claim. Other times, we are unable to.

If we successfully defend a chargeback, there will be no impact for you. If we are unsuccessful in defending a chargeback or are unable to defend the claim, we need to recover this from you either from future bookings or via a direct payment.

What can you do as an owner?

As a property owner, there are steps you can take to reduce the risk of chargebacks:

• Ensure your listing accurately reflects your property, including photos, descriptions, and location.
• Remove amenities that are broken or unavailable to avoid disappointing guests.
• Clearly communicate your house rules so guests know what to expect.
• Keep records of any damage and related conversations with guests.

Common chargeback reasons

1. Service Not as Described

Guests may claim the accommodation wasn’t as advertised. This can happen if:

• They are unable to stay and want a refund, or

• They complete their stay but are unhappy and request a full or partial refund.

These claims are usually easier to defend, especially if the guest doesn’t show up. Travelnest can provide evidence from booking channels to prove the property was available as listed.

After submitting evidence, there is a 60-day waiting period for the card network to make a decision.

• If the claim is denied, there is no impact on you.

• If the claim is accepted, we may need to recover the payment made to you.

2. Fraudulent Card-Not-Present Transactions
This happens when a guest claims they didn’t authorise the transaction. Because the cardholder isn’t present, it’s not possible to verify the claim.

• We cannot defend these chargebacks.

• If the claim is accepted, we will need to recover the payment made to you.

What does Travelnest do if we receive a chargeback? 

• We will notify you within 10 days of receiving a chargeback.

• If we can defend the chargeback, we may ask for additional information from you.

• If the chargeback is resolved in your favour, there is no impact.

• If the chargeback is successful or cannot be defended:

  • The amount is initially charged to Travelnest.

  • We will confirm the outcome with you.

  • We recover the payment from your future bookings or via direct payment.

  • If your future bookings don’t cover the amount, we request repayment via bank transfer.

Further information

For more details about chargebacks, see WorldPay – What is a chargeback?