Anyone experience this with a chargeback?

[tar4heel2]

Interesting topic; we are going through this right now. We have had a cancelation and a no-show in the last few months. We gave no refunds, and just like you, the guest filed a chargeback. The first chargeback is default awarded. If the merchant appeals and wins, the chargeback is returned to the merchant. After that, the guest has an opportunity to take it to arbitration. This is where we heard EXACTLY the same thing you did; that is, the guest will probably win and you, as loser, will have to pay the arbitration fees on top of 100% refund. The message is "give it up" It was almost the exact same verbiage you heard! So, I am reading this post with a microscope. The CC processor is telling us we have a weak case because we have no signature required on the cancelation policy. We have a cancelation policy on the website, but no electronic signature is required. (We are in the process of changing this this week...) So... the question is, how does the airline industry deal with this problem? Airlines are "NO REFUND" merchants. How do they structure their customer purchase process to stand up in court or arbitration? BTW, all our competition has the exact same cancelation policy, that is, no refunds (100% forfeiture of the entire reservation) if you cancel within 30 days of arrival or are a no show. How are you guys dealing with this?

 

[Arks]

Interesting topic; we are going through this right now. We have had a cancelation and a no-show in the last few months. We gave no refunds, and just like you, the guest filed a chargeback. The first chargeback is default awarded. If the merchant appeals and wins, the chargeback is returned to the merchant. After that, the guest has an opportunity to take it to arbitration. This is where we heard EXACTLY the same thing you did; that is, the guest will probably win and you, as loser, will have to pay the arbitration fees on top of 100% refund. The message is "give it up" It was almost the exact same verbiage you heard! So, I am reading this post with a microscope. The CC processor is telling us we have a weak case because we have no signature required on the cancelation policy. We have a cancelation policy on the website, but no electronic signature is required. (We are in the process of changing this this week...) So... the question is, how does the airline industry deal with this problem? Airlines are "NO REFUND" merchants. How do they structure their customer purchase process to stand up in court or arbitration? BTW, all our competition has the exact same cancelation policy, that is, no refunds (100% forfeiture of the entire reservation) if you cancel within 30 days of arrival or are a no show. How are you guys dealing with this?.

So... the question is, how does the airline industry deal with this problem? Airlines are "NO REFUND" merchants. How do they structure their customer purchase process to stand up in court or arbitration?

Good question! I know we've discussed here before about how to get a proper "electronic signature" through our website, but I don't know if anybody ever did it.

 

[Breakfast Diva]

Interesting topic; we are going through this right now. We have had a cancelation and a no-show in the last few months. We gave no refunds, and just like you, the guest filed a chargeback. The first chargeback is default awarded. If the merchant appeals and wins, the chargeback is returned to the merchant. After that, the guest has an opportunity to take it to arbitration. This is where we heard EXACTLY the same thing you did; that is, the guest will probably win and you, as loser, will have to pay the arbitration fees on top of 100% refund. The message is "give it up" It was almost the exact same verbiage you heard! So, I am reading this post with a microscope. The CC processor is telling us we have a weak case because we have no signature required on the cancelation policy. We have a cancelation policy on the website, but no electronic signature is required. (We are in the process of changing this this week...) So... the question is, how does the airline industry deal with this problem? Airlines are "NO REFUND" merchants. How do they structure their customer purchase process to stand up in court or arbitration? BTW, all our competition has the exact same cancelation policy, that is, no refunds (100% forfeiture of the entire reservation) if you cancel within 30 days of arrival or are a no show. How are you guys dealing with this?.

So... the question is, how does the airline industry deal with this problem? Airlines are "NO REFUND" merchants. How do they structure their customer purchase process to stand up in court or arbitration?

Good question! I know we've discussed here before about how to get a proper "electronic signature" through our website, but I don't know if anybody ever did it.
.

So... the question is, how does the airline industry deal with this problem? Airlines are "NO REFUND" merchants. How do they structure their customer purchase process to stand up in court or arbitration?

Good question! I know we've discussed here before about how to get a proper "electronic signature" through our website, but I don't know if anybody ever did it.

We changed our website. After the trauma of having to take the guests to small claims after CC denied us due to not having anything to prove they had read and agreed to our policies for phone reservations, we changed our website to create an electronic policy approval. It was easy for us because we use intell-a-keeper (an Acorn product) and on the homepage there is a logo that says "reservation confirmation". When clicked, it takes you to another small window with boxes to type in your name and innkeeper passcode. There is also a 'submit' button. I had Acorn add text underneath the 'submit' button that states when they click the button, it means they have read and agree to our policies...I had them also add a link right there that takes them to our policies.
Once they click the 'submit' button, I receive an e-mail with their info and that it went through the system. This works great, but as I said, it was already in place on our website, I just needed to have text added.
Mostly what I do now though is just tell them that I'm not in my office and they need to make an online reservation. I will even help them on the phone make the online reservation if they need help.
For those who don't have a reservation tracking system on their website, I would imagine it woudn't be too difficult to add some sort of area where the guest would have to fill in a short form so that they have to approve your policies and an e-mail is sent to you.
Unfortunately, in this day and age, we need to cover our a**es more than ever.

 

[Arks]

It would be nice if Res Key could handle this for all their users at once, by building a real, secure, enforceable digital signature into the reservation system. It would help not just with the cancellation policy, but also charging the CC for other policies, like damages, smoking in the room, etc.

 

[Breakfast Diva]

It would be nice if Res Key could handle this for all their users at once, by building a real, secure, enforceable digital signature into the reservation system. It would help not just with the cancellation policy, but also charging the CC for other policies, like damages, smoking in the room, etc..

The problem really isn't with the website or the reservation system, it's with the credit card companies. They're the ones allowing the card holder to weasle out of it. They will always side with the card holder regarding charging for damages since they state in their agreements that it's not allowed.

 

[Copperhead]

Interesting topic; we are going through this right now. We have had a cancelation and a no-show in the last few months. We gave no refunds, and just like you, the guest filed a chargeback. The first chargeback is default awarded. If the merchant appeals and wins, the chargeback is returned to the merchant. After that, the guest has an opportunity to take it to arbitration. This is where we heard EXACTLY the same thing you did; that is, the guest will probably win and you, as loser, will have to pay the arbitration fees on top of 100% refund. The message is "give it up" It was almost the exact same verbiage you heard! So, I am reading this post with a microscope. The CC processor is telling us we have a weak case because we have no signature required on the cancelation policy. We have a cancelation policy on the website, but no electronic signature is required. (We are in the process of changing this this week...) So... the question is, how does the airline industry deal with this problem? Airlines are "NO REFUND" merchants. How do they structure their customer purchase process to stand up in court or arbitration? BTW, all our competition has the exact same cancelation policy, that is, no refunds (100% forfeiture of the entire reservation) if you cancel within 30 days of arrival or are a no show. How are you guys dealing with this?.

So... the question is, how does the airline industry deal with this problem? Airlines are "NO REFUND" merchants. How do they structure their customer purchase process to stand up in court or arbitration?

Good question! I know we've discussed here before about how to get a proper "electronic signature" through our website, but I don't know if anybody ever did it.
.

So... the question is, how does the airline industry deal with this problem? Airlines are "NO REFUND" merchants. How do they structure their customer purchase process to stand up in court or arbitration?

Good question! I know we've discussed here before about how to get a proper "electronic signature" through our website, but I don't know if anybody ever did it.

The CC companies have different policies for the hospitality industry. As I think Maddie stated earlier in the thread, they are siding with the one that pays the most $ - with some interest rates @ 18% you want to keep that customer purchasing. Some hotels have as little as a 1% fee so there is no contest if the chargeback issue is not CLEARLY the customers fault.