Credit Card Disputes and Chargebacks

[BTW]

We've been in business for almost 3 years and have had maybe 10 CC disputes against us. Always a surprise, they arrive in the mail ....again, ALWAYS a surprise. The reason we emphasize "surprise" is that we can't understand why folks don't just ASK us? So the BS arrives in the mail ...we look at each other and say, "They were nice folks ...told us how much they enjoyed it here, left a good review ....so WHAT THE HELL?"
Of course you know, you have to look everything up (dispute paperwork always so cryptic) and then supply the CC company with all kinds of supporting evidence and of course there's always a short deadline to you have to make it priority.
I have researched the "fair credit billing act" and other place on the Internet and it appears that the law says that consumers must FIRST attempt to work things out with the merchant (make an effort) BEFORE initiating a dispute. AMAZING, why wouldn't the CC company, when they receive a phone call to start a dispute ASK the consumer, "Have you contacted the merchant first?" Does everyone lie?
So .....my real question. We'd like to make a policy where if you initiate a dispute with us and YOU LOSE, we can then charge you a $25 "you just wasted our damn time" fee. As well, we want to somehow report folks that initiate disputes and do not make an effort to resolve the dispute with us but instead go straight to their CC company.
Thoughts .....experience, knowledge? THX

 

[BTW]

REALLY only looking for feedback on the subject of us being able to create a policy, guests agree to those policies and the policy would state, "If you dispute and lose, we charge you a $25 fee"

 

[NC Innkeeper]

What are your guest disputing?
I tried looking up information on charge backs and found more from the customers point and not the merchants
Last year I had one and this year one no show in which I charged their card. I then waited thinking once they saw their bill they would call or I would hear from their cc company. Neither time did I thankfully.
So my question is; what do we need to provide to defend our actions of charging their card? Phone records proving they didnt call to cancel?

 

[BTW]

What are your guest disputing?
I tried looking up information on charge backs and found more from the customers point and not the merchants
Last year I had one and this year one no show in which I charged their card. I then waited thinking once they saw their bill they would call or I would hear from their cc company. Neither time did I thankfully.
So my question is; what do we need to provide to defend our actions of charging their card? Phone records proving they didnt call to cancel?.

Exactly, major PITA
My point .....I don't care what they dispute or how they dispute it. My point is that if we're gonna play your game (risk) then I should benefit when you LOSE (and my time). AND, until I get really hard confirmation, apparently it is illegal (against the law) for them to contact their CC company without giving the merchant a "reasonable chance" to resolve the dispute.

 

[Morticia]

What are your guest disputing?
I tried looking up information on charge backs and found more from the customers point and not the merchants
Last year I had one and this year one no show in which I charged their card. I then waited thinking once they saw their bill they would call or I would hear from their cc company. Neither time did I thankfully.
So my question is; what do we need to provide to defend our actions of charging their card? Phone records proving they didnt call to cancel?.

Exactly, major PITA
My point .....I don't care what they dispute or how they dispute it. My point is that if we're gonna play your game (risk) then I should benefit when you LOSE (and my time). AND, until I get really hard confirmation, apparently it is illegal (against the law) for them to contact their CC company without giving the merchant a "reasonable chance" to resolve the dispute.
.

I'm imagining the second chargeback based on the fee. ;-)
Are you willing to contact the guest to ask what changed? Why did their happy stay (quote the review) suddenly devolve into telling their credit card company they want their money back? (My guess is they overspent on vacation and know they can't get the money back from the car or the flight, so they go for what they assume is the person who can't fight back.
I think some people are afraid of confrontation so they would rather call the card company first.

 

[Generic]

We have only EVER had one... and it was a fraud. We even sent MC a picture of the person who committed the fraud and his MO. But from the list that we saw, we were the least hit from the fraud... some people got taken for a LOT more. But I don't do third-party billing and I want to see a physical card.

 

[JimBoone]

REALLY only looking for feedback on the subject of us being able to create a policy, guests agree to those policies and the policy would state, "If you dispute and lose, we charge you a $25 fee".

I assume all of us have guests sign in or register when they arrive, I would include your copy above the signature line on the sign in or registration document, at least you'd have their signature on a written document agreeing to your terms. If nothing else it may plant the idea in the mind of the guest that they should take the complaint up with you before making a dispute. Now would that make a difference, I don't know, but from shear size the processor has the advantage over the small operator.
Over 25 plus years, I've used several different processors, perhaps I've learned and changed my way of doing things over that time as well. During one of those changes in processors the program used by the credit card terminal swapped from a sales type program to a hotel or lodging type program, the terminal asks more questions, I don't claim to know all the differences, but my understanding is the processor knows the customer can't return last night's lodging in the same manner you return the shirt you purchased yesterday.
Is it the type of program or account my processor placed us in or am I too lax in charging my guests, I don't know that answer, but it has been years since I have had a charge back.

 

[BTW]

All good stuff folks.....again, we really don't care that they dispute or what they dispute about (because we'll win a very high majority). I only care about wanting to charge THEM for taking up my time with something stupid.

 

[Kayaker]

REALLY only looking for feedback on the subject of us being able to create a policy, guests agree to those policies and the policy would state, "If you dispute and lose, we charge you a $25 fee".

Hi. In my opinion, putting a "dispute and lose" policy in writing would be a turn-off to potential guests. It would be as if you are inviting or challenging people to dispute cc charges. If you are having a lot of trouble with chargebacks on a regular basis, this may be an indication that you are somehow attracting the type of guest who is prone to do that. And who is that? I am not qualified to say. My guess would be someone who is looking for the cheapest deal in town or someone who has not stayed at a B&B before.

 

[Tom]

REALLY only looking for feedback on the subject of us being able to create a policy, guests agree to those policies and the policy would state, "If you dispute and lose, we charge you a $25 fee".

Hi. In my opinion, putting a "dispute and lose" policy in writing would be a turn-off to potential guests. It would be as if you are inviting or challenging people to dispute cc charges. If you are having a lot of trouble with chargebacks on a regular basis, this may be an indication that you are somehow attracting the type of guest who is prone to do that. And who is that? I am not qualified to say. My guess would be someone who is looking for the cheapest deal in town or someone who has not stayed at a B&B before.
.

Agree, it's a red flag and I'd wonder how bad your place was to have to integrate charge back charges into standard booking procedures.

 

[BTW]

All great thoughts and comments folks ....appreciate the feedback. Cheers