What is a payment dispute?
When a cardholder has an issue with a payment made using their credit or debit card — because they do not recognise it, for example — they can contact their bank or card issuer to dispute it.
For you, this cardholder could be a customer, a guest, or someone who believes that their payment card was used at your property without their permission.
Human error, fraudulent activity — no matter the cause, it is your responsibility to help prevent, and if necessary resolve, any payment disputes.
What is a chargeback?
A chargeback occurs when a cardholder disputes a payment made on their credit or debit card. A chargeback is a refund transmitted by a cardholder’s bank or card issuer to reverse a payment.
If a bank or card issuer initiates a chargeback for a payment dispute on behalf of one of your customers or guests, the disputed amount will be withdrawn from your SiteMinder Pay balance.
What is the payment dispute process?
The cardholder disputes a charge via their bank or card issuer.
The cardholder's bank or card issuer initiates the dispute process.
The disputed amount is withdrawn from your SiteMinder Pay balance immediately.
SiteMinder Pay sends your property an e-mail informing you of the dispute. This email contains key information, such as how — or if — the dispute can be challenged, as well as what evidence you need to submit, and when the deadline is due (usually in 7–21 days’ time).
You reply to the aforementioned email you received from SiteMinder Pay, attaching your necessary evidence.
SiteMinder Pay submits the evidence on your behalf to the cardholder’s bank or card issuer.
The cardholder's bank or card issuer reviews the evidence, which may take up to 75 days.
The cardholder’s bank or card issuer makes their decision, and SiteMinder Pay sends your property an email notifying you of the outcome.
If the dispute is resolved in your favour, the funds are returned to your SiteMinder Pay account; if it is not, the funds are kept by the cardholder who raised the dispute.
Note:
You can partially win a dispute, in which case you and the cardholder each receive a portion of the disputed amount.
There are some instances in which you cannot challenge a dispute. We will notify you if a dispute can be challenged.
How do I challenge a chargeback?
To challenge a chargeback, you will need to submit evidence to SiteMinder Pay — who will then send it on to the cardholder’s bank or card issuer. To do this, follow the instructions in the e-mail sent to you.
Evidence includes:
Signed check-in document.
Invoice.
Copy of the guest’s personal identification documents.
Booking record and reservation details.
Copy of communications between your property and the guest.
When do I need to submit evidence challenging a chargeback?
You must submit evidence to challenge a chargeback as soon as possible, as most banks require you to submit evidence within 7–21 days. The deadline will be stated in the dispute e-mail. If you miss the deadline to submit evidence, the cardholder who raised the dispute will win by default.
Who decides the outcome of a dispute?
The cardholder’s bank or card issuer decides the final outcome of the dispute.
Although SiteMinder Payments plays a role in presenting your case and submitting evidence to the cardholder's bank or card issuer when challenging a dispute on your behalf, we do not — and cannot — determine the outcome.
Once the cardholders’ bank or card issuer makes a decision, it is final. Even if new evidence becomes available, the dispute can’t be reopened.
How can I prevent chargebacks?
Steps you can take to help reduce the number of chargebacks you receive:
Provide accurate photographs and descriptions on your room types, so guests will know what to expect when booking.
Provide up-to-date payment and cancellation policies, and terms and conditions on your booking engine.
Provide contact details to your guests so they will be more likely to contact you before raising a dispute.