Chargeback

A chargeback is a forced payment reversal initiated by a guest's bank or credit card issuer when the guest disputes a vacation rental charge. Common chargeback reasons include unauthorized transactions, services not rendered, billing errors, or guest dissatisfaction. Chargebacks are costly for property managers — beyond losing the booking revenue, each chargeback typically incurs a processing fee of $15 to $100 and, if the chargeback rate exceeds industry thresholds, can result in higher processing rates or account termination. To prevent chargebacks, managers should maintain clear cancellation policies, send detailed booking confirmations, document guest check-ins, and communicate proactively about any additional charges. When a chargeback is filed, responding quickly with comprehensive documentation is critical for a successful dispute.