Payment disputes
A chargeback occurs when a cardholder disputes a payment made on their credit or debit card. This can happen because of an unauthorised charge or an incorrect amount,
Whether the cardholder is a customer, guest, or someone who believes their card was used at your property without their permission, it’s your responsibility to prevent and resolve these disputes.
What is a chargeback?
A chargeback is a refund issued by a cardholder’s bank or card issuer to reverse a payment made using a credit or debit card.
If your customer disputes a payment and their bank initiates a chargeback, the disputed amount will be withdrawn from your Little Hotelier Pay balance.
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The disputed amount is withdrawn from your Little Hotelier Pay balance immediately.
You will receive an email from Little Hotelier Pay informing you of the dispute. This email will contain 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 7–21 days’ time).
You will need to reply to the email attaching your necessary evidence.
Little Hotelier Pay will submit the evidence on your behalf to the cardholder’s bank or card issuer.
The cardholder's bank or card issuer will review the evidence, which may take up to 75 days.
The cardholder’s bank or card issuer makes their decision and Little Hotelier Pay sends your property an email with the outcome.
If the dispute is resolved in your favour, the funds are returned to your Little Hotelier Pay account, if not, the funds are kept by the cardholder who raised the dispute.
Notes:
You can partially win a dispute, in which case you and the cardholder each receive a portion of the disputed amount.
In some instances you can’t challenge a dispute, however Little Hotelier Pay will notify you if a dispute can be challenged.
How do I challenge a chargeback?
You may need to provide evidence to Little Hotelier Pay to dispute the chargeback. This evidence will be forwarded to the cardholder’s bank or card issuer to prove the payment was valid.
Follow the instructions in the email from Little Hotelier Pay to submit your evidence.
Evidence includes:
Signed check-in document
Invoice
Copy of the guest’s identification
Booking records, communications and reservation information
When do I need to submit evidence for a chargeback?
Most banks require evidence within 7–21 days of receiving the dispute. If you miss the deadline to provide evidence, you will lose the dispute by default. The deadline for the dispute will be sent in the dispute email.
Who decides the outcome of a dispute?
The cardholder’s bank or card issuer determines the outcome of the dispute. Little Hotelier Pay assists by presenting your case and evidence to the cardholder's bank or card issuer. However, we don’t influence the case. 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.