Travelers Opting to Chargeback When Their Refund Request Fall’s On Deaf Ears
Credit-cards, also known as plastic currency, have become a modern mode of trade. People use it more often in order to have a record of payments made. Credit cards are also being used by the travelers to avoid disputes. Whatever the reason be, travelers are turning to this option to resolve their issues with car rental companies, airlines, hotels prompting credit-cards disputes. Due to this reason, travelers consider the chargeback option.
Chargebacks are on the verge of rising when it comes to traveling sector. A chargeback in simple words is the withdrawal of funds that were previously deposited in the merchant’s bank account and applying for credit back to the credit card or account. You may also call it a reversal of your charges. The use of credit cards is also in the favor of the consumers because of the fact that all the payment can be refunded.
Take the example of Edward Margolis, an Indianapolis Financial Consultant who canceled his plans to fly from Tel Avis to Las Vegas earlier this year. The airline agent assured him that he is very likely to receive a refund since he has canceled his ticket within 24 hours. When he didn’t receive, he contacted his credit card company to reverse the payment. Under the Fair Billing Act, you can dispute a charge for goods or services you didn’t accept or that were not delivered to you on the agreed date and time. If the bank has your back, the money is refunded instantly.
The chargeback rate of the travel industry is more than double as compared to the average of other industries. Travel also has the highest value disputes. An average dispute costs $18 and the next highest category is the department stores averaging $8.
Your chances of succeeding in a travel related dispute are better than average. The industry-wide success rate for merchants is 41 percent. But since you don’t have to swipe your card for travel sector but make the charge by phone or online; your chances of winning are better. Banks tend to favor the customers in case of disagreement when a card isn’t physically present.
According to the banks, chances of fraud are higher when it comes to the travel sector. Companies offering travel packages and hotel booking services can be dispute free for all. However, having a strong case helps. Chargebacks are usually thought of as a last resort. Filing a chargeback without proper justification falls under the definition of fraud and sometimes, it is also termed as a friendly fraud.
The timing for filing for the chargeback is important in the case of dispute. You would not want to file a dispute too early as it could lower your chances of winning and disrupt your tour.
Contact us to discuss a better way to handle travel club merchant account chargeback issue’s and reduce your potential chargeback liability.
High Risk Merchant Account LLC
915 Folly Road, Suite 49
Charleston, SC 29412