Chargebacks
Information on chargebacks and minimising their occurrence when using RMS Pay.
A chargeback is a payment reversal by the card issuer when the cardholder disputes a transaction on their account.
When a transaction is disputed by the cardholder the payment will be provisionally reversed pending successful defence by the property.
Chargeback Reduction
Disputes on legitimate transactions can be avoided or minimised by implementing the following as part of the procedures at the property:
Transparent & Accessible Policies
Clearly detail the policies relating to payments, refunds, cancellations and no-shows in the Terms & Conditions a guest accepts as part of the reservation process.
Ensure Terms & Conditions are easily accessible on the property's website, online portals, reservation confirmations and any correspondence.
Terms & Conditions can be entered in RMS for the RMS Internet Booking Engine and Guest Portal to be made readily accessible to a guest on both sites.
DeleteRegistration Cards, Photo Identification & Signatures
Guest information can be accurately recorded on the Guest Profile with all guests recorded on the Reservation.
A Digital Registration Card can be setup to collect required information including a signature and a copy of the guest's photo identification which will then be automatically recorded and retained on the Guest Profile and reservation.
Paper Registration Cards must be manually kept on file with the guest's signature and a copy of their photo identification.
A signature from each guest on the Registration Card and the cardholder on any Room Charge Slip, Statements, Tax Invoices, Receipts & Refunds can be kept on file to confirm the cardholder's authorisation of the charge.
Pre-Authorisations, Deposits & Pre-Payments
Payments collected on the RMS Internet Booking Engine, Guest Portal and via securely sent Pay By Links all require 3DS verification by the cardholder before payment is taken when using RMS Pay as the payment gateway.
3DS verification is an additional layer that requires manual input from the cardholder with a secure code provided by the card issuer.
This additional layer of verification confirms the cardholder authorises the transaction on their account.
Taking full payment at the time of reservation on the RMS Internet Booking Engine or directing a guest to complete full payment via a secure Pay By Link or in the Guest Portal includes 3DS Secure verification for the cardholder to verify and authorise the transaction on the account.
A Pre-Authorisation places a temporary hold of funds on a credit card. Funds held by pre-authorisation can be consumed on the Reservation Account using the CC Pre-Auth Token.
A pre-authorisation can be processed via the RMS Pay terminal for the amount pre-set on the payment gateway setup or for an alternative value entered.
A pre-authorisation can be used where the final payment amount is unknown and can be set for the estimated value of the final charge.
Processing the pre-authorisation using the RMS Pay terminal requires the card to be present and provides an opportunity to verify the cardholder's identification and obtain signed consent for the hold of funds on their account.
A Refundable Charge can be used to take payment of a refundable deposit which can be applied to the account or refunded to the card payment was taken from if no incidental charges are incurred.
Refunds
Promptly processing any Refund owed to a guest will greatly reduce the risk of the transaction being disputed.
Delays in refunding can prompt a cardholder to issue a transaction dispute with their bank as a means of getting the money owed back.
Chargeback Management
Chargeback Management is available when using RMS Pay as the payment gateway to simplify viewing, managing and defending chargebacks issued to the property.
The number of days available for a chargeback to be defended will vary based on the card scheme (eg. Visa, Mastercard, American Express) with the supporting documents required determined by the type of transaction dispute by the cardholder.
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