All documentation must be provided in English (preferred) or the official language of the country where the card was issued.
A chargeback can be a frustrating and costly experience for businesses, but understanding the process can help you manage and prevent them more effectively. In this article, we’ll explain what a chargeback is, why it happens, and how to reduce your risk of chargebacks, and how the fund recovery process works with Cloudbeds Payments.
How to Deal with Chargebacks
Chargebacks are a common but challenging part of managing payments, and understanding how to handle them effectively is crucial. Whether the guest stayed at your property or not, the key to successfully contesting a chargeback is to address the reason behind the claim.
Focus on the Chargeback Reason
When dealing with a chargeback, it’s essential to focus on the reason given for the dispute.
- For example, if a transaction is disputed as fraudulent, proving that the guest stayed at the property will not suffice. The bank needs evidence that the cardholder authorized the transaction. You’ll need to provide supporting evidence such as signed registration forms or other authorization documents.
- For all cases, gather as much evidence as possible (receipts, communications, signatures), but at the very least, provide documentation that directly addresses the reason for the chargeback.
Cloudbeds' Role in Helping You Contest Chargebacks
When a chargeback or retrieval request occurs, Cloudbeds will notify you immediately. This notification will include the reason for the chargeback, the disputed amount, and the deadline for contesting the chargeback.
You can contest the chargeback through the Cloudbeds Payment Portal. All your evidence will be forwarded directly to the bank for review. We will also provide basic information about the reservation, such as stay dates and the reservation number, to assist with your case.
Please remember that while Cloudbeds assists in sending the necessary information to the bank, we do not control the outcome of chargebacks - the card-issuing bank ultimately makes this decision.
How to Deal with Specific Chargeback Categories
Providing the guest's signature and communication records is crucial for every chargeback, including fraudulent transactions or services not rendered. Here are specific steps for handling different types of chargebacks:
| Category | Recommended Evidence | Key Action |
| Fraudulent Transaction | Signed registration form or signed receipt, plus all communication records. | The bank only cares if the cardholder authorized the charge. Advise caution: If you are confident the charge is fraudulent, it's often best not to contest the chargeback, as disputing fraudulent charges can negatively impact your reputation with the card company over time. |
| Not as Described | A rebuttal letter addressing the claim, plus documentation showing the service was provided as described. | If the service was not rendered as expected, attach your cancellation policy, terms and conditions, and the guest’s signature (if available). |
| Services Not Rendered | Signed registration form proving the guest completed their stay. If the guest did not stay, provide a rebuttal letter and evidence (e.g., cancellation policy, signature) showing why no refund is due. Credit Not Processed Evidence that the transaction was non-refundable, such as a copy of your cancellation policy, terms and conditions, and the guest’s signature. |
Provide documentation to prove the charge was valid and non-refundable per your policies. |
| Credit Not Processed | Evidence that the transaction was non-refundable, such as a copy of your cancellation policy, terms and conditions, and the guest’s signature. | Provide documentation to prove the charge was valid and non-refundable per your policies. |
| Any Other/Generic Reason | A rebuttal letter and any documentation proving the transaction was legitimate, non-refundable, and that services were provided according to your policies. | Submit a comprehensive packet of evidence to support your case. |
Comments
The instructions say "Submit a rebuttal letter for chargebacks" but it doesn't say WHERE to submit it.
It says "provide evidence that the transaction was non-refundable" but doesn't say WHERE to provide this evidence.
I have everything needed but don't know what to do with it.
Hello, Jennifer Ose-MacDonald,
Thank you very much for your valuable feedback! We will review this article to apply the necessary adjustments for clarification.
If you need further assistance, please contact our Support Team.
Regards!
I see my first chargeback. Where is the option to upload documents? Not that it really Matters. In 30 years, I think I have only ever successfully contested 1. Banks and Service Providers rarely side on the side of the business
Hello, Jonathan Hodge,
We have already created a new ticket for you, so that our Support Team can take a closer look at this request and offer dedicated assistance as soon as possible.
When and where do we get the notifications about a chargeback. We have 2 but i never saw any messaging about it. Very likely that I missed it, but just want to be sure.
Please and thanks! :)
Hello Fabio Castiblanco,
I have already created a new ticket for you, so that our Support Team can take a closer look at this request and offer dedicated assistance as soon as possible.
Thank you,
Where is the option to upload proof that the chargeback is not correct. I have 2 disputes open and they are no legitimate. This article provides no information on how to actually dispute the issue.
Hello, Cassidy Browne,
We have created a new ticket on your behalf so that our dedicated team can review your request as soon as possible.
We are also taking note of your suggestions to improve the content of this article.
Thank you!
Hi there, just yet another person who came here hoping to find the steps to respond to a chargeback. Here is an idea: Why not post the steps needed to respond to chargebacks on an article about chargebacks?
Here, I'll start and hope it helps:
From the home screen of cloudbeds, click the three-dash icon in the top left to open your menu. Then click "Payment"
This will default into the "overview" menu on your payments (you may need to contact property owners as this is not always automatically available for all CB users). On the overview, you may see Payment Activity at the bottom, including a tab for Dispute - don't be fooled, this is not the tab you are looking for (said in the voice of Obi-Wan).
Instead, on the very top of this screen under the search bar, click THAT disputes. Now you will see a list with any disputes. Click the three dots on the right hand side to view transaction and a side window will pop up with your options (accept or contest).
Ok, hope that helps!
Hello, Yuval Freincle,
Thank you again for your detailed feedback and for outlining the steps for handling a chargeback. Your suggestion to add this information to the article is excellent, and we appreciate your help to improve our resources.
Our Support Team is the best channel for receiving dedicated assistance, as they can provide specific guidance for a variety of needs. In some cases, we redirect requests to them to ensure that these can be reviewed as quickly as possible.
We've already sent the article to the team for review and incorporated your valuable suggestions.
Thanks again for your contribution!
The majority of our disputes are for duplicate charges. Even though I show the credit card log showing only 1 payment was made, we still lose the disputes. My rebuttal was pages and pages of screenshots plus a lengthy narrative.
Two things would be helpful:
If we lose the dispute and get a chargeback, that creates a balance due. How to get rid of the balance due? Do I need to have a new entity in Payment Options? This isn't really a payment--just the opposite. What is the best way to zero the balance due? Or do I leave it as a balance due in disputes lost.
Also, suggestions for what to submit for evidence if the dispute is regarding a duplicate charge.
Thank you.
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