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Are you curious about the ins and outs of Airbnb chargebacks? The landscape of Airbnb transactions can be puzzling, but fret not; we’re here to make it easy.
This article will break down the complexities of Airbnb chargebacks. Upon completing this article, you will know all about Airbnb chargebacks.
In addition, you will be equipped with insights to tackle any potential challenges you might face. This article would serve as a straightforward guide.
Let’s dive into the world of chargebacks and ensure you’re well-prepared for any issues that may arise.
Understanding Chargebacks
A chargeback is also called a reversal. This usually occurs if a customer disputes a purchase made through his or her credit card.
This dispute is often accompanied by a claim that the purchase was made fraudulently, there was a billing error, or the service provided was not as promised.
If you dispute a purchase, your credit card company will investigate the charge, and if it is not valid, your funds will be reversed.
This means that the business’s account would be debited. If your bank rules against you and holds that the charge is valid, you will not be getting a reversal.
It is pertinent to note that this process is complicated, time-consuming, and requires a lot of paperwork and documentation.
When you file a chargeback, it can take up to 90 days for your bank to resolve it; it may also take less time.
What Happens When You File a Chargeback for an Airbnb Transaction?
Airbnb has processes in place to handle chargebacks. If you initiate a chargeback with your credit card provider, Airbnb will be notified by the payment processor.
Airbnb would then investigate the claim by reviewing the transaction details and interactions between the guest and the host.
Depending on the review, the host will have to provide the necessary information to either validate or refute the chargeback. When the process is ongoing, your bank may temporarily pay the disputed amount into your account.
This is called a provisional credit. Please note that a provisional credit does not mean that you have won the chargeback.
If the bank decides that the charge from Airbnb was valid, the funds deposited into your account may be taken back by the bank and returned to the host.
Please note that Airbnb does not have the power to resolve the dispute directly, and the refund will come from the bank.
If the chargeback is deemed valid, the host’s payout may be adjusted. Some guests try to take advantage of the system and file fraudulent chargebacks at every given opportunity.
This is why disputed funds are investigated thoroughly.
The Impact of Chargebacks on Hosts
When guests initiate chargebacks, they are often hard on hosts, both emotionally and financially, as this means that their payment may be reversed if it is deemed that the charge was not valid.
Such a host would have to provide evidence in order to show that the charge was valid. If this is unsuccessful and it is deemed that the charge was not valid, then the money charged would have to be forfeited.
How to Dispute a Charge with Airbnb
If an Airbnb host charges you for something you are not meant to pay for, you can dispute the charge. When you rent a property from an Airbnb host, the price and other relevant information will be presented to you upfront.
The only circumstance where you ought to be charged more than the agreed price is when you change your reservation.
For instance, changing your dates, adding an extra guest, or when the host charges you for any damage caused during your stay at the property. If you were charged for something you believe you shouldn’t have been charged for, you can either open a dispute with Airbnb or dispute the charge directly with your bank.
Opening a Dispute with Airbnb
All you have to do is go to the resolution center, fill in the necessary information, and upload relevant documents.
A staff member would review the details provided and try to mediate between you and the host. If this doesn’t work, then the other option is to dispute the charge directly with your bank.
How to Dispute an Airbnb Charge with Your Bank?
Banks have different processes for this. Some banks accept disputes via calls, and some others accept them via email. Banks also allow you to initiate the dispute online via the bank’s website.
However, you can contact your bank’s customer service department and inform them that you would like to reverse the charge.
The customer service rep will provide you with the requirements and how your bank handles this issue. When the bank makes a decision, both the guest and the host have the right to escalate the issue further.
The only problem is that this will be costly for whoever loses the dispute.
What Kind of Charges Can You Dispute?
The Fair Credit Billing Act gives you 60 days from the day you receive your bill to dispute a charge. Below are the kinds of charges you are permitted to dispute under the act.
These are charges that you did not permit.
For instance, if someone uses your credit card to make a purchase and you do not authorize this purchase, If you report the theft of your card, then you won’t be responsible for charges that are made afterward.
The Fair Credit Billing Act limits your liability to 50 dollars for unauthorized charges.
2. Billing Errors
This is a charge that a merchant made by mistake. For instance, being charged twice for a payment you have already made. Billing errors also include:
- Charges for services or products that were not delivered as promised
- Mathematical errors
- Charges that state the wrong date or amount
- Services that were not provided
3. Merchant Error
You can make a dispute under this category if you are not satisfied with the service or product provided.
This doesn’t mean that you can just dispute the charge for any service or item that doesn’t tickle your fancy. This service or item has to be subpar. For instance, if the service provided is not as advertised.
So, if the charge you received from Airbnb falls under any of the above, you have 60 days to dispute it.
How to Ensure That Your Dispute Is Successful?
Ensuring the success of a chargeback dispute requires a strategic approach. You have a pretty decent chance of successfully disputing the Airbnb transaction. Below are some tips to ensure that your dispute is successful.
1. Avoid Frequent Chargeback Requests
While it may be tempting, avoid disputing every single charge without conducting due diligence.
You have a great chance of succeeding in your first chargeback, but continuously filing chargebacks will reduce your chances of having a successful case.
Continuously filing cashback may also lead to the termination of your credit card account. You should be very careful and always ensure that any request you make is warranted and not just based on impulse.
2. Keep Relevant Documentation
You have to be very meticulous when keeping documents. Every bill or invoice you receive in relation to your Airbnb transaction should be stored.
Keep them in an accessible format, for instance, using Google Docs. Proper documentation can help you win the dispute. It is important to keep everything in writing.
3. Ensure That the Chargeback Is Covered under the FCBA
The Fair Credit Billing Act was enacted in 1974 to protect individuals from unfair credit billing practices. You have to ensure that the chargeback is covered under the FCBA.
This has already been outlined in a previous section of this article. If you have documentation that proves that the service provided wasn’t delivered, this suffices.
Ensure that while you are at the rental, you document everything that is out of place.
Conclusion
Succeeding in a chargeback dispute requires a strategic blend of persuasive evidence, timely communication, and patience. You have to have a transparent dialogue with your bank, as this is key.
There is no need to be scared about this; just follow the tips outlined in this article, and you will be good to go.
