Overview
A chargeback occurs when a cardholder disputes a payment made on their credit or debit card. This typically happens due to unauthorised charges or incorrect amounts. As a property owner, you’re responsible for preventing and resolving these disputes whether they come from customers, guests, or individuals who believe their card was used without permission.
What is a chargeback?
A chargeback is a refund issued by the cardholder’s bank or card issuer to reverse a payment made using a credit or debit card. When your customer disputes a payment and their bank initiates a chargeback, the disputed amount is withdrawn from your Little Hotelier Pay balance.
When a customer initiates a chargeback, the refund is calculated using the current exchange rate, not the rate from when they originally paid. This means if exchange rates have changed between the payment and chargeback dates, you may need to refund more than the original amount to ensure the customer receives their exact payment in their local currency. For example, if a guest paid £100 and later disputes the charge, you might need to refund £110 if exchange rates have shifted, ensuring they receive their original payment's full value.
Payment dispute process
The cardholder disputes a charge through their bank or card issuer
The cardholder's bank or card issuer initiates the dispute process
The disputed amount may be immediately withdrawn from your Little Hotelier Pay balance
You receive an email from Little Hotelier Pay containing:
Information about challenging the dispute
Required evidence to submit
Submission deadline (typically 7-21 days)
You must reply to the email with supporting evidence
Little Hotelier Pay submits your evidence to the cardholder’s bank or card issuer
The cardholder's bank or card issuer reviews the evidence (may take up to 75 days)
Little Hotelier Pay emails you with the decision from the cardholder’s bank or card issuer
If the dispute is resolved in your favour, the funds are returned to your Little Hotelier Pay account; if not, the cardholder retains the funds
Important notes:
Partial disputes are possible, where you and the cardholder each receive a portion of the disputed amount
Some disputes cannot be challenged; Little Hotelier Pay will notify you if a dispute can be challenged
Challenge a chargeback
To dispute a chargeback, you’ll need to provide evidence to Little Hotelier Pay, which will be forwarded to the cardholder’s bank or card issuer to validate the payment.
Evidence includes:
Signed check-in document
Invoice
Copy of the guest’s identification
Booking records, communications and reservation information
Follow the specific instructions provided in the email from Little Hotelier Pay to submit your evidence. Send the email to disputes@littlehotelier.com.
Deadline for evidence to be submitted
Most banks require evidence within 7–21 days of receiving the dispute. Missing the deadline will result in an automatic loss of the dispute. The specific deadline will be included in the dispute email.
Dispute resolution
The cardholder’s bank or card issuer determines the outcome of the dispute. While Little Hotelier Pay assists by presenting your case and evidence, it does not influence the decision. Once the cardholders’ bank or card issuer makes their decision, it is final and cannot be reopened, even if new evidence becomes available.