Credit Card Fraud
Blog by Glenn Gairdner, September 2020
As we promote our properties to the New Zealand domestic market we need to remind ourselves about credit card security and potential fraud. It was very concerning to receive a call from a member who had recently had a dishonest guest stay in June. After the guest checked out they told the bank they had never stayed at the property and wanted to dispute the credit card charge.
Banks will apply the following procedures when a cardholder disputes a charge. They will contact the business and ask for evidence that the credit card charge was valid. They will want to ensure that the business had authority to process the charge, and they will ask for documented evidence.
Many of you will be thinking this is a lot of procedural steps when checking someone in and I totally agree. However by following these steps you will help to minimise fraudulent credit card use. You would need to elevate the risk within your own business and decide what steps to follow, however we should all have clearly defined terms and conditions on our website advising customers around the procedures you require.
Another good and easy step to take is to record the guests vehicle registration number, the bank will not use this as evidence but you may be able to track the guests down should they have provided false contact details.
You may not choose to follow these steps at all times and only apply when you feel necessary. The most important thing to remember is that you need to demonstrate you had authority to charge the card regardless if the guest checked in or failed to arrive such as a no show reservations.
Maybe this is a good time to review your terms and conditions (T&C's) on your website and other booking platforms, ensuring you have outlined your credit card and check in procedures along with your cancellation and no show policies. Under most booking platforms when a guest is making a reservation will need to tick that they have read and understood them.
Further information that may help: