Overview

A chargeback occurs when a card issuer reverses a payment after the cardholder disputes a transaction on their account. When a dispute is raised, the payment is temporarily reversed while the property has the opportunity to defend the transaction and resolve the issue.

3DS Verification

RMS Pay secures all online payments for card-not-present transactions using 3DS (Three-Domain Secure). 3DS adds an extra layer of security by requiring the cardholder to manually enter a secure code provided by the card issuer during the transaction process. This verification step ensures the cardholder authorizes the transaction, helping to prevent fraud and reduce the likelihood of chargebacks.

The enforcement of 3DS verification is determined by the card issuer’s fraud detection systems, which use advanced security and risk assessment algorithms to evaluate whether the transaction is considered high risk and requires additional verification from the cardholder.

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 outline policies regarding payments, refunds, cancellations, and no-shows in the Terms & Conditions that guests agree to during the reservation process. Ensure these terms are easily accessible on the property's website, online portals, reservation confirmations, and all related correspondence.
• In RMS, you can enter these Terms & Conditions for both the RMS Internet Booking Engine and Guest Portal, making them readily available to guests on both platforms.
   

Registration Cards, Photo Identification & Signatures

• Guest information can be accurately captured on the Guest Profile, with all guests recorded under the corresponding reservation. A Digital Registration Card can be set up to collect essential details, including a guest's signature and a copy of their photo identification. This information is automatically stored in the Guest Profile and attached to the reservation for easy access.
• For properties using Paper Registration Cards, these must be manually retained with the guest’s signature and a copy of their photo ID. Additionally, signatures from each guest on the Registration Card, as well as from the cardholder on any Room Charge Slips, Statements, Tax Invoices, Receipts, or Refunds, can be stored to confirm the cardholder's authorisation of charges.

Deposits & Pre-Payments

• Payments made through the RMS Internet Booking Engine, Guest Portal, or securely sent Pay By Links all require 3DS verification by the cardholder before the payment is processed, when using RMS Pay as the payment gateway. 3DS verification adds an extra layer of security, requiring the cardholder to enter a secure code provided by the card issuer. This step ensures that the cardholder authorizes the transaction, confirming its legitimacy and protecting against fraud.
• When full payment is taken at the time of reservation through the RMS Internet Booking Engine, or when a guest is directed to complete payment via a secure Pay By Link or in the Guest Portal, 3DS Secure verification is required. This ensures the cardholder verifies and authorizes the transaction on their account.

Pre-Authorizations

• Pre-Authorisation places a temporary hold on funds on a credit card, which can later be applied to the Reservation Account using the CC Pre-Auth Token.
• Pre-authorisation can be processed through the RMS Pay terminal, either for the amount set in the payment gateway configuration or for an alternative amount entered manually. This method is useful when the final payment amount is unknown, as it allows for an estimated value to be held until the final charge is determined.
• To process the pre-authorisation, the card must be present at the RMS Pay terminal. This provides the opportunity to verify the cardholder’s identity and obtain signed consent for the fund hold.

Refunds

Promptly processing any refund owed to a guest helps minimise the risk of a disputed transaction. Delays in issuing refunds may lead the cardholder to dispute the transaction with their bank to recover the funds.

Refunds processed through RMS Pay will automatically be credited back to the card used for the original payment.

Chargeback Management

Chargeback Management is available when using RMS Pay as the payment gateway, simplifying the process of viewing, managing, and defending chargebacks issued to the property. User access to the Chargebacks screen can be controlled through Security Profile privileges.

The timeframe for defending a chargeback varies depending on the card scheme (e.g., Visa, Mastercard, American Express), and the required supporting documents will differ based on the nature of the cardholder’s dispute.

Common Transaction Disputes

The most common reasons for a transaction dispute leading to a chargeback include:

• Fraud — including perceived fraud.
• Dissatisfactory Service.
• Untimely Refunds.
• Unclear Cancellation or Deposit Policy.
• Duplicate Charges.
• Reservation Cancellation.

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