Advantage Travel Partnership has issued advice to members on how to deal with chargebacks but stressed travel agents should not be liable.
The guidance follows a move by the travel agency consortium to produce an infographic for members to show their clients to explain how the refund process works with the aim of reducing the number of refunds and the likelihood of chargebacks.
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The consortium claimed it was widely accepted that chargebacks were “not wholly credible” but said agents needed to prepare for them as consumer frustration increases.
Paul Nunn, operations director, Advantage Travel Partnership, speaking on a YouTube video to members, said the consortium was contacting suppliers if members flagged their refund policies as unfair.
He admitted: “It’s a mess and hugely distressing for all of us. We are pushing for consistency and clarity.
“We are speaking to all suppliers on an individual basis and advising Abta and Iata if they [suppliers] are not following the guidelines. We will continue to champion the agent.”
In the meantime, the consortium has given advice to members on dealing with chargebacks.
This should start with trying to find an amicable solution, he said. “A discount on a future booking may be all it takes to keep a chargeback at bay,” he said.
Nunn also suggested agents ask merchant acquirers for daily reports by email as soon as they are notified of a chargeback, rather than relying on receiving them in the post, to give them more time to prepare a defence.
Members were also advised to ensure they understand their merchant acquirer’s chargeback process and how to contest them.
He added that chargebacks were essentially related to an issue between the card holder, customer and travel organiser – not the agent.
He said: “Chargebacks will be easier to contest once the law is amended. It’s widely accepted that chargebacks made against agents in relation to bookings made with travel organisers are not wholly credible. You should not be liable as you have provided your agency service to the customer.
“You must advise the relevant supplier as soon as you are served with a chargeback as it’s them who should ultimately refund the chargeback.”
Agents could use the rebooking options, refund credit notes, and delayed refund dates as evidence to submit to the card issuer, he said.
Nunn said talks between Abta and the government to secure a temporary change to the Package Travel Regulations to extend the time to refund clients should give the industry “breathing space” and stop chargebacks.
He said: “This should be enough to prevent chargebacks and minimise failures. Abta has advised us this is understood by government. It’s now a political call as to whether government wants to support a law that doesn’t appear to be in the best interests of the consumer. In the long run, it is.”