A leading banking association has urged customers to resolve refund requests directly with travel agents before submitting chargeback claims.
UK Finance – the banking and finance industry body – said holidaymakers should deal directly with merchants before going to their credit card companies.
The problem of credit card chargebacks has escalated during the pandemic, as customers are increasingly frustrated with delays to refunds.
However, many agents say they have been unfairly stung with chargebacks initiated despite them having assured clients that refunds are on their way from suppliers.
A spokesperson for UK Finance said: “The Competition and Markets Authority has issued clear guidance on customer refunds, which should help consumers to get their money back from merchants and help travel agents with the process.
“Customers are encouraged to try to resolve the situation directly with the merchant in the first instance before submitting a chargeback claim.
“Banks and building societies are working hard to maintain the best service they can for their customers when approached for refunds under the chargeback scheme.
“Given the current circumstances, firms are receiving significantly more requests than usual and are dealing with these as quickly as possible.”
Krystene Bousfield, associate solicitor at Travlaw, highlighted the importance of keeping in regular touch with clients and credit card firms – and keeping good records.
“We encourage people to say in a dispute letter [to the credit card firm] that this person has been promised a refund and enclose proof,” she said.
Several agents have contacted Travel Weekly to highlight the problem, including Nick Edwards, managing director at Snow Finders, who has written to Abta about his fears for the agency sector.
Other agencies facing problems include Cruise Nation, Hyde Barker Travel in Southwell, RB Collection in Lichfield, and miniple Spear Travels.
Abta is lobbying aviation regulators to enforce the refund obligations on airlines, and urged card companies to be pragmatic in the application of chargeback rules.
