Law firm Travlaw reports growing success in challenging card chargebacks and advises agents and operators to “dispute every one”.
It warned a recent rise in ‘double recovery’, where a chargeback is issued when a refund has already been paid, may be fraudulent. Travel Weekly has previously reported on card chargebacks sought by customers already in receipt of refunds.
Travlaw associate solicitor Krystene Bousfield said: “If you receive a chargeback request, one million percent dispute it. If you don’t, it will be raised against you. Dispute every one.”
More: Customers urged to resolve refunds with agents before seeking chargebacks
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She said: “Of every five agents we’re advising [on chargebacks], probably less than one in five has issues.”
Bousfield added: “Double recovery has only come to light in the last 10 days. I don’t think it’s a large thing, [but] we’re starting to see more [instances]. It could be accidental, it could be fraud.
“It may be you tell a customer they will get a refund in three weeks and the customer thinks ‘I’ll chargeback and see which pays first’. Keep a record of every refund and check.”
Speaking on a Travlaw webinar, Bousfield said: “We’re disputing as many chargebacks as possible.
“We’re seeing chargebacks where the customer has travelled. Dispute it. Check your records.
“We see chargebacks where there is a disinclination to travel [by a customer]. If you’re able to provide a service and people choose not to go, they can’t raise a chargeback. Dispute it.”
“Visa has said if a booking can’t proceed due to Foreign Office advice, a chargeback is not due. If you offer a ‘reasonable alternative’ – a refund credit note – Mastercard and Visa have said a chargeback won’t apply.
“If the customer hasn’t contacted you about a refund, if the first you’ve heard is when you’re notified of a chargeback, say that.”
“Visa and Mastercard say chargebacks are invalid if “the cardholder has not attempted to resolve the dispute” direct with the merchant.
Travlaw has recruited two new lawyers, Milli Richardson and Monica Kainja, to its commercial and corporate governance department.
Richardson is a South African qualified lawyer with commercial law experience at large international law firms. Kainja has dealt with a range of corporate and commercial matters for SMEs and owner managed businesses including acquisitions and disposals.
More: Customers urged to resolve refunds with agents before seeking chargebacks
Agents warn of failures as chargebacks ‘nightmare’ continues
Advice: What you need to know about Chargebacks and Section 75 of the Consumer Credit Act
