Lodgify Payments: Manage chargebacks

A dispute (also known as a chargeback) occurs when a cardholder challenges a payment with their card issuer or bank. For example, a guest might dispute a reservation payment if they are dissatisfied with the service provided or the cancellation policy.
While we don't handle chargebacks directly on your behalf, we're here to assist you and guide you through the process.

Read about:

• Chargeback notification
• Chargeback fee
• Manage chargeback balance
• Chargeback procedure
  • You accept the chargeback
  • You challenge the chargeback
• Chargeback withdrawal
• Inquiry on a payment
• Early warning fraud
• 📚 Linked Resources

Chargeback notification

When a chargeback is received, we will notify you by email and provide a chargeback assistance pack. This pack includes information on how to accept or challenge the chargeback, along with details on the evidence you can submit to support your case. Chargebacks can be for any amount, up to the total paid by the guest or a lesser amount. For example, a guest who paid $600 might request a chargeback of $300.

Please keep in mind that the full lifecycle of a dispute, from initiation to final resolution, can take approximately 2-3 months. The final outcome of a chargeback is determined solely by the bank or card issuer, and we have no influence over their decision.

Chargeback fee

Each chargeback incurs a $15 base fee. If you choose to challenge the dispute, an additional $15 fee applies. This additional fee is refunded if you win the dispute, but is not refunded if you lose.

The chargeback fee will be deducted from your Lodgify Payments account balance, if available. If there is no available balance, the fee will be deducted from your next payout. If your Lodgify Payments account balance goes negative, funds may be withdrawn directly from your bank account. Learn how to add a balance to your account here.
Please note that the $15 base fee is non-refundable, even if you choose to accept the chargeback, the fee will still apply.

Manage chargeback balance

The chargeback amount will appear as a negative balance in your account if there is no available balance to cover it. Payouts can be used to cover the chargeback amount if a payout is due. If no payout is due, Stripe will attempt to collect the amount via direct debit on your bank account. You can add a balance to your account at any time, find out how.

Chargeback procedure

You accept the chargeback

You can accept the chargeback if you believe it is valid or if you have reached a resolution with the guest and choose to accept it.
To accept the dispute or chargeback, go to the Payments section of your Lodgify account, select the disputed amount, and click Accept dispute.

Accepting a dispute will immediately close the dispute as lost.

Please note that once you accept the chargeback, you will no longer be able to submit any evidence, even if you later change your mind and decide to dispute it. Accepting a dispute immediately finalizes it as lost.
As for the guest, the time it takes for them to receive their funds after a chargeback is accepted depends on their card issuer or bank.

You challenge the chargeback

If you believe the chargeback is not valid or have not reached a resolution with the guest, you will need to challenge it by submitting evidence.
💡 Note: If you choose to challenge the dispute, an additional $15 fee applies. This additional fee is refunded if you win the dispute, but is not refunded if you lose.
To do this, go to the Payments section of your Lodgify account, select the dispute, and click Counter Dispute:

When disputing a chargeback, you’ll need to provide this type of evidence within the allotted time (between 7-21 days, the deadline can be found under the Payment section):

• Proof of transactions
• Terms and conditions of the booking
• Record of conversations between you and the guest
• Check-in and check-out records
• Confirmation of the booking and payments, including dates, location, and guest details
• If a reservation is canceled, provide confirmation of the refund and any refund requests
• Proof of any changes or cancellations made by the guest, if applicable
• A clear explanation of why you are disputing the chargeback
• A copy of any rental agreements, if relevant

💡 Note: Chargeback evidence can only be submitted once, and after it has been provided, no additional evidence can be added. 

Once you submit evidence, the dispute status will appear as In Review or Disputed on your dashboard.
You can check the outcome of the chargeback in the Payments section of your Lodgify account.

Once the bank or card issuer makes a decision, you will receive a confirmation email from us, and the dispute status will be updated.
The outcome will be either Won or Lost:

• Won: The bank or card issuer ruled in your favor and overturned the dispute. The disputed amount will be returned to your Lodgify Payments account. The additional $15 fee is refunded if you win the dispute (but not the $15 base fee).
• Lost: The bank or card issuer ruled in the guest’s favor and upheld the dispute. In this case, the refund is permanent, and the dispute fee is non-refundable. The bank or card issuer has the final say in all chargeback disputes. If they rule in the guest’s favor, we are unable to overturn their decision.

💡 Note: Although rare, guests may file multiple chargebacks for the same transaction. Each dispute must be handled separately, which means you'll need to submit evidence for each chargeback, even if the amounts are identical. Alternatively, if you choose to accept the disputes, each one must be accepted individually.

Chargeback withdrawal

A chargeback withdrawal or dispute withdrawal occurs when the guest cancels the dispute. This could happen if you and the guest reach a resolution, and the guest then requests their card issuer or bank to cancel the chargeback. Even if the guest withdraws the chargeback, you are still required to provide evidence.
When providing evidence for a chargeback withdrawal, select the option The cardholder withdrew the dispute, and then proceed to submit your evidence.
While proof that the guest has withdrawn the dispute can be submitted as part of the evidence, it is not mandatory.
Please note that withdrawing a dispute does not speed up the process; the dispute will still follow the normal timeline, which can take approximately 2-3 months to resolve. Additionally, the funds will not be immediately returned to you, even if the guest decides to withdraw the dispute.

Inquiry on a payment

An inquiry on a payment occurs when a guest reports to their card issuer or bank that they did not authorize the payment, or when the bank or card issuer requests more details about a charge before deciding whether to dispute it.

If an inquiry is made, we will notify you by email. You will have 7–21 days to respond by submitting evidence. Additionally, you have the option to refund the customer. We recommend reaching out to the guest first before deciding how to proceed.

The outcome of an inquiry may take up to 4 months. Once a decision is made, we will notify you, and you can also view the outcome in your Lodgify account.

You may want to consider refunding the guest, as this can help mitigate potential issues and prevent a possible chargeback.

Early warning fraud

An Early Warning Fraud occurs when:

• A transaction is flagged as suspected fraud by Stripe.
• A guest contacts their bank or card issuer, typically to report suspicious or unauthorized activity. A chargeback has not been filed yet.

If the transaction is deemed suspicious, Stripe may refund the payment within 24-48 hours of the transaction.
If Stripe does not refund the transaction, we recommend reaching out to the guest immediately to understand why they contacted their bank to report the transaction. If the guest confirms that the charge is valid, they can contact their bank to withdraw the claim.
If the guest claims suspicious activity or you do not hear from them, you can cancel and refund the reservation. This also helps keep your calendar up to date. We advise doing this within the 24-48 hour window to prevent the situation from escalating into a chargeback.