The cardholder claims they were billed a no-show fee despite canceling the reservation within specified timelines or using the facilities. Alternatively, the no-show billed was higher than the rate quoted initially.
Cause
The merchant didn’t inform the cardholder of the no-show fee before the reservation.
The merchant charged a no-show fee, even after the cancellation was made within the set timelines.
Response
Cardholders and issuers have 120 days to file a dispute related to the claim against the merchant.
Merchants have 45 days to respond to the claim in dispute.
Steps to Prevention
Explain the no-show or cancellation costs and terms and conditions before completing the reservation.
Respond to all cancel requests in good time and always confirm with the cardholder.
Train the staff on how to best handle reservation changes and cancellations.