Chargebacks and disputes are a real concern for tourism operators. Guests book in advance, pay by card, and sometimes decide well after the fact that they want their money back, and a single disputed charge can cost you the booking, the processing fees, and a chargeback penalty on top. Travel and hospitality has the highest average chargeback value of any industry, at $120, and once you factor in fees and staff time, the all-in cost of a single chargeback runs closer to $450.
What is a chargeback?
A chargeback is a formal request from a credit cardholder to their bank to reverse a charge made on their card.
There are three main reasons a credit cardholder might request a chargeback:
- Fraud: the cardholder didn’t authorize the charge.
- Billing error: the charge is incorrect, for example you charged the wrong amount, or delivered the wrong goods or services.
- Customer dissatisfaction: the cardholder isn’t satisfied with the goods or services they received. This is more common than most operators expect. “Friendly fraud,” where a legitimate cardholder disputes a valid charge, accounts for an estimated 75 to 79% of chargebacks in the hospitality industry.
What is a dispute?
A dispute is a disagreement between a tourism operator and a credit cardholder about a charge. You can resolve disputes informally through direct communication with the cardholder, or escalate them to a formal chargeback process.
How can tourism operators fight chargebacks and disputes?
There are several steps tourism operators can take to fight chargebacks and disputes, including:
- Basic fraud prevention: use a secure payment processor, verify customer identity, and monitor for suspicious activity.
- Clear, concise terms and conditions: spell out your cancellation and refund policies, along with anything not covered by your terms of service.
- Effective communication with customers: give clear, accurate information about your products and services, and stay responsive to customer inquiries.
- Excellent customer service: go above and beyond to meet your customers’ needs and resolve issues as they come up.
- Staying proactive: if you think a customer is likely to file a chargeback, resolve the issue before it escalates. That could mean a refund, a voucher for future travel, or another solution you work out together.
- A written statement of events for the cardholder’s bank: explain the situation and why you should win the dispute, including a brief summary of the services the cardholder purchased and the terms of the agreement.
A sample statement of events
For example:
Statement of Events
On January 1, 2026, Sarah contacted my company to book a private sunset kayak tour for a group of six. She paid the full amount before we confirmed the booking. On January 2, 2026, I sent her a detailed itinerary and gear list, which she approved. She then paid the invoice for the tour. My cancellation policy states that confirmed private group bookings are non-refundable. Sarah agreed to these terms when she paid the invoice.
On January 23, 2026, I notified Sarah that her tour was confirmed for the following week and asked her group to arrive fifteen minutes early for gear fitting. She replied the same day confirming her group’s arrival time.
On January 24, 2026, Sarah’s group arrived and completed the full two-hour tour with our guide. Photos from the day show the group paddling and taking a break at the lookout point. Two days later, Sarah requested a full refund, saying the tour wasn’t what she expected. I explained that she had approved the itinerary in advance and that confirmed private group bookings are non-refundable under our terms.
Reasoning
I believe that I should win this dispute because Sarah approved the tour itinerary before we confirmed her group’s booking. She also agreed to my cancellation policy, which states that confirmed private group bookings are non-refundable. Additionally, her group completed the full tour with our guide, as the photos from that day show, which further indicates that we delivered the service as booked.
What steps should tourism operators take at the time of booking?
At the time of booking, tourism operators should:
- Get the customer’s full name, address, and credit card information. You’ll need this if you ever have to dispute a chargeback.
- Verify the customer’s identity, for example by confirming their email address or phone number.
- Explain your terms and conditions, including your cancellation and refund policies and anything not covered by your terms of service.
- Get the customer’s signature or electronic consent. This protects you if a chargeback dispute comes up later.
What steps should tourism operators take at the guest’s arrival?
At the time of the guest’s arrival, tourism operators should:
- Check the guest’s identification to confirm the person who booked is the person who’s actually showing up. You can attach a scanned copy of their ID to their Wherewolf waiver by clicking MORE, or have the guest upload it directly using PhotoCapture.
- Review the terms and conditions with the guest so they understand their rights and responsibilities under the terms of service.
- Get the guest’s signature or electronic consent to protect yourself if a dispute arises.
Additional best practices to fight chargebacks and disputes
- Keep good records: hold onto booking confirmations, receipts, and correspondence with customers.
- Respond promptly to customer inquiries to resolve issues before they escalate into a chargeback or dispute.
- Be transparent and fair. If a customer does file a chargeback, be ready to provide documentation to support your case.
- Work with the credit card company. They’ll investigate the chargeback, so be prepared to cooperate.
- Verify details as you go. Make sure your team is confirming guest information where possible, for example checking that the name on the ID matches the name on the guest waiver and booking details. If a guest tells you they’ve already shared their ID, don’t just take their word for it. Your process should include approving those documents and attaching them to the guest record yourself.
Following these steps helps tourism operators fight chargebacks and disputes, and protect their business.
Wherewolf creates a guest record for every guest, so operators can identify guests and attach images to their waivers, from scanned IDs your staff add to the manifest to files guests upload directly.
Having this kind of documentation on hand can make all the difference when you’re contesting a chargeback. If you’re missing these details when submitting evidence against a disputed payment, chat to our team today!