Credit cards and criminals!

Now that things have slowed down I want to share with you
my experience THIS YEAR ONLY in accepting credit cards.
Never before, in 16 years, has this happened to me.
We received many reservations but 6 people disputed the
charges amounting to $2000.00 and WON! These folks
stayed at my B&B, ate the breakfasts, occupied the rooms,
but disputed the charges for ludicrous reasons in spite of the fact that all the terms were clearly stated on the booking form and agreed to by them. When I contacted the credit card companies they said that certain people disputed all their charges and that they ruled in their favor because they gave "loyalty" to their customers!
I know in a Court of law I would have won, but these people were all from out of State and for the small amount on each one, there really wasnt anything I could do. I not only lost the $2000. but also the food!
I would like to know if anybody else ever had these problems. One man's excuse was that we were too far away from his work!

As it was said before, raise your room rates and most of your problems will disappear. Why? Your price attracts a certain set of people. As the saying goes, "you get what you pay for" or changed for innkeepers, "you get what you charge." That's my tough love for you.

Never had anything like that happen. But, the credit card companies know they will lose their customer if they don't back them up. You they don't care about because you can't pick and choose which bank cards to accept.
It's a pain and more people are doing it to get free vacations. If they can't get you to give the money back, they go thru the card company.

Did you get signatures of the sale? Did you use a booking system that has them check to say they agree to the booking terms?

If you say yes to these then you should have contested the chargeback. You do know you have the right to provide documentation proving you are deserving of the charge?

I can not say that you will always win but if you do not try the answer will always be no.

if they stayed and to be fair if they ate food they must have - didn't they have to sign? in the UK we have pin and I make them put the pin in and then ZERO chargeback

I am confused. Disputed on what grounds?

doesn't make sense. if they stayed, they should pay.

I had something similar happen three years ago. The guy booked the room but emailed me no less than six times confirming my cancellation policy so I know he understood.
When he arrived he checked in and then went to visit his sister about 20 minutes away. Suddenly he was afraid to drive my mountain roads and wanted to cancel without returning.
I told him he knew my policy but he did not choose to return. I know that he decided to stay with his sister and did not want to pay.
A week later I got notification that he contested the charge on his credit card. I sent the credit card company copies of all his emails showing he knew the cancelation policy. I know they never even read my letter and ruled in his favor.
This guy worked for NASA at the Hubble Telescope so he was no dummy, just a weasel.

TheBeachHouse said:

doesn't make sense. if they stayed, they should pay..

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Yes of course they should pay but in today's world of fraud, they dont always pay!

seashanty said:

I am confused. Disputed on what grounds?.

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On stupid reasons like not wanting to drive here, not liking my rendition of breakfast! All kinds of silly reasons just so they can get their credit card company to void the charge which is what happens. We live in a very dishonest society these days. Maybe it depends where one is located but I am in San Diego and we are fair game for these type of folks. They come here in droves and then dispute the charges if they are inclined to stealing!!!

Jcam said:

if they stayed and to be fair if they ate food they must have - didn't they have to sign? in the UK we have pin and I make them put the pin in and then ZERO chargeback.

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You are lucky. Here in U.S.A we dont have that protection. They agree to the terms and conditions but then find ways to dispute charges! Watch out for your American visitors and get cash if you can!

Copperhead said:

Did you get signatures of the sale? Did you use a booking system that has them check to say they agree to the booking terms?

If you say yes to these then you should have contested the chargeback. You do know you have the right to provide documentation proving you are deserving of the charge?

I can not say that you will always win but if you do not try the answer will always be no..

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Yes I absolutely got their agreement to the terms. I disputed the claim but as always their credit card company voids the charge. I was told there is nothing I can do.
I am surprised they didnt steal the Silverware when they were here or worse!

Morticia said:

Never had anything like that happen. But, the credit card companies know they will lose their customer if they don't back them up. You they don't care about because you can't pick and choose which bank cards to accept.
It's a pain and more people are doing it to get free vacations. If they can't get you to give the money back, they go thru the card company..

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You are the first person who actually seems to be aware of this. Thank you.
I thought about taking cash but then if there's damage, there's no recourse. However, as the credit card companies dont play fair, maybe I wouldnt have recourse anyway. Not sure what to do for next year. Any ideas?

Duff2014 said:

As it was said before, raise your room rates and most of your problems will disappear. Why? Your price attracts a certain set of people. As the saying goes, "you get what you pay for" or changed for innkeepers, "you get what you charge." That's my tough love for you..

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Well I appreciate your thoughts.
I tried to be in line with my competition and did get a lot of bookings. If I put the rates up
will people come if they can book elsewhere for less?

Audrey Forrest said:

Duff2014 said:

As it was said before, raise your room rates and most of your problems will disappear. Why? Your price attracts a certain set of people. As the saying goes, "you get what you pay for" or changed for innkeepers, "you get what you charge." That's my tough love for you..

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Well I appreciate your thoughts.
I tried to be in line with my competition and did get a lot of bookings. If I put the rates up
will people come if they can book elsewhere for less?
.

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Audrey Forrest said:

If I put the rates up will people come if they can book elsewhere for less?

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It's pretty simple. If you charge $49/night you'll get the same type people who stay at Motel 6, and you will NEVER get people like me who have not stayed in a Motel 6 since college days. I wouldn't even consider a place that cheap, assuming it's cheap because it's seedy. Disreputable.
If you like the Motel 6 crowd, keep doing what you're doing. Enjoy them, and don't gripe about them, because you asked for it!

I am certainly NOT like Motel 6.
I have to compete with local
places offering $55. - $60 right now. There is one Hotel charging $100.00 night but they have a swimming pool and I dont. My rooms are nicer though but they have a golf course!
You are assuming all people paying more than $100. night do not present problems. That is not true here. I actually did charge $150. night during Comic-Con and some of those people were iffy!
Confused as to what to do for the best as I dont think its all about price. It could be about the location of the guest as many
of them were in the South.

Roxanne Trees said:

I had something similar happen three years ago. The guy booked the room but emailed me no less than six times confirming my cancellation policy so I know he understood.
When he arrived he checked in and then went to visit his sister about 20 minutes away. Suddenly he was afraid to drive my mountain roads and wanted to cancel without returning.
I told him he knew my policy but he did not choose to return. I know that he decided to stay with his sister and did not want to pay.
A week later I got notification that he contested the charge on his credit card. I sent the credit card company copies of all his emails showing he knew the cancelation policy. I know they never even read my letter and ruled in his favor.
This guy worked for NASA at the Hubble Telescope so he was no dummy, just a weasel..

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Curious to know if the "weasel" paid over or under $100.00 night. It has been suggested that if I charge low rate I will get the weasels. What say you???

Copperhead said:

Did you get signatures of the sale? Did you use a booking system that has them check to say they agree to the booking terms?

If you say yes to these then you should have contested the chargeback. You do know you have the right to provide documentation proving you are deserving of the charge?

I can not say that you will always win but if you do not try the answer will always be no..

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Do you honestly think that the price of the room determines whether this type of fraud will happen? I try to keep competitive but in this area it is hard to get more than $65. night off season. Even in season I only find higher rates possible during a Convention. Very much interested in your opinion.
For a while, I did look up their names on Facebook and when I could match the address, their picture popped up. A think a picture says a 1000 words.
Maybe I should go back to doing that. The Booking Agent said we would get more bookings without asking for their address but now
I am beginning to wonder if that was a wise decision as all of the chargebacks except for one, we didnt have their addresses.

Morticia said:

Never had anything like that happen. But, the credit card companies know they will lose their customer if they don't back them up. You they don't care about because you can't pick and choose which bank cards to accept.
It's a pain and more people are doing it to get free vacations. If they can't get you to give the money back, they go thru the card company..

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I always value your opinion!
Do you really think the price of the room has anything to do with these fraudsters? I mean someone can charge $250. night and still get burned. I know the
Plaza Hotel in New York City
get burned regularly. I stayed there and they told me so!

Audrey Forrest said:

I am certainly NOT like Motel 6.
I have to compete with local
places offering $55. - $60 right now. There is one Hotel charging $100.00 night but they have a swimming pool and I dont. My rooms are nicer though but they have a golf course!
You are assuming all people paying more than $100. night do not present problems. That is not true here. I actually did charge $150. night during Comic-Con and some of those people were iffy!
Confused as to what to do for the best as I dont think its all about price. It could be about the location of the guest as many
of them were in the South..

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Audrey Forrest said:

I am certainly NOT like Motel 6.

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I didn't say you are like Motel 6. My point is that people who know nothing about you will ASSUME you are like Motel 6 based on your rates being similar to theirs. Unfortunately, most don't study your website and all you offer. They study your rates, and judge.
But you continue to fight the current of everybody else here, and that's fine. If you are happy with your guests and your business, great! Enjoy.