Keep in mind that in order to get chargeback protection, you need to be using a lodging certified credit card gateway, and take payment at check-out. You pre-auth at check-in to show you got a swiped card on the check-in date, then you charge on check-out to send data on the length of stay. This gets you the best rate and the best chargeback protection.
If you are not on a lodging gateway then it doesn't really matter as your date information doesn't pass through anyway and you are pretty much on your own for chargeback protection..
JBanczak said:
Keep in mind that in order to get chargeback protection, you need to be using a lodging certified credit card gateway, and take payment at check-out. You pre-auth at check-in to show you got a swiped card on the check-in date, then you charge on check-out to send data on the length of stay. This gets you the best rate and the best chargeback protection.
If you are not on a lodging gateway then it doesn't really matter as your date information doesn't pass through anyway and you are pretty much on your own for chargeback protection.
Does anyone know if this applies to PAI? When I got set up Tom told me to press purchase and do it that way. Does that mean I'm at risk on chargebacks?
=)
Kk.
.
YS - I have been set up the same as you for a very long time, have had 2 charge back attempts which I have one due to our detailed paper trail from reservation through departure. I have won each.
Due to several treads regarding this, I recently called my processor and discussed changing over. This is what I was told from
MY merchant provider: I am considered a lodging vendor even though my machine is set up as retail, changing my machine setup would not change my rates as I have been assigned the lodging rate discount.
Then I asked about 'chargeback protection' as it has been stated here. They said it is up to Visa, MC etc as how they handle the chargeback matters but we did discuss this in more detail. I was (and am) mostly concerned with taking deposits where the card is not present. He told me there is
no real advantage which way the machine is setup IF the card is not present AND the deposit would be taken more than 10 (?) days prior to arrival.
The main advantage to the 'lodging gateway' is that the CC co. can tell by the card swip when the person checked in, and the date of check out by the check out process and the signed reciept at that time. If you are set up with the loging gateway but are not taking the card until check out it is the same as if you are using retail and If the person walks with-out signing, you still have a battle to prove the charge if date of departure was an issue. (so really the chargeback protection is that it is more full proof for the credit card company to prove to the guest that the transaction took place and the card was signed. Early departure charges become YOUR battle at the time of billing, thus hopefully being handled prior to having the CC company be involved.
As we all know discount rates vary by merchant processor
so check with your own processor about if there are differences in rates due to the set up of your machine...Also go into detail about you operate - including how / when you take the deposit, and payment after arrival...ask them if there is any advantages to do things one way or another for better 'chargeback protection' too.
I made the switch to the lodging gateway to check it out for a month but will be returning to my old way then. For me it is just 1 more step to make with each guest - have them provide their card at check in to swipe, then at check out provide the reciept to sign along with the deposit reciept. (this after taking a deposit and closing the ticket waisting a lot of paper in the process).
.