Understanding Disputes & Chargebacks

A chargeback is one of the more stressful things a merchant can face - but with the right process, most can be won. This guide explains what chargebacks are, how TurnStay handles them, and what you can do to protect your revenue.

Chargeback vs refund - what’s the difference?

They might feel similar, but they’re fundamentally different processes:

Refund

Initiated by you, through the TurnStay Dashboard or API. The funds are returned to your guest directly. Fast, clean, and entirely within your control.

Chargeback

Initiated by your guest’s bank, on the guest’s behalf. The bank reverses the charge and opens a formal dispute. TurnStay notifies you and gives you the opportunity to respond with evidence.

Tip

If a guest contacts you directly about a problem with their booking, resolving it with a refund - where appropriate - is almost always faster, cheaper, and less stressful than a chargeback. A chargeback should be the last resort, not the first.

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Why chargebacks happen

Card networks recognise several standard reasons a guest’s bank might initiate a chargeback. The most common in hospitality are:

Reason	What it typically means
Fraud / Unauthorised transaction	The guest claims they didn’t make the payment - often a stolen card
Service not provided	The guest claims they didn’t receive what was booked
Not as described	The guest argues the stay or service didn’t match what was advertised
Duplicate charge	The guest was charged more than once for the same booking
Cancelled booking	The guest believes a cancellation should have resulted in a refund

Understanding the reason behind a chargeback is the first step to building an effective response.

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What happens when a chargeback is raised

TurnStay handles the notification and response workflow on your behalf - you’ll never be left to navigate card network processes alone.

1. You’re notified immediately

   The moment TurnStay receives a chargeback from the card network, you’ll receive a notification. The dispute appears in your Dashboard under Payments → Disputes with full details: the transaction, the amount, the currency, and the reason provided by the guest’s bank.

2. A response window opens

   You have a defined window to review the dispute and decide how to respond. This timeline is set by the card network and cannot be extended - acting promptly is essential.

3. TurnStay support contacts you

   A member of the TurnStay support team will reach out to confirm the chargeback has been raised and walk you through your options. You can choose to accept the dispute - in which case the funds are returned to the guest - or counter it if you believe the chargeback is unjustified.

4. Send your evidence to TurnStay

   If you choose to counter the dispute, send as much supporting evidence as you can to your TurnStay support contact. Strong submissions typically include booking confirmations, guest communications, check-in records, and your cancellation policy. The more specific and documented, the better - TurnStay will then compile and submit everything to the card network on your behalf.

5. TurnStay submits to the card network

   TurnStay packages your evidence and sends it to the guest’s card network on your behalf. You don’t need to communicate with the card network directly.

6. A decision is issued

   The card network reviews the evidence from both sides and issues a final ruling. If the decision goes in your favour, the disputed funds are returned to you. If not, the chargeback stands.

Note

Response windows are strict. If you miss the deadline, the chargeback will be decided in the guest’s favour automatically - regardless of the merits of your case. Keep an eye on your Dashboard notifications and act quickly.

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Building a strong chargeback response

The evidence you submit makes or breaks your case. Here’s what tends to be most persuasive:

Booking records

The original booking confirmation showing the guest’s name, dates, room type, and agreed price. Timestamped records are particularly valuable.

Guest communications

Any emails, messages, or correspondence with the guest - especially anything acknowledging the booking, check-in, or your cancellation policy.

Check-in evidence

Signed registration cards, digital check-in records, or access logs that confirm the guest was on property.

Your cancellation policy

A clear, documented copy of the policy the guest agreed to at the time of booking - ideally with evidence that it was presented to them.

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Reducing chargebacks over time

The best chargeback is one that never happens. A few practices that make a meaningful difference:

• Be explicit about your cancellation policy at the point of booking - ambiguity is a guest’s best argument
• Send booking confirmations promptly so guests have a clear record of what they agreed to
• Respond quickly to guest complaints - a guest who feels heard rarely escalates to their bank
• Use clear billing descriptors so guests recognise the charge on their statement and don’t mistake it for fraud
• Keep your records organised - if you can pull up a complete booking history in minutes, you’re well placed to respond to any dispute

Tip

Merchants with consistently low chargeback rates often benefit from better processing terms over time. It’s worth treating dispute prevention as an ongoing part of your operations, not just a reactive measure.

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Tracking disputes in your Dashboard

All disputes - open, submitted, and resolved - are visible in the TurnStay Dashboard under Payments → Disputes. You can view the full detail of each case, track its current stage, and submit evidence directly from the same screen.

If you have questions about a specific dispute or need support building your response, contact TurnStay at support@turnstay.com.