Short-term rental operators can eliminate chargeback fraud by stopping it before check-in. Chargeback fraud happens when a guest pays for a stay and then asks their bank to reverse the charge afterwards.
Without a verified guest ID and a signed rental agreement on file, you have no grounds to fight the dispute. ChargeAutomation prevents this by automating the full fraud protection flow before any guest checks in.
See how ChargeAutomation works →Why is chargeback fraud a serious problem for short-term rentals?
Chargeback fraud in hospitality happens when guests pay by credit card and then ask their bank for a refund after their stay. The property owner loses the revenue. STR operators need to guard against three types.
Friendly fraud
A guest disputes a valid charge after their stay. This is the most common form of chargeback fraud in short-term rentals.
Criminal fraud
A booking is made with a stolen credit card. The real cardholder disputes the charge, and the operator has no way to recover it.
Merchant error
A dispute caused by a processing mistake, such as a double charge or a failed refund. Automated payment workflows prevent it.
How does ChargeAutomation protect short-term rentals from chargeback fraud?
ChargeAutomation’s chargeback protection software works in four stages. Together, they stop fraudulent chargebacks before they turn into costly disputes. It comes with a 100% guarantee that you will have zero chargeback fraud when you collect payments through the platform.
Guest identity verification
Collect a government-issued ID and selfie before check-in. This creates a legal record that backs every dispute response.
Real-time fraud detection
Every payment is checked across hundreds of data points. It is escalated on the spot when risk signals show up.
Security deposit automation
Pre-authorise a deposit automatically when the booking is confirmed. The funds are ready right away if you need to fight a dispute.
Dispute evidence generation
Verified ID, signed rental agreement and payment receipts are stored automatically. They are ready for any chargeback response at any time.
Fully automated in under 5 minutes
Works with 50+ PMS platforms, including Guesty, Hostfully, Lodgify and Escapia. Connects to 130+ payment gateways. Trusted by Wyndham, CozySuites, UpStay, and LifeSuites.
What does the ChargeAutomation fraud protection stack include?
Frequently asked questions
What is chargeback fraud in short-term rentals?
Chargeback fraud in short-term rentals happens when a guest pays by credit card and then asks their bank for a refund after their stay. The operator loses the revenue. There are three types: friendly fraud from real guests, criminal fraud with stolen cards and disputes caused by merchant processing errors.
Is it possible to fully eliminate chargeback fraud?
Yes. ChargeAutomation offers a 100% guarantee to operators who use its full fraud prevention stack. They will have zero chargeback fraud when they collect payments through the platform.
Why is chargeback fraud prevention important for vacation rental operators?
Chargeback fraud prevention protects your revenue from fake disputes and makes things easier for honest guests. Without a verified ID and signed agreement on file, STR operators have no proof to fight disputes. They lose revenue on stays that were completed and paid for in good faith.
What PMS platforms does ChargeAutomation integrate with?
ChargeAutomation works with 50+ property management systems, including Guesty, Hostfully, Lodgify and Escapia. It connects to 130+ payment gateways. You can set it up in under 5 minutes, with no contract needed.
Ready to eliminate chargeback fraud from your short-term rental?
ChargeAutomation gives vacation rental operators a 100% chargeback fraud guarantee. It uses biometric ID checks, automated security deposits, signed rental agreements and real-time fraud monitoring. Free to start, no contract.
