Airlines face unique challenges when handling chargebacks and must think carefully about how they communicate their cancellation policies to customers. The airline chargeback process may be affected by a range of factors, including the Covid-19 pandemic, which make it more likely that customers may cancel flights.
With that in mind, it is crucial that airlines have an effective chargeback process in place that meets their business needs and ensures regulatory compliance. Explore our airlines chargeback guidance to find out how to develop and disclose an effective chargeback policy that creates satisfactory outcomes for you and your customers.
Airlines must take a range of factors into account when navigating the chargeback process. Unique challenges, such as scheduling and safety concerns, make flight cancellations more frequent while external risks such as the Covid-19 pandemic can complicate chargebacks further.
We understand the inherent challenges of managing airline chargebacks and we’re ready to help you navigate the process.
Your chargeback policy should be built on an understanding of card schemes’ cancellation policies. As part of that requirement, merchants must show that they disclosed their chargeback policy properly and obtained confirmation that the customer claiming the chargeback both read and understood it.
Communication is especially important for airlines because of the complexity of associated industry rules and regulations. Your cancellation policy must be communicated clearly to your customers prior to finalization of their payment.
We can help you develop and properly disclose your airline cancellation policy at the right point in the payment process and help you prepare for chargeback arbitration comprehensively.
If you have questions relating to airline cancellation policies or any aspect of the chargeback process please don’t hesitate to get in touch.
We offer 24/7 support to our airline clients along with industry-leading experience and expertise in managing the challenges of the chargeback process.
When a merchant restricts cancellation of their services, they must clearly disclose their policy to cardholders before payment and reservation has been made. When a chargeback is received, the merchant must be able to demonstrate that the cardholder accepted the policy prior to payment.
Card schemes set out rules on how merchant cancellation policies should be disclosed to customers. Read our guide to proper disclosure of your cancellation policy below:
Your disclosure should comprise a 'click to accept' button, checkbox, or similar acknowledgement.
For cancellation related chargebacks, merchants must be able to demonstrate that the customers accepted the policy before finalizing their payment/reservation.
The proof of proper disclosure that you use during the chargeback process may contain sample screenshots in order to demonstrate that the cancellation policy was clearly referenced during the sequence of pages leading to final check-out. Apart from sample screenshots, the full cancellation policy for specific reservations must also be provided.
Reservation details containing passenger and flight data that include the cancellation policy for the specific reservation.
Sample screenshots that show your cancellation policy was referenced during final checkout.
A screenshot from the final payment page demonstrating that cardholders had to acknowledge acceptance of terms and conditions.
This website contains general information, it is recommended that you seek legal and expert advice regarding your own merchant chargeback policies.