27th June 2023
Travel companies can be better prepared to deal with chargebacks with use of automated processes that bring together the information needed to assess and respond to claims effectively.
A lack of automation used in handling such disputes is one of the main challenges when it comes to chargebacks in travel, according to a report by Outpayce.
Other than relying on automated process, the two hurdles in this industry are – an increase in volume, and the difficulty the industry has in collating the evidence required to contest chargebacks.
Key highlights:
- As per the findings of the study, around 70% of the payment experts (from airlines and travel agencies surveyed) acknowledged that the automatic provision of travel and payment evidence relating to the chargebacks they receive would help their company to manage chargebacks more efficiently. For 42% of companies, it would offer a ‘significant boost to efficiency.
- Referring to volume, the study shared 74% of travel companies saw an increase in chargebacks in 2022 compared to 2021 and for nearly half of firms this increase was over 20%. On average, our data suggests chargebacks have been growing at a rate of approximately 30% year over year since 2020.
- The company suggested that travel entities should rely on a record of the original payment having been authorized and the authentication that took place. By combining these payment and travel proofs, and making them readily available when a chargeback is received, it’s possible for travel companies to automatically gather the evidence needed to contest the majority of chargebacks.
By Ritesh Gupta, Ai Events
