Best Practices to Help Prevent and Defend Chargebacks
Introduction
Chargebacks can be costly, time-consuming, and disruptive to your business operations. While they cannot be eliminated entirely, taking proactive steps can significantly reduce the likelihood of disputes. This guide outlines practical best practices to help prevent chargebacks and strengthen your position when defending against them.
Establish Clear Terms & Conditions
Ensure your terms and conditions—including policies for additional charges (e.g., Wi-Fi, deicing), damage, and cancellations—are comprehensive and reviewed by legal counsel.
Customer Bank Notification
Encourage your customer to notify their bank ahead of time regarding the upcoming purchase to prevent it from being flagged as suspicious.
Promote Direct Communication
Always stress the importance of customers reaching out to you first with any questions or concerns—before contacting their credit card company.
Know Your Customers
Maintain a strong relationship and familiarity with your frequent clients to help identify potential red flags early.
For New Customers: Verify Identity
For clients you don’t know well, request a copy of their government-issued ID and any supporting documents. One effective option is to have them send a photo of themselves holding their ID and the credit card being used (with sensitive info concealed, if preferred).
Secure Payment Before the Flight
Never operate a trip without confirmed and secured payment.
Document Everything in Writing
Always preserve all forms of communication—emails, text messages, and notes from phone calls. If a conversation takes place over the phone, follow up with an email summarizing what was discussed. This creates a written record and ensures alignment on next steps or agreements.
If it’s not in writing, It’s as if it never happened. Thorough documentation can be critical to resolving disputes.
Additionally, if there is a route or aircraft type change, ensure a new contract is sent to the recipient to protect yourself from any potential “bait and switch” allegations.
Potential Red Flags to Watch For
Note: Each of these on its own may not indicate fraud, but multiple red flags combined increase the risk of a chargeback.
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Use of Multiple Credit Cards Due to Declines – Repeated attempts may indicate fraudulent activity.
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Splitting Payments Across Multiple Credit Cards – Occasionally legitimate, but uncommon and a red flag when combined with others.
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Using a Credit Card with an Imminent Expiration Date – Can be a tactic to avoid detection or traceability.
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New Customer Requesting Immediate Travel – Treat requests for same-day or next-day travel with caution.
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Request Full Name and Billing Address Up Front – Asking for full details may expose fraud if the information doesn’t match.
💡 Tip: Listen for hesitation or mismatched information—they may inadvertently reveal the card isn’t theirs.
Security Measure: AVS (Address Verification Service) Enforcement
We’ve implemented an AVS check that automatically denies any credit card where the street address and ZIP code do not match the card issuer’s records.
You may have noticed an increase in declined transactions over the past months—this is a result of the new security protocol.
Key Documentation to Support Chargeback Disputes
When responding to a chargeback, gather and submit the following documentation to strengthen your case:
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Passenger Manifest – Ensure the manifest clearly includes the cardholder as a passenger (when applicable).
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Signed Contracts/Agreements – Provide executed agreements or charter contracts outlining terms. Update and re-sign if changes occur.
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Credit Card Receipts – Include receipts showing payment authorization, amounts, and date/time stamps.
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Flight Tracking Details – Attach logs or tracking data confirming the trip was completed.
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Relevant Text and Email Communications – Compile all correspondence, confirmations, and itinerary approvals.
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Written Summary of Services and Circumstances – Provide a clear narrative of services rendered and customer involvement.
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Associated Costs – Include out-of-pocket costs related to booking and service delivery.
Conclusion
Chargebacks are not only financial setbacks but also impact customer relationships and operational efficiency. By following these best practices, you can reduce the risk of disputes, spot potential fraud earlier, and present stronger evidence if a chargeback does occur.
If you have questions or need assistance with a specific case, please reach out to our support team for guidance.
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