Chargeback Fraud Losses
Definition
Hotels face revenue loss from chargebacks where pre-authorized amounts are reversed after no-shows or fraudulent disputes, common in online bookings without robust verification.
Key Findings
- Financial Impact: AUD 100-500 per chargeback + 2-3% processing fees; 1-2% revenue exposure for disputed bookings
- Frequency: Per disputed booking, high in peak seasons
- Root Cause: Weak pre-authorization verification and reliance on manual forms leading to invalid card disputes
Why This Matters
The Pitch: Hotels and Motels in Australia 🇦🇺 lose AUD 5,000+ annually per property on chargeback disputes. Automation of authorization verification eliminates this risk.
Affected Stakeholders
Front Desk Manager, Revenue Manager, Accounts Receivable
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Pre-authorization Hold Delays
Authorisation Form Compliance Errors
BAS Lodgement Failures from AR Reconciliation
GST Tax Invoice Non-Compliance Penalties
Lost GST Input Tax Credits on Corporate AR
Capacity Loss from Overbooking Mismanagement
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