What Happens If You Dispute a Hotel Charge?

If an incorrect or unauthorized hotel charge appears on your statement, understanding how to address it is important. Billing errors, charges for services not received, or unexpected fees can occur. Consumers have avenues to challenge these charges, ensuring fairness in financial transactions and maintaining financial accuracy.

Attempting Direct Resolution with the Hotel

Addressing a hotel charge discrepancy often begins with direct communication to the hotel. This initial step can frequently resolve issues efficiently without further escalation. Gather all relevant information, including your booking confirmation, dates of stay, the specific charge in question, and a clear explanation of why you are disputing it. Supporting documents, such as receipts that contradict the disputed charge, can strengthen your position.

Contact the hotel’s billing department, or if unavailable, the general manager. Clearly explain the situation, providing specific details and referencing your gathered documentation. Record the date and time of your call, the name of the person you spoke with, and a summary of the conversation. If communicating by email, save all correspondence as proof of your attempt to resolve the matter.

Allow the hotel a reasonable period, a few business days, to investigate and respond to your claim. If the hotel acknowledges the error, confirm the timeline for the correction to appear on your statement.

Preparing and Initiating a Credit Card Dispute

If direct resolution with the hotel proves unsuccessful or is not feasible, the next step involves preparing to dispute the charge with your credit card company. Before contacting your credit card issuer, compile all pertinent transaction details, including the exact amount, date it posted, and the merchant’s name as it appears on your statement.

Clearly articulate the specific reason for the dispute, such as an unauthorized charge, incorrect billing, or services not rendered. Gather all available evidence supporting your claim, which may include booking confirmations, email correspondence with the hotel, personal notes from your stay, or documentation of your attempts to resolve the issue directly. Photos or other receipts from your trip that demonstrate the discrepancy can also be valuable.

Most credit card companies provide multiple channels for initiating a dispute, including online portals, telephone hotlines, or mail. When using an online portal, navigate to the specific transaction and follow the prompts to submit your dispute, attaching all supporting documentation electronically. If disputing by phone, be prepared to provide all gathered information. Time limits for initiating a dispute range from 60 to 120 days from the statement date on which the charge first appeared, so act promptly.

The Credit Card Company’s Investigation Process

After you initiate a dispute, the credit card company begins its formal investigation. They review the information you submitted to determine if the dispute meets the criteria for a chargeback. Many credit card companies issue a temporary credit to your account for the disputed amount, which remains on your account while the investigation proceeds.

The credit card company then notifies the hotel, the merchant, about the dispute. The merchant is given a specific timeframe, often between 30 and 45 days, to respond to the claim.

Once the credit card company receives the hotel’s response, or if no response is received within the allotted time, they review all submitted evidence from both parties. This review process can take several weeks, sometimes extending up to 90 days or more, depending on the complexity of the case. Throughout this period, the credit card company will communicate updates to you regarding the status of your dispute.

Understanding Dispute Outcomes and Next Steps

The investigation into a disputed hotel charge concludes with one of two outcomes. If the credit card company finds in your favor, the dispute is upheld, and the temporary credit becomes permanent. This means the charge is officially removed from your account, resolving the financial discrepancy. You will receive notification confirming the final resolution.

Conversely, the dispute may be denied if the credit card company determines the charge is valid or if there is insufficient evidence to support your claim. In this scenario, the temporary credit, if issued, will be reversed, and the charge will remain on your account. Common reasons for denial include the hotel providing compelling counter-evidence or a lack of documentation from your side.

Should your dispute be denied, and you still believe the charge is illegitimate, further action may be considered. You might attempt to re-engage with the hotel directly, perhaps with new information. For significant amounts, you could explore options with consumer protection agencies or small claims court, though these steps involve additional time and effort.