Receiving notice of a payment dispute on an online travel agency (OTA) booking can feel unsettling. When an online booking channel issues a virtual credit card (VCC) for a reservation, the cardholder or channel may dispute a transaction on their card statement under specific circumstances.Understanding why virtual card disputes happen—and knowing how to manage them—helps keep your property's billing accurate and your cash flow protected.
Here is a clear, simple guide to the most common reasons for virtual card disputes and how to handle them in your system.
It is important to also check the details on your extranet to see if the extranet has refunded the guest. If the extranet has refunded the guest you will need to refund the Virtual Card.
Common reasons for virtual card disputes:
- Cardholders and channel partners can dispute a virtual credit card transaction for several reasons:
- Incorrect charge amount: The amount debited from the card does not match the expected total, which can happen due to currency differences and fluctuating exchange rates.
- Duplicate transactions: The card was charged twice, which typically happens when a payment is processed automatically through NightsBridge and then captured manually again at the property.
- Wrong card used: An incorrect virtual credit card was accidentally used for a different booking.
- Waived fees (no-shows or late cancellations): The property waived the cancellation or no-show fees, meaning the amount to transact is less or should be zero (this usually happens with no-shows or bookings cancelled on or after the arrival date).
- Force Majeure cancellations: The reservation was cancelled under the channel's official Force Majeure policy due to exceptional external circumstances, more details here.
How to process reversals and refunds:
Handling virtual card refunds correctly ensures your payment records stay accurate and fully reconciled:
- Refund back to the virtual card: Reversals and refunds must always be processed via NightsBridge Pay directly back into the virtual card.
- Channel follow-up: Once the refund or reversal is completed in NightsBridge Pay, you can follow up directly with the extranet team to confirm resolution.