VRBO customer issued chargeback, I won, they 're-issused' I lost?

Question

Having a hell of a month. Had a very bad customer interaction where long story short, they demanded a refund, I refused.

Few weeks pass, VRBO refuses to refund them. They go to their CC and issue a chargeback.

Month passes, I get notification from VRBO that I won and the money was issued back to me.

A Week later, I get another notification from VRBO that they issued a second chargeback(How is this possible?) and when I asked for more info, this is precisely the response I got:

"Our chargeback team was initially able to defend the transaction successfully however, the traveler filed a second chargeback. Each appealed chargeback (also referred to as a second chargeback) is reviewed on a case-by-case basis to determine if we are going to successfully be able to win in arbitration. Second chargebacks are only evaluated on the process, and not on the case itself. Unfortunately, we are unable to dispute this additional dispute and this chargeback is considered lost therefore, the funds were returned to the traveler.

Please note that the final determination of the chargeback dispute rests in the hands of the card holder’s financial institution, and not our own.

There is no guarantee that an appealed chargeback (also referred to as a second chargeback) will receive the same outcome as a first chargeback. We know that an appealed chargeback can seem very unfair. Unfortunately, we are unable to change or dispute the decision of an appealed chargeback. While chargebacks can be a frustrating part of participating in the credit card network, they are also a critical element that helps protect cardholder rights. The unpredictable nature of chargebacks is why we encourage hosts to try to come to a resolution before the guest feels like they do not have any other options."

Does anyone have experience with this, or understand what they're talking about? Can all of my customers just decide to do this from now on? What is preventing them from taking advantage of me? How do I fight this if VRBO is refusing to do anything on my behalf?

Lauren Kormylo · Answer

@John Majoris I looked back through convos on FB on the subject, and it looks like VRBO is the one doing it, not Airbnb. It seems like VRBO doesn't think it's worth the cost of fighting the chargeback a second time. Of course, when a guest doesn't pay, the owner is losing a lot more money than VRBO is. Besides a photo ID, owners who have been through this recommend having a signed rental agreement from guests, outside of VRBO, so they have proof of what the guest agreed to, including any cancellation policy.

Whitney Griffith · Answer

Thanks! This is the best response I’ve seen on how to handle it. I’ll let this one go, but at least you had a good idea to resolve the case.

Scott K. · Answer

They stayed 1 night then left. At the time I offered a half refund which they refused.

John Underwood · Answer

Did they cancel at last minute and not actually stay at your place or did they in fact stay there?

Account Closed · Answer

Sounds like she understands how the game is played and is using it to her advantage. VRBO won't require proof she had travel insurance, they will just stop working on it when they hear that.

If you want to get her attention to resolve the issue, start a small claim in small claims court. It's pretty simple paperwork, just costs a few dollars and if she doesn't show up in court, the judge will usually award the judgment to you. When you have the judgment, let her know that you intend to file it and that it will ruin her credit. If she cares about her credit, (maybe she doesn't care), there are services that will file the judgment and it will be reported on her credit report creating a problem for her far longer and worse than she expects. Collecting is always the issue though, that's the tough part.

It isn't a difficult process, but unless it's enough to go through the steps, just move on with life and be aware it's part of being in business.

Account Closed · Answer

Did VRBO allow you to give a bad review for them?

Henry T. · Answer

Small claims? You have to find them and then serve them where they sleep. Might not be easy if they live in another state. Aside from that, I require an ID from each STR client. Like a hotel. I make them text, message, or email it.

Whitney Griffith · Answer

Was anyone successful getting a second chargeback reversed? I just got the same letter from Vrbo. My situation is a guest canceled last minute, and the cancellation policy was no refund that late. She said her card had travel insurance, but I guess not. The first chargeback was won in my favor, but not the second one.

Shane H. · Answer

@Scott Kunz

So if we assume you were in the right to refuse a refund, then it sounds like VRBO has a policy of not disputing 2nd chargebacks. But having left after 1 night wed obviously all love to know what the dispute was. If they left for a legitimate reason then VRBO could have received more details and determined it was not worth fighting.

VRBO customer issued chargeback, I won, they 're-issused' I lost?

VRBO customer issued chargeback, I won, they 're-issused' I lost?

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