Airbnb ChargebacksHosted a Bad Guest on Airbnb? Things Could Get Worse After Checkout

Why Airbnb Chargebacks Happen & How You Can Respond

Founded in 2007 by Brian Chesky, Joe Gebbia, Nathan Blecharczyk as a way for hosts to rent out their couches and spare bedrooms for pocket money, Airbnb today is the largest short-term rental platform in the world.

With over 8 million listings in 200 countries, the platform pairs over 5 million hosts with more than 275 million active guests who book roughly 500 million nights per year.

Although Airbnb is largely a boon for short-term renters — the average host in the US earned $14,000 in 2023 — it’s not without its downsides. Bad guests, harsh reviews, and the hassles of communicating with guests are just a few of the many pain points that many Airbnb hosts face. Hosts also risk encountering chargebacks well after a stay has been completed.

In this article, we take a closer look at what Airbnb chargebacks are, how they work, and how hosts can fight back.

What is an Airbnb Chargeback?

An Airbnb chargeback occurs when a guest contacts their issuing bank to dispute a payment made on the Airbnb platform. The process is comparable to that seen on other vacation rental platforms like Vrbo.

If the bank investigates the claim and deems it to be valid, the guest is immediately offered a provisional credit by their issuer. Next, funds are removed from the merchant’s account (i.e. Airbnb) and returned to the guest’s card.

Because Airbnb acts as the merchant of record for on-platform bookings, the company handles the dispute process on behalf of the host. However, funds are ultimately clawed back from the host if the chargeback is decided in the guest’s favor.

When Can Guests File Airbnb Chargebacks?

Guests can initiate an Airbnb chargeback once a transaction with Airbnb settles. Since Airbnb collects payments upfront for short stays of under 28 days, guests can technically file chargebacks before they ever stay at a host’s property. Provided guests book in advance and identify the charge soon enough, of course.

This can occur if a guest encounters a fraudulent or unauthorized Airbnb charge. A preemptive Airbnb chargeback can also happen if a customer makes a booking, then later decides they want to cancel, but uses a chargeback to circumvent proper cancellation policies.

Other times, guests may file chargebacks after they complete their stay. For example, a guest may allege that the host was openly hostile, the listing was misleading, or that the property was unsafe or unclean. Of course, some guests may also file completely invalid chargebacks in the hopes of getting a free vacation (more on this in a second).

No matter the reason, guests have a limited window of time to file an Airbnb chargeback. The standard chargeback time limits set by card networks apply here; generally, this is 120 days following the on-site business date.

Learn more about chargeback time limits

Valid & Invalid Reasons to File an Airbnb Chargeback

Of course, the reason why a cardholder requests an Airbnb chargeback does matter. Guests can file valid Airbnb chargebacks under specific, limited circumstances. These include:

• Unauthorized Transactions: A cardholder encounters an Airbnb transaction they didn’t make (i.e. it was due to unauthorized activity or third-party fraud).
• Airbnb Billing Errors: An Airbnb guest who is double charged or billed more than the amount stated at checkout.
• Inaccurate Listing: A guest discovers that an accommodation deviates significantly from a listing in terms of location, room count, or amenities.
• Unsafe or Uninhabitable Accomodation: A guest arrives at an accommodation that is infested, unclean, or otherwise hazardous to human health.

Virtually any other reason for an Airbnb chargeback is invalid. Common invalid reasons for chargebacks include:

• Forgetting a Purchase: A guest encounters a scheduling conflict because they forgot about their booking.
• Buyer’s Remorse: A guest regrets their Airbnb booking after having made it.
• Misinterpreting Listing Details: Misunderstanding guest restrictions, pet restrictions, or language about utility surcharges or cleaning fees.
• Minor Disagreements: The guest disagrees with a host about relatively inconsequential items like check-in or checkout times.

Here are a couple of examples of stories from real-life Airbnb users. Let me know in the comments: are these users entitled to a chargeback?

Reasonable to Request Refund? Or Expectations Unreasonable? [United States]
byu/CCMZ333 inAirBnB

Hacked - Do I chargeback or keep talking ? [USA]
byu/eidahl inAirBnB

Airbnb Disputes vs. Airbnb Chargebacks

To clarify a common misconception, Airbnb disputes aren’t really the same as Airbnb chargebacks.

An Airbnb dispute refers to disagreements between guests and hosts that are resolved on-platform. This is often done through Airbnb’s Resolution Center or AirCover, a complimentary protection program for hosts.

On the other hand, Airbnb chargebacks happen off-platform and involve the guest’s issuing bank. Once the chargeback process kicks off, Airbnb no longer has the power to intervene. Instead, Airbnb will liaise directly with the guest’s issuer. The company may request information from the host to try and respond to the chargeback if it’s related to an invalid claim. But, they’re no longer able to intervene and resolve the issue directly.

How Hosts Can Prevent Airbnb Chargebacks

Airbnb chargebacks are particularly damaging for hosts because they result in both lost revenue and lost booking availability. For example, a host who is hit with a friendly fraud chargeback from a guest following a stay will essentially have involuntarily gifted a free stay to a guest-turned-fraudster.

To minimize the risk of Airbnb chargebacks, hosts can consider:

On Airbnb, hosts can apply one of four different cancellation policies to their listings. These range from firm, which offers guests no refund for cancellations within seven days of the start of a stay, to flexible, which provides full refunds to guests who cancel within 24 hours of the start of their stay, along with partial refunds for mid-stay cancellations.

Generally speaking, a stricter cancellation policy is more likely to trigger animosity (and therefore potential chargebacks) from guests than a flexible one. While last-minute cancellations aren’t ideal, hosts who want to avoid chargebacks may wish to apply more flexible, guest-friendly cancellation policies to their listings.

Guests who find it easy to iron out disagreements with hosts (or even Airbnb) directly are less likely to turn to their issuers. For this reason, hosts can prevent chargebacks simply by being available, helpful, and proactive.

This means addressing guest questions thoroughly and accurately, responding to complaints or concerns with professionalism and enthusiasm, and offering small concessions or accommodations, like early check-in or late checkout when possible.

In addition to helping hosts avoid false accusations or invalid chargeback claims, documenting each stay can provide hosts with compelling evidence should chargebacks arise.

Some examples of documentation that you can submit include screenshots of communications with the guest, before and after pictures of the listing, pictures of utility bills, and specific documentation regarding damages, wear, or tear.

Guests have up to 60 days from the reservation’s checkout date to submit a dispute through the Airbnb Resolution Center. But, hosts should attempt to respond as soon as possible; within 24 hours is ideal.

Hosts who respond quickly to guest concerns, and who are willing to offer partial or full refunds if necessary, can better satisfy guests, keep disputes on-platform, and avoid off-platform Airbnb chargebacks.

Need Help?

Whether you’re a host on Airbnb, a vendor on eBay, or a merchant who accepts PayPal, no platform is immune from chargebacks. But, that doesn’t mean you have to write-off chargebacks as just another “cost of doing business.”

With the right tools and technology — like dual-layered chargeback detection and representment solutions from Chargeback911® — hosts and merchants alike can keep friendly fraudsters at bay. Contact us for a no-obligation ROI analysis today.