Visa's View on No-Shows and Cancellation Policies

Typically a business/merchant's policy may state that when a guest/cardholder cancels late (within X amount of days prior to check-in) or does not show up for his her booking (no-show) they are entitled to charge the guest/cardholder a large percentage if not the complete total of their booking value.

For eg. a guest/cardholder books to stay at Property YZ for a total of 5 nights and confirms that he/she is definitely going to come but does not show up to the property. Property YZ is permitted to charge the guest/cardholder the total of 5 nights according to their policies which the guest/cardholder would have read, understood and accepted at the time of booking.

Unforunately for the merchant, Visa protects the cardholder in the scenario above. The guest/cardholder may raise a chargeback for the reason of Cancelled Services/Merchandise not Received. Though the property would likely submit a copy of their cancellation policy as proof that at the time of booking the guest/cardholder was made aware, the scheme's rule entitles and limits the property to only charge the guest/cardholder for ONE NIGHT only.

Visa's View on No-Shows and Cancellation Policies - The Customer is Priority

While the scheme's rules were designed to protect both the merchant and the cardholder, the cardholder usually has the upper hand.