---
title: Visa's View on No-Shows and Cancellation Policies - The Customer is Priority
description: Visa has a strict rule about no-shows that provides the customer/guest/cardholder with the upper hand in the instance of a chargeback.
---

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# 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.

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 Scheme Rules](https://help.kovena.com/hs-fs/hubfs/Visa%20Scheme%20Rules.png?width=550&height=590&name=Visa%20Scheme%20Rules.png)**

**The workaround for the merchants:**

- Update your policy to charge one night for no-shows, and reflect this clearly in T&Cs, confirmations, and the website.

- Alternatively (as advised by our acquirer), position fully non-refundable stays as **prepaid / pre-purchase** transactions with clear disclosure, which is more likely to fall outside the no-show rule.
- For online bookings of *more than one night*, collect the funds for these type of bookings using an alternative method, i.e Master card or bank transfer. Restrict Visa cards.

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