Hotels and property managers are handling more digital payments than ever before. Online reservations, contactless check-ins, and mobile wallets have revolutionized convenience but they’ve also created new risks. Fraud and chargebacks now cost the hospitality industry billions each year, draining profits and eroding guest trust.
This chart illustrates the average chargeback rate in the travel and hospitality sector, which stands at approximately 0.89% of all transactions. The remaining 99.11% represent successful transactions. Although this percentage may seem low, even a small number of chargebacks can significantly impact profit margins due to refund costs, dispute fees, and administrative time.
The Hidden Cost of Chargebacks
Each dollar lost to a chargeback costs about $2.40 in fees, admin time, and lost revenue (Chargebacks911, 2025).
Common reasons in hospitality include:
Guests not recognizing the charge on their statement.
Fraudulent or “friendly fraud” bookings.
Cancellation and refund disputes.
PMS or gateway systems lacking full PCI compliance.
Why Security Matters More Than Ever
As hotels adopt mobile check-ins, digital keys, and online payments, compliance with PCI DSS (Payment Card Industry Data Security Standards) becomes non-negotiable. Every device and system that touches payment data must stay secure.
Best practices for property managers:
Tokenization & encryption: protect card data in transit and storage.
Two-factor authentication: reduce staff login breaches.
Automated chargeback prevention: block suspicious transactions early.
Guest verification tools: match ID and cardholder info in real time.
PMS Integration: The Front Line of Defense
A PCI-compliant Property Management System (PMS) integrated with a secure processor keeps guest data encrypted end-to-end. It removes manual handling of card details and limits exposure to fraud or data leaks.
Well-integrated systems don’t just simplify payments they reduce risks and ensure compliance across multiple guest touchpoints.
How Clearview Protects Hospitality Merchants
At Clearview, security is built into every transaction.
Through Chargeback Shield, property managers gain:
85% win rate on disputes.
Instant SMS alerts for new chargebacks.
24/7 fraud monitoring through a secure portal.
Native PMS integrations (OwnerRez, Barefoot, Hostaway) ensuring encrypted data flow.
Clearview’s proactive systems help businesses recover revenue and strengthen guest confidence.
The travel and hospitality industry reports an average chargeback value of $120 USD.
This highlights the financial impact of disputes and reinforces the importance of strong chargeback prevention strategies.
Fraud & Chargeback Rates by Transaction Type (2025)
| Transaction Type | Fraud Rate | Chargeback Rate |
|---|---|---|
| Online Card-Not-Present (CNP) | 1.9% | 0.8% |
| In-person / POS | 0.3% | 0.1% |
| Mobile Wallet | 0.4% | 0.2% |
| Recurring Billing | 1.1% | 0.6% |
Guest trust begins with secure payments. By adopting PCI-compliant tools, advanced fraud prevention, and integrated processors like Clearview, property managers can transform payment security from a liability into a long-term advantage.
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Earn more or save more by integrating Clearview payments. Whether you’re a PMS provider or an STR vendor, we help you deliver zero-fee payments, lower processing costs, and faster payouts.
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