How travel advisors can help minimize the risk of fraudulent bookings
Sometimes we're too eager to make a sale and miss some common signs that something just isn't right. As more and more people start to travel, it's important to notice the signs of fraud and how to minimize the risk of fraudulent bookings.
Common red flags that a booking is fraudulent:
- Last minute travel: The client wants to travel immediately (within a few days of booking) and doesn't seem to care about the price or duration of travel. This is especially common with air-only reservations and first-time customers. Some vendors offer last-minute deals, but if you have a new client you just met that wants to book on a whim, this is a cause for caution. Most new clients have a lot of questions and take some time to get to know you and decide on their trip details. New clients also don't generally book air-only reservations through a travel agent because they can easily do this themselves online. A good tip is to reserve last-minute deals for long-time clients you are familiar with and to never book air-only reservations.
- Suspicious address, email address, phone number, or credit card information: Take a moment and conduct some research on the client before booking any travel. An easy step is to google the client's address, email address, and phone number online to see if they seem legitimate. Red flags would be VOIP phone numbers, invalid addresses, or .edu and .org emails for fake institutions or have strange numbers or characters in them (Example: ChristinaD@Gobigbluehorseuniversity.edu or 12397865lksjdfuy@Amazon.com). Also, be cautious with foreign credit cards.
- The traveler's name does not match the name on the credit card: You always need to get a copy of the government-issued ID AND a signed and initialed credit card authorization form from the person whose name is on the credit card. If the client knows the cardholder, why isn't the cardholder signing for this transaction?
- Multiple credit card numbers provided: If the first card is declined and another card is provided, this might be an indication of fraud. Take note if this client keeps providing a new credit card number till one "works." We all run into card issues every now and then, but most travelers have prepared to pay for their trip and declining card numbers should clue you in that something may not be right.
- The departure city isn’t near the cardholder's billing address -or- in their itinerary: Unless you're also booking transfers, how is the client getting home? It may be the case the address they gave you isn't actually theirs. Ask the client why they aren't leaving from their home city or returning to it.
You should do a little more research into the client just to be sure they seem legitimate. A quick google or Facebook search may clear up the situation. It may also clue you into a problem, in which case it's better to politely decline the client's request.
What is a chargeback?
A chargeback is a transaction reversal initiated by a credit cardholder. It's offered to cardholders by a cardholder's bank or financial institution as a financial form of protection against fraudulent charges. They happen for a few different reasons:
- True Fraud: The card has been stolen and unauthorized use has resulted in compromised payment information.
- Friendly Fraud: This is a dispute by the cardholder with no malicious intent. Usually, in the case where a family member uses the card without permission, the cardholder forgets what the charge was for, misunderstanding about the conditions of sale, etc.
- Chargeback Fraud: A chargeback is used as a form of refund. Common in the travel industry, and usually happens when a client doesn't understand the cancellation policy -or- is not eligible for a refund, so they decide to charge back the cost of their trip.
It's important to note that the chargeback process is skewed in favor of the cardholder, so it is always important for the advisor to receive a CCAuth Form from the cardholder.
How do I fight a chargeback?
The advisor must provide proof that the cardholder was involved in the booking, authorized the credit card transaction, was provided the terms and conditions of the booking, and either refused or accepted trip protection/travel insurance. You will need to provide:
- A copy of the card holder's government-issued ID to prove the identity of the cardholder was validated.
- A signed credit card authorization form from the cardholder to prove the cardholder authorized the transaction.
- An initialed credit card authorization form that clearly shows the terms and conditions of the booking were accepted by the cardholder, and that the trip protection/insurance was accepted or declined.
The good news is, this is all on one form that Levarté has provided to you! The Credit Card Authorization Form you can use for your bookings is located on your Advisor Hub under Documents from the Resource Center. Be sure to also get a copy of the cardholder's government-issued ID.
Can I use the vendor's credit card authorization form?
Yes, as long as the form also has a place for the client to confirm they understand the booking terms and conditions AND allows them to accept or refuse trip protection/travel insurance. Some vendors may even require you to get their own credit card authorization form signed. There are also other credit card authorization form templates online that you can use.
If you decide to use another credit card authorization form, just make sure you are getting in writing that the cardholder authorizes the charge to their credit card, has reviewed the booking's terms and conditions, and that they have either accepted or refused trip protection/insurance. Also, get a copy of their government-issued ID to verify the client's identity. If it is a family member or a friend, you do not need to get a copy of their ID.
What if my client's refund is taking too long to receive from the vendor?
Contact the vendor and work with them to help your client receive a refund. Even if the refund process is taking a bit longer than the client anticipated, NEVER encourage your client to chargeback for a refund. The chargeback process can take over 6 months depending on the vendor or bank, and you will be held liable to pay back the funds either to the vendor or Levarté Travel.
Bottom line: As travel begins to pick up, and in the digital age when booking online is so easy fraud increases. Although nothing can prevent fraud 100% of the time, the credit card authorization form is an important resource we've provided to help protect you and your business.