The cruise line industry was devastated by chargebacks in 2020 due to Covid-19. Since then, you would expect that chargebacks would’ve tapered substantially; however, they have not. Cruise ship chargebacks remain at large and have proven to be challenging to deal with for cruise companies.
You’ve come to the right place if you’re a cruise line looking to sink your chargeback problems dead in the water. At CB-ALERT, we have helped multiple cruise lines save time, money and stifle their chargeback problems.
*Note: We also offer chargeback prevention solutions for the travel industry.
- The cruise industry has been heavily impacted by the Covid-19 pandemic, with revenue falling over 70% and cruise ships being docked for months.
- Despite the expectation that chargebacks would decrease as things returned to normal, chargebacks for cruise lines have continued to rise.
- Cruise lines are particularly susceptible to chargebacks due to high ticket values, long lead times, and the potential for online fraud.
- Chargebacks not only disrupt daily operations and result in revenue loss, but they also harm the reputation of cruise lines and can lead to increased costs and complications in the future.
- CB-ALERT can help you lower chargebacks, save time, and stay alert with the latest chargeback measures.
What Are Cruise Chargebacks?
For several reasons, a cruise ship chargeback occurs when a customer calls their bank and disputes a purchase with a cruise line.
Customers often go to the cruise company before contacting their bank, but sometimes they will go directly to the bank.
Real-life example: A couple books a cruise getaway six months in advance. Days before the cruise, one of them becomes medically ill and must be admitted to the hospital.
The couple calls the cruise ship company, and the company explains that they have a no-refund policy. The couple then decides to take it up with their bank and file the dispute. After review, the couple won the case and refunded their money. The cruise line is now out all of the money from the initial transaction.
Why Are Cruises Susceptible To Chargebacks?
Cruise getaways are vulnerable to chargebacks for a few main reasons.
A few of the main reasons are:
- Payment dispute/cancellation
- Customer dissatisfaction
Payment disputes and cancellations
Payment disputes and cancellations can be a real pain for cruise lines. They cause revenue loss and damage the company’s reputation. These issues often arise from customer dissatisfaction or unexpected changes in their plans. As a result, cruise lines may have to issue refunds or deal with chargebacks, which can strain their finances even more.
Customer dissatisfaction issues
Customer dissatisfaction issues pose a significant challenge for travel companies after Covid-19. It is not simply a minor inconvenience but a crisis with far-reaching consequences.
These customer dissatisfaction issues have a profound impact on the overall operations and profitability of travel companies. Therefore, companies must address and mitigate these issues effectively to safeguard their financial stability and reputation in the industry.
It’s crucial to ensure accurate marketing and honest communication about what customers can expect onboard. Dealing with such allegations requires knowledge of travel industry regulations and understanding credit card chargeback processes.
Some customers may file a dispute with their bank should they feel that the cruise line exaggerated or made promises they didn’t make good on during the cruise.
Why Do Cruise Ship Chargebacks Occur?
Chargebacks are frequent occurrences for cruise ships for several reasons:
- High-ticket transactions
- Advanced scheduling
- Fraud/identify theft
High ticket values make cruises an attractive target for fraudsters. The large sums of money in purchasing cruise tickets can entice criminals to try and exploit the system.
Long lead times also contribute to the occurrence of chargebacks. The gap between when customers purchase a cruise ticket and when they go on the cruise can lead to dissatisfaction. This dissatisfaction can result in disputes and chargebacks.
Additionally, online sales play a significant role in the occurrence of cruise ship chargebacks. Internet transactions open up opportunities for cybercrimes such as identity theft. This can lead to unauthorized charges and subsequent chargebacks.
Looking to sink your chargebacks? Please fill out the quick application below and start managing your chargebacks today.
Impact Of Chargebacks On Cruiseline Companies
The cruise industry bears the brunt of chargebacks, but the repercussions extend to the entire sector. The surge in chargebacks raises concerns about the safety of processing credit card transactions for cruise lines, leading to the following consequences:
- Impaired Reputation: Each chargeback represents customer dissatisfaction or disputes, which can undermine your credibility and trustworthiness.
- Heightened Risk Scrutiny: Frequent chargebacks may attract increased scrutiny from payment processors, financial institutions, and regulatory bodies.
- Customer Churn: Chargebacks contribute to customer attrition or churn.
- Disruptions in Operations: Addressing chargebacks diverts valuable resources and manpower from core business operations.
How To Prevent Cruise Chargebacks
Handling chargebacks and fraud is crucial for your cruise ship enterprise’s growth.
Implement the following prudent measures to mitigate chargebacks effectively:
- Deploy Robust Fraud Prevention Tools: Strengthen your defenses against fraud using advanced tools such as 3DS2 authentication, RDR, and Ethoca/Verifi alerts.
- Optimize Merchant Descriptor: Make your company easily recognizable using an accurate merchant descriptor matching your online storefront name. This clarity helps prevent confusion and reduces the likelihood of chargebacks.
- Partner With CB-ALERT: Collaborate with CB-ALERT to proactively eliminate fraudsters and prevent chargebacks from occurring in the first place.
- Ensure Transparent Transaction Details: Communicate transaction specifics clearly to your customers, including the purchase details, pricing, and associated fees. Clarity minimizes the chances of chargebacks resulting from customer misunderstandings.
- Prioritize Refunds Over Chargebacks: In most cases, offering a refund is more cost-effective than dealing with a chargeback. Refunds also enhance the possibility of retaining the customer’s loyalty.
- Round-the-Clock Customer Service: Exceptional customer service is pivotal in combating chargebacks. Prompt and satisfactory resolution of customer issues can prevent disputes from escalating to chargebacks.
- Use Clear and Concise Billing Descriptors: Ensure that the billing descriptor on your customer’s credit card statement is easy to comprehend, reducing confusion and, subsequently, the likelihood of chargebacks.
- Maintain Accurate Records: Keep detailed records of all transactions, including customer contact information, order specifics, and any customer communication. This documentation can be invaluable in chargeback disputes.
- Employ Chargeback Monitoring Systems: Utilize chargeback alert systems to address and manage dispute cases promptly.
- Scrutinize Irregular Orders: Be vigilant about orders that deviate from the norm, such as transactions from unfamiliar countries or vast amounts. Investigate these cases to ensure accuracy and security.
Stay Afloat And Sink Your Chargebacks
As a cruise ship company, you are familiar with the detrimental impact of chargebacks and friendly fraud on your company’s financial stability.
By partnering with CB-ALERT, we take the burden off your shoulders, saving you precious time battling chargebacks would otherwise consume. This lets you focus on managing your business efficiently and fostering continuous growth.
Here are some of the valuable assets we offer at CB-ALERT:
- Chargeback prevention alerts
- Round-the-clock customer service
- Transparent pricing
- RDR (Rapid Dispute Resolution)
- Visa compelling evidence 3.0
- Gateway/CRM agnostic approach
Are you looking to sink your chargebacks? Please fill out the application below to learn how we can help grow your business.