What does the Crowne Plaza FDD state regarding the hotel's understanding of disabling the preferred CVM?

According to the 2025 Crowne Plaza FDD, the hotel acknowledges the risks associated with disabling the preferred Card Verification Method (CVM) for chip card transactions. The FDD states that FreedomPay will not be liable for fraud claims or chargebacks if the hotel disables the preferred CVM requirements or suppresses them in any way. This means that if a Crowne Plaza hotel chooses to disable the preferred CVM, it assumes all risks, including liability for chargebacks resulting from fraud claims, even if the hotel has implemented EMV (Europay, MasterCard, and Visa) technology through FreedomPay.

The FDD clarifies that a fraud claim will result in a lost chargeback to the hotel despite the implementation of EMV by FreedomPay in the hotel's system. This is a significant risk for franchisees, as they will be solely responsible for any financial losses due to chargebacks if they choose to disable the preferred CVM. The FDD emphasizes that the hotel has been informed and fully understands these potential consequences.

In practical terms, a Crowne Plaza franchisee must carefully consider the implications of disabling the preferred CVM. While there might be operational reasons to do so, such as streamlining the payment process, the financial risks associated with potential fraud and chargebacks are substantial. Franchisees should weigh the potential benefits against the risk of increased liability and consult with FreedomPay and their acquiring banks to fully understand the implications before making any decisions about CVM settings. This is a critical aspect of managing financial risk and ensuring compliance with payment processing protocols.