What does 'Authorization' indicate, and what does it not guarantee, for Even Hotels transactions?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Authorization: Approval by, or on behalf of, the Issuer to validate a Credit Card or Debit Card transaction. Authorization indicates only the availability of credit or funds at the time the Authorization is requested; it does not indicate that the person presenting the Card is the rightful Cardholder and it does not guarantee that you will not be subject to a Chargeback, an adjustment, or other Servicers Fees and Third Party Based Fees with respect to the authorized transaction.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, 'Authorization' in the context of credit or debit card transactions means approval by the Issuer to validate the transaction. This indicates that credit or funds are available at the time the authorization is requested.
However, the authorization does not guarantee certain aspects of the transaction. Specifically, it does not confirm that the person using the card is the rightful cardholder. This means that Even Hotels franchisees could still face issues if a stolen or fraudulent card is used, even if the transaction is initially authorized.
Furthermore, authorization does not protect the Even Hotels franchisee from potential chargebacks, adjustments, or other service fees and third-party based fees related to the authorized transaction. Therefore, while authorization confirms the availability of funds, franchisees must still take precautions to verify cardholder identity and manage the risk of disputes or additional fees after the transaction.