Can an Even Hotels franchisee charge an amount for a card transaction that is subject to a dispute?

According to Even Hotels' 2025 Franchise Disclosure Document, an Even Hotels franchisee cannot charge an amount for a card transaction that is subject to a dispute. The FDD states that each card transaction must represent a valid obligation for the amount shown and that the amount charged for each card transaction is not subject to any dispute, set-off, or counterclaim. This means that at the time of the transaction, the amount being charged to the cardholder should be undisputed.

If a cardholder later disputes a transaction, it can lead to a chargeback. Even Hotels franchisees are responsible for reimbursing the company for all transactions that are charged back, including the chargeback amount, fees, fines, penalties, and other related costs. The franchisee may dispute a chargeback as provided in the Card Organization Rules. However, Even Hotels' obligation is limited to presenting the franchisee's dispute to the appropriate Card Organization.

Furthermore, the FDD outlines scenarios where the Even Hotels franchisee may be liable for fraud or chargebacks, such as when the preferred Card Verification Method (CVM) is not used for chip card transactions. If a consumer disputes a transaction where the preferred CVM was not used, the hotel may be liable for fraud or chargebacks, even if it was an EMV transaction. The franchisee acknowledges that disabling preferred CVM requirements is at their sole risk, and Even Hotels has no liability for fraud claims or chargebacks resulting from such disablement.