Regarding chargebacks, does Even Hotels or the issuer have the final say in the resolution of chargebacks?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
With respect to Chargebacks – we do not decide which transactions are charged back and we do not control the ultimate resolution of Chargebacks.
While we can attempt to reverse a Chargeback to the Issuer, we can only do so only if the Issuer agrees to accept it or the Card Organization requires the Issuer to do so after a formal appeal process.
Sometimes, your customer may be able to successfully chargeback a Card transaction even though you have provided your goods or services and otherwise are legally entitled to payment from your customer.
While you still may be able to pursue claims directly against that customer, neither we nor the Issuer will be responsible for such transactions.
You are responsible for all Chargebacks and adjustments associated with the transactions that you submit for processing.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, Even Hotels does not have the final say in the resolution of chargebacks. While Even Hotels can attempt to reverse a chargeback to the issuer, they can only do so if the issuer agrees to accept it or the Card Organization requires the issuer to do so after a formal appeal process.
This means that the ultimate decision on whether a chargeback is successful rests with the card issuer or the Card Organization (like Visa or Mastercard), not with Even Hotels or its franchisees. The FDD emphasizes that Even Hotels franchisees are responsible for all chargebacks and adjustments associated with the transactions that they submit for processing.
This arrangement is typical in the franchise industry, where franchisees are directly responsible for customer transactions. While Even Hotels can assist in the process of disputing a chargeback, the franchisee bears the financial risk. This highlights the importance of careful transaction processing and customer service to minimize chargebacks.
Furthermore, the FDD states that if the preferred Card Verification Method (CVM) is not used, the hotel may be liable for fraud or chargebacks, even if it was an EMV transaction. FreedomPay is not liable for any fraud or chargebacks to the hotel if a PIN key is available for the hotel's implementation. The hotel acknowledges that any disablement of the preferred CVM requirements for chip cards is at the hotel's sole risk, and FreedomPay has no liability for fraud claims or chargebacks.