Under what circumstances will Even Hotels charge an excessive Chargeback fee?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.5 Excessive Chargebacks. If your Chargeback percentage for any line of business exceeds the estimated industry Chargeback percentage, you shall, in addition to the Chargeback fees and any applicable Chargeback handling fees or fines, pay us an excessive Chargeback fee for all Chargebacks occurring in such month in such line(s) of business.
Each estimated industry Chargeback percentage is subject to change from time to time by us in order to reflect changes in the industry Chargeback percentages reported by Visa, Mastercard or Discover.
Your Chargeback percentage will be calculated as the larger of (a) the total Visa, Mastercard and Discover Chargeback items in any line of business in any calendar month divided by the number of Visa, Mastercard and Discover transactions in that line of business submitted that month, or (b) the total dollar amount of Visa, Mastercard and Discover Chargebacks in any line of business received in any calendar month divided by the total dollar amount of your Visa, Mastercard and Discover transactions in that line of business submitted in that month.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, an excessive Chargeback fee may be charged if the franchisee's Chargeback percentage for any line of business exceeds the estimated industry Chargeback percentage. This fee is in addition to the standard Chargeback fees and any applicable Chargeback handling fees or fines.
The estimated industry Chargeback percentage is subject to change by FreedomPay to reflect changes reported by Visa, Mastercard, or Discover. The franchisee's Chargeback percentage is calculated as the larger of two values: (a) the total Visa, Mastercard, and Discover Chargeback items in any line of business in any calendar month divided by the number of Visa, Mastercard, and Discover transactions in that line of business submitted that month, or (b) the total dollar amount of Visa, Mastercard, and Discover Chargebacks in any line of business received in any calendar month divided by the total dollar amount of the franchisee's Visa, Mastercard, and Discover transactions in that line of business submitted in that month.
It is important for Even Hotels franchisees to monitor their Chargeback percentages and stay informed about changes to the estimated industry Chargeback percentages to avoid incurring excessive fees. Franchisees should promptly and carefully review statements or reports reflecting card transaction activity and any associated fees. If discrepancies or errors are believed to exist, the franchisee must notify FreedomPay in writing within 90 days of the date of the related statement or reports. Failure to do so may result in FreedomPay not being obligated to investigate or effect any related adjustments, unless there was gross negligence or willful misconduct on their part.