This paper examines the growing impact of chargeback fraud on the hotel industry as digital and card-based payments continue to expand. It outlines common causes including criminal fraud, customer disputes, authorization failures, billing errors, and “friendly fraud,” where legitimate charges are intentionally disputed. The document explains the financial and operational damage caused by chargebacks and emphasizes a multi-layered prevention strategy. Recommended measures include stronger payment verification, secure payment systems, AI-driven fraud detection, employee training, transparent billing practices, and industry-wide collaboration to reduce fraud risk and protect customer trust.

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