On Oct. 8, the International Association of Exhibitions and Events (IAEE) released a new guidance resource for its members entitled Preventing Credit Card Chargebacks as a result of multiple recent reports of show organizers suffering chargebacks from exhibitors and attendees.
By definition, a credit card chargeback is the reversal of a credit transaction and occurs when either the card issuer or the card owner challenges a charge on a credit card account. Upon investigation of the claim, if the credit card company or issuing bank finds the charge to be unauthorized, fraudulent or mistakenly billed, a chargeback will be issued and the cardholder will no longer be responsible for payment.
Key points include:
• Knowing that the credit card user has leverage in choosing which credit card to use, credit card companies are keenly aware of this choice and do not want to risk losing business so it favors the consumer or business user in settling disputed charges to keep their business.
• Show organizers must carefully read contracts and terms held with credit card companies to ensure a clear understanding and any obligations that may lead to lost revenue.
• The show organizer can seek to enforce the exhibitor contract, regardless of whether the credit card company has denied payment since the exhibitor has used the space and must pay for it.
For additional information, visit the Web site at www.iaee.com/information__resources/credit_card_charge_backs.
