Chargebacks are up 50% on pre-pandemic levels and travel merchants are being held liable for many illegitimate claims, according to the GDS
Amadeus and Chargebacks911 to combat fraudulent airline and agent claims
by Aidan Poole
Chargebacks911 has reached a deal with Amadeus to prevent airlines and travel sellers from suffering losses due to payment disputes.
Amadeus claimed that chargebacks are up by 50% since pre-pandemic levels, meaning that cardholders can be reimbursed for payments on illegitimate grounds at the expense of travel suppliers.
Industry players are left without the resources and data to efficiently handle such disputes, with one in every eight chargebacks now related to travel purchases, according to the GDS.
The tie-up sees the launch of Amadeus Chargeback Management powered by Chargebacks911 to automate and outsource the handling of chargebacks, which are often resolved without challenge in favour of cardholders.
Airlines and travel sellers can use the GDS service through the Xchange Payment Platform (XPP) to spot fraudulent chargeback disputes with detailed payment information and automated responses that increase company efficiency.
Monica Eaton, founder of Chargebacks911, said: “Unfortunately, if passengers miss a flight or if their plans change, some decide to raise an illegitimate chargeback.
“Periods of recent disruption have increased awareness of chargebacks amongst travellers, and the ease with which disputes can be raised via mobile banking apps mean high volumes are a significant issue.
“Our partnership with Amadeus lifts the burden, so airlines can focus on their core business.”
Damian Alonso, head of platform, partnerships and payments at Amadeus, said: “Travel companies told us chargebacks have increased by 50% on average since the pandemic.
“Addressing the issue is a high priority for 70 percent of firms we surveyed, and it’s easy to see why.
“It is estimated fraudulent disputes cost airlines upwards of $1 billion annually.
“By combining our travel and payment information with Chargeback 911’s specialist service, the industry can automatically spot and efficiently resolve disputes.”
Amadeus XPP is used by over 100 airlines worldwide as an in-house solution to optimise payment management across channels.