The Salil SOP Accounting - AC-003 Handling Refunds and Chargebacks

Standard Operating Procedure Issued Date: ACCOUNTING SOP No.: AC-003 Subject: Handling Refunds and Chargebacks Page 1 of 4 OBJECTIVE To establish a clear process for managing guest refunds and resolving chargeback disputes, ensuring accuracy, compliance, and guest satisfaction while protecting the hotel’s financial interests. POLICY 1. All refund requests and chargebacks must be verified, documented, and approved by authorized personnel. 2. Refunds will only be processed for valid claims as per hotel policy. 3. Chargeback disputes must be handled promptly with proper evidence submitted to payment providers. PROCEDURE 1. Processing Refunds 1.1 Receiving a Refund Request: • Ensure the refund request is submitted in writing or logged in the Property Management System (PMS). • Collect supporting documents, such as receipts or booking confirmations. 1.2 Verification: • Confirm the validity of the refund request by reviewing: o The guest’s booking details. o Charges applied to their account. o Circumstances leading to the refund request (e.g., service failure, cancellation policy). 1.3 Approval Process: • Obtain approval from the Financial Controller or General Manager for amounts exceeding pre-determined thresholds..

[Audio] Our presentation will cover obtaining approval for amounts exceeding pre-determined thresholds, focusing on the Standard Operating Procedure for handling refunds and chargebacks in compliance with our hotel policies. This includes proper methods for processing refunds through the same payment method as the original transaction, whether it be credit card, cash, or bank transfer. It is important to verify the guest's banking details before initiating a transfer. Documentation is crucial when it comes to refunds, and we will discuss the importance of recording detailed notes in the PMS or accounting system, including the guest's name, contact information, reason for the refund, and the amount refunded. Moving on to handling chargebacks, our procedure involves taking immediate action upon receiving a notification from our payment provider or bank. We will discuss the steps for investigating the claim, which includes gathering all relevant documentation and evidence, such as the guest's signed folio or receipts and our hotel policies on cancellations or payments. Lastly, we will emphasize the importance of responding to the payment provider within the stipulated time frame, with a detailed explanation and supporting evidence. We hope that this presentation has provided a clear understanding of the Standard Operating Procedure for handling refunds and chargebacks. Please feel free to ask any questions during the Q&A session. Have a great day!.

[Audio] In this presentation on obtaining approval for amounts exceeding pre-determined thresholds, we will discuss the Standard Operating Procedure for handling refunds and chargebacks. This procedure is crucial for efficient and proper management of these transactions. When resolving chargebacks, it is important to ensure that funds are credited back to the hotel's account if the chargeback is resolved in our favor. On the other hand, if the chargeback is upheld, the loss should be documented and the guest's profile updated accordingly. This helps maintain accurate records and prevent future occurrences. In terms of reporting and follow-up, all refunds and chargebacks should be included in the daily revenue reconciliation report to monitor recurring issues and make recommendations for policy or procedural changes. It is also important to keep guests informed about the status of their refund or chargeback process to maintain good communication and customer service. Professionalism is essential when communicating with guests and payment providers, and we must adhere to both local regulations and payment provider policies. Additionally, we must maintain confidentiality of guest financial information throughout the process. Let's view chargebacks as an opportunity to improve our processes and reduce future occurrences. Thank you for your attention and we will now move on to the final slide of our presentation..

[Audio] Class, we are now on the final slide of our presentation on handling refunds and chargebacks in hotels, in compliance with hotel policies. This slide will cover the Standard Operating Procedure for this process. Let's discuss the important details of this procedure. Firstly, we will look at the date of issue and the SOP number, which is AC-003. This information is necessary for record-keeping purposes. Moving on, this procedure requires the approval of the Financial Controller or General Manager for any amounts that exceed predetermined thresholds. This ensures that all refunds and chargebacks are authorized and within the designated limits. As discussed in the previous slides, the process begins with verifying the reason for the request and gathering all necessary information. Once this is completed, the request is sent to the appropriate department for approval. The final step is to promptly resolve any disputes that may arise. This is crucial in maintaining a good relationship with our guests and upholding the reputation of our hotel. In summary, this procedure aims to streamline and ensure accuracy in handling refunds and chargebacks, in accordance with our hotel's policies. We will now look at the final section of this slide, which includes the designated department heads and the General Manager responsible for this procedure. Thank you for your attention throughout this presentation. It is imperative that we adhere to these procedures to maintain the highest quality of service for our guests and the smooth operation of our hotel. Thank you..