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5 Brilliant Ways to Prevent Chargebacks for Watersport Operators

| September 15, 2023 | 5 Min Read

| September 15, 2023 | 5 Min Read

Chargebacks can be a significant headache for watersport operators, causing financial losses and operational disruptions. Chargebacks occur when a customer disputes a credit card transaction, resulting in a refund of the purchase amount. While some chargebacks are legitimate, many can be prevented with proactive measures. Here are five brilliant ways to prevent chargebacks and protect your watersport business.

1. Implement Security Cameras at Your Location

Security cameras are invaluable tools for preventing chargebacks and resolving disputes. By installing cameras at key locations around your watersport facility, you can record all customer interactions and activities. In the event of a chargeback dispute, you can provide visual evidence to support your case.

Here’s how security cameras can help:

Incident Documentation

Capture video footage of the customer participating in the watersport activity. This can serve as evidence that the service was provided as described.

Damage Control

If a customer claims equipment was damaged or unsafe, review the footage to determine if the complaint is valid. Having evidence of well-maintained equipment can protect your business.

Transaction Verification

Ensure that the person using the credit card matches the cardholder. If a chargeback claim arises from unauthorized use, you can prove the cardholder was present.

2. Use Booking Software that Stores IP Data

Modern booking software should offer the option to store customers’ IP addresses when they make reservations or payments. IP data can be valuable for preventing chargebacks because it provides an additional layer of verification.

Here’s how it works:


IP data can be used to verify the customer’s location at the time of booking. This can help detect suspicious transactions, especially if the customer’s IP address doesn’t match the billing address on the credit card.

Fraud Detection

Analyze IP data for suspicious patterns, such as multiple bookings from the same IP address within a short period. This can be a red flag for potential fraud.

WaveRez users that use Stripe will be able to access the IP data for their customers. Stripe also includes tools that automatically recognize patterns of fraudulent activity, which will flag and deny the transaction.

3. Utilize Anti-Fraud Measures with Your Credit Card Processor

Work closely with your credit card processor to implement anti-fraud measures. Many processors offer fraud detection services that can help identify and prevent chargebacks before they occur. These measures may include:

Address Verification Service (AVS)

AVS checks the billing address provided by the customer against the address on file with the credit card issuer. A mismatch can trigger additional scrutiny.

3D Secure

This adds an extra layer of security to online transactions by requiring customers to enter a one-time code sent to their mobile device or email.

Velocity Checks

Monitor the frequency of transactions from the same card or account. Unusual activity can trigger alerts for potential fraud.

WaveRez uses Stripe as its payment processor and gateway, which utilizes advanced fraud protection features.

4. Re-confirm Large Bookings

For large group bookings or reservations that are significantly higher than your average transaction, consider implementing a re-confirmation process. Contact the customer a few days before the scheduled activity to confirm the reservation details. This can help prevent misunderstandings, no-shows, and subsequent chargebacks due to disputes over the reservation.

WaveRez users can go directly to their daily manifest for the next day to review all their reservations over the threshold they set. The phone numbers should be readily accessible to quickly make calls.

5. Track Email and Text Message Activity

Keep a record of all email and text message communication with customers. This documentation can serve as evidence in case of a chargeback dispute. Make sure to include important information such as booking details, cancellation policies, and any special instructions.
Additionally, use email and text messaging to confirm reservations, provide receipts, and offer customer support. Clear and consistent communication can help prevent misunderstandings and reduce the likelihood of chargebacks.

WaveRez users can view a log of customer activity including a timestamp of when they received their text and email confirmations. There is also the ability to confirm whether they have opened up the email. This information can be useful in not only preventing, but defending against chargebacks.

In conclusion, chargebacks can be a significant challenge for watersport operators, but by implementing these five brilliant strategies, you can reduce the risk of chargebacks and protect your business. Remember that prevention is key, and a proactive approach to fraud prevention can save you time, money, and headaches in the long run.

Let the WaveRez team save you time and money by developing a plan to prevent and defend against chargebacks. Not a customer yet? Sign up for a free demo and see why watersport operators are switching to WaveRez!

About the Author

Greg Fisher

Greg Fisher is the Co-founder and CEO of WaveRez, a leading platform revolutionizing watersports and activity reservations. With a passion for innovation and a keen understanding of the tourism industry, Greg has been instrumental in driving the company's growth and success. Under his leadership, WaveRez continues to set new standards in customer experience and operational efficiency.
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