A no-show fee is the one-night/one-day charge that merchants collect for hotel reservations and car rental bookings that were made but not used, and that should have been canceled but were not. In short, it refers to an unused and uncanceled reservation.
Can a no-show fee be charged for more than one night/day?
A no-show fee can be charged to a credit card if the cardholder is informed of it at the reservation stage and the cardholder approves it. Even if the contract made with the cardholder states otherwise, the merchant is not allowed to charge more than one night/day. If more than one night/day is charged, the cardholder has the right to file a chargeback dispute with their own bank. If the cardholder disputes the charge, the dispute will be resolved in their favor. Any no-show amount charged beyond one night/day is collected from the merchant and refunded to the cardholder's credit card.
In which cases is a no-show fee not charged?
For reservation-based transactions: for reservations made within 72 hours before the service date, a "No show" fee should not be charged for cancellations made up until 18:00 on the day of the service.
