Refunds, cancellations, and chargebacks for Vrbo Partner reservations are handled differently depending on your Merchant of Record setup and the circumstances of the reservation.
This article explains how guest cancellations are processed, what happens when refunds are issued, and who is responsible for managing chargebacks and payment disputes.
At a Glance
For Vrbo Partner reservations:
Refunds follow the cancellation policy assigned to the reservation
Free-cancellation reservations are processed automatically
Refunds are returned to the guest's original payment method
Refunds issued after a payout may be recovered from future payouts
Chargeback handling depends on your Merchant of Record setup
Hospitable provides chargeback protection when Hospitable is the Merchant of Record
Hosts remain responsible for chargebacks when Stripe is the Merchant of Record
A cancelled Vrbo Partner reservation showing refund information and payment activity
How Cancellations Work
Vrbo Partner reservations follow the cancellation policy assigned to the listing at the time of booking.
When a guest cancels a reservation:
The applicable cancellation policy determines the refund amount
Reservation records are updated automatically
Any approved refund is returned to the guest's original payment method
The amount refunded may be:
A full refund
A partial refund
No refund
depending on the cancellation policy and timing of the cancellation.
Free-Cancellation Reservations
Some reservations may qualify for a full refund during a free cancellation period.
When a guest cancels during the free cancellation window:
The cancellation is processed automatically
The refund is processed automatically
No host action is required
Hosts may receive notifications from Vrbo indicating that a cancellation request requires attention.
If the reservation qualifies for free cancellation under the listing's cancellation policy, the cancellation and refund are processed automatically.
How Refunds Are Processed
Approved refunds are returned to the original payment method used for the reservation.
After a refund is issued:
The guest receives confirmation of the refund
The refund appears on the original payment method
Processing time depends on the guest's bank or card issuer
Refund timing can vary by financial institution.
Refunds After a Payout Has Been Sent
In some situations, a refund may be issued after the reservation payout has already been sent when a booking needs to be altered to be shortened or for other reasons.
When this happens:
If your payout account linked have balance, the guest will still receive the approved refund
The refunded amount may be recovered from a future payout
The adjustment appears in payout and transaction records
This ensures the refund can be processed even after reservation funds have already been distributed.
Reservation Alterations
If a reservation is altered and the total price changes:
Additional charges may be collected if the reservation total increases
Refunds may be issued if the reservation total decreases
Any resulting payment activity is reflected in the reservation's financial records.
A reservation showing updated pricing after an alteration
Chargebacks and Payment Disputes
A chargeback occurs when a guest disputes a payment with their card issuer. Chargeback handling depends on the Merchant of Record selected for the reservation.
If Hospitable Is the Merchant of Record
Hospitable manages the dispute process
Hospitable submits supporting documentation when appropriate
Hospitable communicates with payment providers
Hospitable absorbs losses resulting from unsuccessful chargeback disputes relating to fraud and other covered cases.
Chargeback protection is included as part of Hospitable's payment processing service.
Hosts using Hospitable as the Merchant of Record are protected from liability for lost chargebacks.
If Stripe Is the Merchant of Record
Stripe manages the dispute workflow
The host is responsible for responding to disputes
The host is responsible for any resulting losses
Stripe's dispute policies and timelines apply
Hospitable does not provide chargeback protection for reservations processed through Stripe.
Hosts using Stripe as the Merchant of Record remain responsible for chargebacks and any resulting financial losses.
Traveler Service Fee Refunds
Vrbo collects and manages the traveler service fee separately from the reservation payment.
Questions about:
Traveler service fee charges
Traveler service fee refunds
Traveler service fee calculations
should be directed to Vrbo Support.
Vrbo determines and manages traveler service fee refunds according to Vrbo's policies.
Frequently Asked Questions
How is the refund amount determined?
The refund amount is determined by the cancellation policy assigned to the reservation and the timing of the cancellation.
Do I need to manually approve free-cancellation requests?
No. If the reservation qualifies for free cancellation under the cancellation policy, the cancellation and refund are processed automatically.
How long does it take for a guest to receive a refund?
After a refund is processed, the time required for funds to appear depends on the guest's bank or card issuer.
What happens if I refund a reservation after I have already received the payout?
The refunded amount may be recovered from a future payout and reflected in your payout records.
Who handles chargebacks?
This depends on the Merchant of Record:
If Hospitable is the Merchant of Record, Hospitable manages chargebacks and absorbs losses from unsuccessful disputes.
If Stripe is the Merchant of Record, the host remains responsible for chargebacks and any resulting losses.
What happens if a reservation alteration changes the price?
Additional charges or refunds may be processed depending on whether the reservation total increases or decreases.
Who handles traveler service fee refunds?
Vrbo manages traveler service fee refunds. Hosts and guests should contact Vrbo Support with questions about traveler service fee charges or refunds.