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Chargebacks & Prevention Policy

Effective Date: 7 Nov. 2025
Entity: Hostly Limited
Jurisdiction: Hong Kong SAR
Company Registration Number: 78966153

At Hostly Limited (“Hostly”, “we”, “our”, or “us”), we prioritize transparent, secure, and lawful payment operations. This Chargebacks & Prevention Policy outlines how chargeback disputes are managed, investigated, and prevented in coordination with regulated Payment Service Providers (PSPs) and banking partners.
1. Purpose
This policy ensures:
  • Transparent handling of disputed transactions;
  • Protection of both Customers and Contractors from unauthorized or fraudulent activity;
  • Full compliance with PSP and Anti-Money Laundering (AML) standards;
  • Efficient prevention and resolution of chargebacks through proper documentation and verification.
2. Definition
A chargeback occurs when a cardholder disputes a transaction directly with their bank or card issuer, resulting in a reversal of funds.
Chargebacks may arise due to:
  • Unauthorized or fraudulent transactions;
  • Duplicate or incorrect charges;
  • Service not received or cancelled;
  • Miscommunication between Customer and Contractor.
3. Hostly’s Role
Hostly acts solely as a technology intermediary and not as a financial institution or escrow service. All payments are processed through regulated PSPs that support Visa, Mastercard, and bank transfer systems. While Hostly does not hold user funds directly, we assist in documentation and coordination during the chargeback process.
4. Prevention Measures
To minimize chargebacks and fraudulent activity, Hostly employs the following preventive systems:
4.1 Verification & Compliance
  • KYC/KYB Verification: All users (Customers and Contractors) must undergo identity verification before conducting financial transactions.
  • 2FA (Two-Factor Authentication): Required for withdrawals, refunds, and sensitive actions.
  • AML Screening: Continuous monitoring to detect suspicious transactions or unusual patterns.
4.2 Transaction Transparency
  • Every transaction is timestamped and logged within the system.
  • Digital receipts, appointment details, and payment confirmations are automatically generated.
  • Users have full visibility into Pending, Available, Withdrawing, Settled, and Refunded payment states.
4.3 Clear Communication
  • Hostly promotes transparent communication between Contractors and Customers before and after service completion.
  • Service descriptions, cancellation windows, and refund terms are clearly displayed prior to booking or payment confirmation.
5. Chargeback Process
When a chargeback is initiated through a card issuer or PSP, the following process applies:
5.1 Notification
  • Hostly is notified by the PSP once a chargeback is filed.
  • A notification is sent to the affected User(s) for awareness and response.
5.2 Investigation & Documentation
Hostly retrieves all relevant records, including:
  • Timestamped payment logs
  • Appointment details
  • Communication history
  • Refund or cancellation requests
  • System audit trails
5.3 Resolution
  • PSPs review submitted evidence and determine whether the chargeback is approved or declined.
  • Resolution timelines vary by PSP and card network but typically take 30–60 days.
  • Users are informed of the outcome via registered email.
6. Valid & Invalid Chargebacks
6.1 Valid Chargebacks
Chargebacks may be considered valid if:
  • The transaction was unauthorized or fraudulent;
  • The service was not rendered due to Contractor fault;
  • Duplicate billing occurred;
  • An undisclosed technical or PSP processing error occurred.
6.2 Invalid Chargebacks
Chargebacks may be rejected or contested if:
  • The Customer did not attempt to resolve the issue directly through Hostly;
  • The transaction was verified and authorized through PSP systems;
  • The service was successfully rendered;
  • Refund or cancellation terms were ignored by the Customer;
  • The dispute was filed after settlement and outside the allowed dispute period.
7. Evidence & Dispute Support
Hostly maintains complete transaction records for a minimum of five (5) years, including audit trails and verification logs. This ensures accurate and transparent evidence submission during chargeback investigations.
Typical documentation includes:
  • Proof of payment authorization
  • System-generated invoice or receipt
  • Service completion logs
  • KYC confirmation and user account metadata
  • Communications and time-stamped appointment history
8. Administrative & PSP Fees
PSPs may apply chargeback handling fees or administrative penalties for each dispute. If a chargeback is found to be invalid or fraudulent, such fees may be passed on to the responsible User (Customer or Contractor) in accordance with PSP terms.
9. User Responsibilities
Customers must:
  • Ensure correct payment details before confirming transactions;
  • Review refund and cancellation terms before requesting a chargeback;
  • Contact Hostly or the Contractor directly to resolve disputes before escalating to PSPs.
10. Contact Information
For chargeback assistance, documentation requests, or dispute resolution, please contact:
Hostly Limited
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