1. Overview of MRHK.CO's Payout Code System
MRHK.CO's payment model operates on a deferred capture basis: your payment method is not charged until you arrive at the property and present your Payout Code to the Host. This creates two distinct phases relevant to cancellations:
- Pre-Arrival Cancellations: Before you have arrived and presented the Payout Code. No payment has been captured and no refund is required.
- Post-Payout Code Disputes: After you have presented the Payout Code and payment has been captured. Dissatisfaction with the property after this point is handled through the dispute process, not as a cancellation.
2. How the Payout Code System Works
2.1 Booking Process
- Guest submits a booking request and provides payment method details
- No payment is charged — a booking confirmation is issued and the Host's approval is awaited
- Host approves the booking request, forming a binding contract at the agreed price
- Guest arrives at the property at the agreed check-in time
- Guest presents the Payout Code to the Host at check-in
- Host enters the Payout Code into the platform, triggering payment capture
- Payment is charged to the Guest's method on file and processed to the Host following checkout
2.2 What the Payout Code Means
Important — Please read carefully:
Presenting your Payout Code to the Host is your authorisation for payment to be processed and activates your contractual licence to occupy the property. It is not a satisfaction rating or an optional step. Guests are required to present the Payout Code at check-in regardless of any concerns about the property. If you have concerns upon arrival, present the code and immediately initiate a dispute through your account dashboard. Withholding the Payout Code is not a permissible means of expressing dissatisfaction — it constitutes a payment default under the Service Agreement.
This system ensures that:
- Guests are not charged before arriving
- Hosts receive payment confirmation at check-in, consistent with their right to payment at the start of the stay
- Both parties have a clear and defined payment moment that anchors the booking contract
3. Pre-Arrival Cancellations
Since no payment has been captured, pre-arrival cancellations do not require a refund. The booking is simply released.
3.1 Guest-Initiated Pre-Arrival Cancellations
Cancellation Process:
- Log into your MRHK.CO account
- Navigate to "My Bookings" → "Upcoming Reservations"
- Select the booking you wish to cancel
- Click "Cancel Booking" and confirm your decision
- Receive immediate cancellation confirmation. The Host will be notified.
No Payment, No Refund Needed:
Since your payment method has not been charged, there are no refunds to process for pre-arrival cancellations. You cancel the reservation and no financial transaction occurs.
One Booking Per Property at a Time
Each confirmed booking represents a commitment to the Host for those dates. Hosts hold their calendar for confirmed bookings and may turn away other guests as a result. Guests who systematically book multiple properties for the same dates with the intention of cancelling all but one may have their accounts restricted or terminated for inventory manipulation.
Cancellation Timeline:
| Action | Timeline | Financial Impact |
|---|---|---|
| Guest manually cancels booking | Anytime before check-in | No charges, no refunds needed |
| System auto-cancellation | 24 hours after scheduled check-in time with no payout code entry | No charges, no refunds needed |
| Booking remains active | Until Guest presents Payout Code to Host | No charges until Payout Code presented |
3.2 Automatic System Cancellation
Automatic Cancellation Policy
If the Guest does not arrive and no Payout Code is entered within 24 hours of the scheduled check-in time, the platform will automatically cancel the reservation. This releases the Host's calendar for new bookings and closes the booking record. No financial transaction occurs.
Note for Hosts: The 24-hour auto-cancellation window is necessary to give late-arriving guests a reasonable grace period. However, the Host retains the right to manually mark a no-show and request cancellation through customer support before the 24-hour period if circumstances require it.
Auto-Cancellation Process:
- Check-in time passes without Payout Code entry
- 24-hour grace period begins for late arrivals
- System sends notifications to Guest at 12 hours and 2 hours before auto-cancellation
- Automatic cancellation occurs 24 hours after original check-in time
- Both parties notified of automatic cancellation
- Property calendar released for new bookings
3.3 Host-Initiated Pre-Arrival Cancellations
Valid Reasons for Host Cancellation:
- Property becomes uninhabitable due to emergency maintenance
- Force majeure events (natural disasters, government restrictions)
- Safety concerns that cannot be resolved before check-in
- Guest violation of booking terms discovered before arrival
Host Cancellation Process:
- Contact MRHK.CO customer service immediately
- Provide documentation of the cancellation reason
- Customer service reviews and approves legitimate cancellations
- Guest receives notification and rebooking assistance (no refund needed as no payment was captured)
Host Penalties for Unjustified Cancellations:
- First offense: $100 cancellation fee + listing suspended for 7 days
- Second offense: $250 cancellation fee + listing suspended for 30 days
- Third offense: Account termination and permanent platform ban
Penalty fees are deducted from future payouts or debited from the Host's account on file in accordance with the Service Agreement. Hosts may appeal a penalty determination by contacting disputes@mrhk.co within 14 days.
4. Post-Payout Code Disputes
Once the Payout Code has been presented and payment captured, the booking is confirmed and the Guest's licence to occupy is active. Issues arising after this point are handled through the platform's dispute process — not as cancellations. There is no "cancellation" after the Payout Code has been entered.
4.1 Guest Disputes After Check-In
Grounds for a Dispute:
- Safety hazards: Immediate threats to guest safety discovered after arrival
- Severe misrepresentation: Property materially different from the listing in ways that affect habitability or core use
- Uninhabitable conditions: No functioning heat, water, or electricity; severe cleanliness issues
- Host misconduct: Harassment, unauthorised entry, or privacy violations by the Host
- Force majeure: Natural disasters or government-mandated evacuations during the stay
Dispute Process:
- Document immediately: Take photos or videos of the issue before leaving the property
- Initiate dispute: Open a dispute through your account dashboard as soon as possible and no later than 24 hours after check-out
- Contact Host: For non-safety issues, the platform will ask the Host to respond within 24 hours before escalating. For safety emergencies, escalate directly to the platform — do not wait.
- Provide evidence: Upload photos, videos, and a written description within 72 hours of opening the dispute
- Platform review: Customer service investigates within 3–5 business days
- Resolution: Approved refunds processed within 5–10 business days
Safety Emergencies
If you believe you are in immediate danger, leave the property and contact emergency services first. Do not wait for platform response in a genuine safety emergency. Contact the platform at support@mrhk.co as soon as you are safe.
Evidence Requirements:
- Photos: Clear images showing the issue (max 10 images, 5MB each)
- Videos: Video evidence if applicable (max 2 minutes, 50MB each)
- Timestamps: Evidence should show date and time where possible
- Communication Records: Platform messages between Guest and Host
- Third-Party Documentation: Police reports, medical records if applicable
Refund Outcomes for Approved Disputes:
| Dispute Ground | Guest Refund | Platform Fee | Additional Assistance |
|---|---|---|---|
| Safety hazards (verified) | 100% of remaining nights | Non-refundable | Alternative accommodation assistance |
| Severe misrepresentation (verified) | 100% of remaining nights | Non-refundable | None |
| Uninhabitable conditions (verified) | 100% of remaining nights | Non-refundable | Reasonable documented expenses |
| Host misconduct (verified) | 100% of remaining nights + current night | Non-refundable | None |
| Minor issues | Partial refund (case-by-case) | Non-refundable | Host remediation required |
Approved refunds are processed by reversing the relevant portion of the payment to the Guest, with corresponding adjustments to the Host's payout. Platform service fees are non-refundable except in approved force majeure events.
4.2 Host-Initiated Guest Removal During a Stay
A Host may require a Guest to vacate the property mid-stay in the circumstances listed below. For genuine safety emergencies or illegal activity, the Host is not required to obtain platform approval before requiring the Guest to leave — the Host should act to protect safety and notify the platform immediately thereafter.
Valid Grounds for Guest Removal:
- Property damage: Intentional or reckless damage to property or furnishings
- Occupancy violations: Exceeding maximum guest capacity stated in the listing
- Noise or disturbance violations: Repeated violations after at least one documented warning
- Illegal activities: Drug use, criminal activity, or other illegal conduct on the property
- Safety violations: Conduct endangering other guests, neighbours, or the property
Host Process for Guest Removal:
- Document violations: Photo or video evidence and written records of any prior warnings
- Require departure: For safety emergencies or illegal activity, act immediately to protect safety
- Notify platform: Contact customer service at support@mrhk.co within 2 hours of requiring departure, providing evidence
- Platform review: Customer service reviews the removal and determines the applicable refund outcome
Refund Outcomes for Host-Initiated Removal:
| Violation Type | Guest Refund for Remaining Nights | Host Payout for Remaining Nights | Platform Fee |
|---|---|---|---|
| Property damage (verified) | 0% | Remaining nights held pending damage assessment; not automatically forfeited to Host | Retained |
| Occupancy violations | 50% of remaining nights | 50% of remaining nights | Retained |
| Noise violations (documented) | 25% of remaining nights | 75% of remaining nights | Retained |
| Illegal activities (verified) | 0% | Remaining nights retained; platform may report to law enforcement | Retained |
For property damage, remaining nights funds are held by the platform pending damage assessment. The Host must submit documented evidence of damage costs within 7 days of the Guest's departure. Funds are released to the Host up to the verified damage amount; any excess is returned to the Guest. Platform service fees are retained in all Host-initiated removal cases.
Property Damage — Platform Coverage Limitation
MRHK.CO does not provide insurance or compensation programmes for property damage caused by guests. The platform's role in damage situations is limited to holding and distributing the relevant portion of the booking payment. Hosts requiring coverage beyond the booking amount must pursue claims through:
- Their own short-term rental insurance or homeowner policy
- Direct legal action against the Guest
- Small claims court proceedings
- Third-party damage protection services
5. Emergency Cancellations and Force Majeure
5.1 Covered Events
Force majeure relief is available for events that make travel or occupancy physically impossible or illegal — not merely inconvenient. The following events qualify:
- Natural disasters: Earthquakes, floods, hurricanes, or wildfires directly affecting the destination or the Guest's location of departure, as evidenced by official government or emergency management declarations
- Government actions: Mandatory evacuations, government-imposed travel bans, or lockdown orders that legally prohibit travel to the property's location
- Infrastructure failures: Extended utility outages (power, water) affecting the property itself, confirmed by the Host or utility provider
- Medical emergencies: Serious, documented medical situations affecting the Guest or an immediate family member, requiring hospitalisation or preventing travel on medical advice
Not Covered as Force Majeure:
- Routine flight cancellations or rescheduling (travel insurance is available for this purpose)
- Traffic delays, missed connections, or general travel disruptions
- Change of plans, personal preference, or scheduling conflicts
- Weather conditions that do not rise to the level of a declared emergency
5.2 Emergency Cancellation Process
- Contact MRHK.CO customer support via support@mrhk.co
- Provide official documentation of the emergency event
- Platform reviews and responds within 24 hours
- Approved emergency cancellations: full refund of captured payment (if applicable) processed within 5 business days
Refund Structure for Approved Force Majeure:
- Guest refund: 100% of remaining nights returned to original payment method
- Platform service fees: Refunded to Guest for natural disasters and government-mandated actions; non-refundable for medical emergencies and infrastructure failures
- Host impact: Corresponding portion of payout reversed; Host not penalised for platform-approved force majeure cancellations
- Documentation required: Official government notices, weather service declarations, or hospital documentation as applicable
5.3 Documentation Requirements
- Natural disasters: Official weather service or emergency management agency declaration
- Government actions: Official government notice, advisory, or legal order
- Medical emergencies: Doctor's letter or hospital admission documentation
- Infrastructure failures: Utility provider notice or Host-provided confirmation
6. Refund Processing and Timelines
6.1 Processing Timeframes
| Cancellation Type | Review Time | Processing | Total Timeline |
|---|---|---|---|
| Pre-arrival (Guest-initiated) | Immediate | Immediate (no refund needed) | Immediate |
| Pre-arrival (auto-cancellation) | Automatic | Immediate (no refund needed) | Immediate |
| Pre-arrival (Host-initiated) | 24 hours | Immediate (no refund needed; rebooking assistance offered) | 24–48 hours |
| Post-payout code dispute | 3–5 business days | 5–10 business days | 8–15 business days |
| Force majeure | 24 hours | 3–5 business days (if payment was captured) | 4–6 business days |
6.2 Refund Methods
- Original payment method: Primary refund method in all cases where available
- MRHK.CO credit: Optional instant credit for future bookings (Guest's choice)
- Bank transfer: For cases where the original method is no longer available
6.3 How Refunds Are Calculated
Standard Dispute Refunds:
- Guest receives refund to original payment method for approved nights
- Host's payout is reduced by the refund amount
- Platform service fees are non-refundable
- Net Host payout = Total booking amount − Refund amount − Platform fee
Force Majeure Refunds:
- Guest receives full refund including platform service fee (for qualifying events)
- Host's payout adjusted for the booking amount; platform absorbs service fee refund
- Qualifying events: natural disasters, government-mandated restrictions
7. Dispute Resolution Process
For issues requiring platform mediation, MRHK.CO follows the dispute resolution process set out in the Service Agreement. This section provides a summary.
7.1 Dispute Initiation
- Access the dispute system through your account dashboard under your booking details
- Select the appropriate dispute category and provide a detailed description
- Upload supporting evidence within 72 hours of opening the dispute
- The platform generates a unique dispute ID for tracking
7.2 Mediation Timeline
- Host response required: 2 hours (urgent safety matters); 24 hours (standard disputes)
- Guest counter-response: 48 hours to accept or reject a proposed resolution
- Platform review: 3–5 business days for final determination
- Maximum resolution time: 10 business days from dispute initiation
7.3 Appeal Process
Either party may appeal the platform's dispute determination by contacting appeals@mrhk.co within 30 days of the final decision. Appeals require new evidence or a demonstration of procedural error. If the appeal does not resolve the matter, either party may escalate to binding arbitration under the Service Agreement.
8. Platform Liability and Limitations
8.1 Important Disclaimers
MRHK.CO does not provide insurance coverage and has defined limits on its liability:
- No Insurance Coverage: MRHK.CO does not provide any form of insurance for property damage, personal injury, theft, or other losses
- No Property Damage Coverage: The platform does not cover property damage caused by Guests beyond the booking payment already held
- Guest Damage Responsibility: Guests remain personally liable for any property damage they cause during their stay
- Host Protection Limitation: Hosts must pursue damage claims exceeding the booking amount through their own insurance or legal channels
- Platform Role: MRHK.CO serves as a booking marketplace and payment facilitator only
8.2 Maximum Platform Compensation
- Liability limit: Platform liability for any single incident is limited to $5,000, as set out in the Service Agreement. In most cases, liability is further limited to the platform service fee paid for the booking in question.
- No property damage coverage: Platform does not cover property damage, theft, or destruction beyond booking funds held
- No personal injury coverage: Platform does not cover medical expenses or personal injury claims
- Excluded damages: No liability for indirect damages, lost profits, emotional distress, or consequential damages
8.3 Insurance Recommendations
Strongly Recommended for Hosts:
- Short-term rental insurance or commercial property insurance
- Liability insurance covering guest injuries on the property
- Property damage insurance covering guest-caused damage
Strongly Recommended for Guests:
- Travel insurance covering trip cancellations, interruptions, and medical emergencies
- Personal liability insurance for accidental property damage
- Personal property insurance for belongings during travel
9. Contact Information
10. Chargebacks vs. Platform Disputes
Critical Difference: Chargebacks Are Not Cancellations
The platform dispute process is the required and exclusive mechanism for resolving booking-related financial claims. Initiating a chargeback with your card issuer as a substitute for, or in addition to, the platform dispute process is a breach of the Service Agreement and may result in account suspension.
Platform Dispute Process
- Governed by this policy and the Service Agreement
- Mediated by MRHK.CO with full context
- Defined timelines and refund outcomes
- Preserves the Host-Guest relationship and platform standing
Credit Card Chargebacks
- Bypass platform policies entirely
- Decided by card issuers without context
- Can occur up to 540 days after the transaction
- Constitute a breach of the Service Agreement
- May result in account termination
Effective Date: March 2, 2026
This Cancellation Policy is incorporated into and forms part of the MRHK.CO Service Agreement. By using the platform, you acknowledge that you have read, understood, and agree to be bound by this policy.
MRHK.CO reserves the right to modify this policy with 30 days' notice to registered users. Continued use of the platform after the effective date of modifications constitutes acceptance of the updated policy.