Important: MRHK.CO uses a unique payout code system that protects both guests and hosts. Payment is only processed after guest arrival and satisfaction with the property.
1. Overview of MRHK.CO's Payout Code System
MRHK.CO operates on a guest-protection payment model where your payment method is not charged until after you arrive at the property and provide a payout code to the host. This creates two distinct phases for cancellations:
- Pre-Arrival Cancellations: Before you've arrived and provided the payout code
- Post-Payout Code Cancellations: After you've arrived, inspected the property, and released payment
2. How the Payout Code System Works
2.1 Booking Process
- Guest makes a reservation and provides payment method details
- No payment is charged - only booking confirmation is issued
- Guest arrives at property and inspects accommodations
- If satisfied, guest provides secret payout code to host
- Host enters payout code to trigger payment processing
- Payment is charged to guest's method and processed to host
2.2 Payment Protection
This system ensures that:
- Guests only pay for properties they've personally inspected and accepted
- Hosts receive payment confirmation before the guest can dispute charges
- Both parties are protected against fraudulent listings or false claims
3. Pre-Arrival Cancellations
Since no payment has been processed, pre-arrival cancellations are straightforward and cost-free for guests.
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
No Payment, No Refund Needed:
Since your payment method has not been charged at booking, there are no refunds to process for pre-arrival cancellations. You simply cancel your reservation without any financial impact.
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 check-in time | No charges, no refunds needed |
| Booking remains active | Until guest arrives and provides payout code | No charges until payout code given |
3.2 Automatic System Cancellation
Important: Automatic Cancellation Policy
If you do not arrive at the property and take no action to cancel your booking, the system will automatically cancel your reservation 24 hours after the scheduled check-in time. This protects both you and the host from indefinite booking holds.
Auto-Cancellation Process:
- Check-in time passes without guest arrival or payout code
- 24-hour grace period begins for late arrivals
- System sends reminder notifications to guest at 12 and 2 hours before auto-cancellation
- Automatic cancellation occurs 24 hours after original check-in time
- Both parties notified of automatic cancellation
- Property becomes available for new bookings
Benefits of No Pre-Payment System:
- Zero financial risk: Cancel anytime without charges or refund delays
- Booking flexibility: Make multiple reservations while deciding
- No credit card holds: Your available credit remains unaffected
- Instant cancellation: No waiting for refund processing
- Auto-protection: System prevents forgotten bookings from lingering
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 automatic rebooking assistance (no refunds needed since no payment charged)
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
4. Post-Payout Code Cancellations
Once the payout code has been provided and payment processed, cancellations require justification and platform mediation.
4.1 Guest-Initiated Post-Payout Code Cancellations
Valid Reasons for Post-Payment Cancellation:
- Safety hazards: Immediate threats to guest safety discovered after arrival
- Severe misrepresentation: Property significantly different from listing
- Uninhabitable conditions: No heat, water, electricity, or severe cleanliness issues
- Host misconduct: Harassment, unauthorized entry, or privacy violations
- Force majeure: Natural disasters or government-mandated evacuations
Cancellation Process:
- Immediate Documentation: Take photos/videos of issues before leaving property
- Contact Host First: Give host 2 hours to address urgent issues, 24 hours for non-urgent
- Escalate to Platform: If unresolved, initiate dispute through account dashboard
- Provide Evidence: Upload photos, videos, and detailed description
- Customer Service Review: Platform investigates within 3-5 business days
- Resolution: Approved refunds processed within 5-10 business days
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 must show current date/time when possible
- Communication Records: Messages between guest and host
- Third-Party Documentation: Police reports, medical records if applicable
Refund Calculations for Approved Cancellations:
| Cancellation Reason | Refund Amount | Platform Fee | Additional Compensation |
|---|---|---|---|
| Safety hazards | 100% of remaining nights | Non-refundable | Alternative accommodation assistance |
| Severe misrepresentation | 100% of remaining nights | Non-refundable | None |
| Uninhabitable conditions | 100% of remaining nights | Non-refundable | Reasonable expenses covered |
| Host misconduct | 100% of remaining nights + current night | Non-refundable | None |
| Minor issues | Partial refund (case-by-case) | Non-refundable | Host remediation required |
Refunds are processed by reversing 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 Post-Payout Code Cancellations
Hosts may request guest departure in extreme circumstances, but must provide substantial justification.
Valid Reasons for Guest Removal:
- Property damage: Intentional damage to property or furnishings
- Occupancy violations: Exceeding maximum guest capacity
- Noise/disturbance violations: Repeated violations after warnings
- Illegal activities: Drug use, criminal activity on property
- Safety violations: Behavior endangering other guests or property
Host Process for Guest Removal:
- Document Violations: Photo/video evidence and written warnings
- Contact Platform: Call customer service emergency line
- Provide Evidence: Submit documentation of violations
- Platform Approval: Customer service must approve removal
- Refund Processing: Platform determines appropriate refund amount
Refund Schedule for Host-Initiated Removal:
| Violation Type | Guest Refund | Host Payout | Platform Fee |
|---|---|---|---|
| Property damage | 0% | Full booking amount | Retained |
| Occupancy violations | 50% of remaining nights | 50% of remaining nights | Retained |
| Noise violations | 25% of remaining nights | 75% of remaining nights | Retained |
| Illegal activities | 0% | Full booking amount | Retained |
Guest refunds are processed through payment reversal, with hosts receiving the remaining balance after refund deductions. Platform service fees are retained in all host-initiated removal cases.
Important: Property Damage Not Covered
MRHK.CO does not provide coverage for property damage caused by guests. Hosts must pursue damage claims through:
- Their own insurance policies
- Direct legal action against the guest
- Small claims court proceedings
- Third-party damage protection services
The platform's role is limited to payment processing and booking facilitation only.
5. Emergency Cancellations and Force Majeure
5.1 Covered Events
- Natural disasters: Earthquakes, floods, hurricanes, wildfires
- Government actions: Travel bans, mandatory evacuations, lockdowns
- Infrastructure failures: Extended power outages, water system failures
- Medical emergencies: Documented medical situations preventing travel
- Transportation disruptions: Flight cancellations, major transit strikes
5.2 Emergency Cancellation Process
- Contact MRHK.CO customer support via support@mrhk.co
- Provide documentation of emergency situation
- Platform reviews and approves within 24 hours
- Full refunds processed for approved emergency cancellations (if payment was already processed)
- Alternative accommodation assistance provided when possible
Refund Structure for Force Majeure:
- Guest refund: 100% of remaining nights returned to original payment method
- Platform service fees: Refunded to guest only for natural disasters, government actions, or infrastructure failures
- Host impact: Payment reversal deducted from host's payout balance
- Documentation: Official evidence required (weather alerts, government notices, etc.)
5.3 Documentation Requirements
- Natural disasters: Official weather service alerts or news reports
- Government actions: Official government notices or advisory publications
- Medical emergencies: Doctor's note or hospital documentation
- Transportation: Airline cancellation notices or official transit alerts
6. Refund Processing and Timelines
6.1 Processing Timeframes
| Cancellation Type | Review Time | Processing | Total Timeline |
|---|---|---|---|
| Pre-arrival (guest-initiated) | Immediate | Immediate (no refunds needed) | Immediate |
| Pre-arrival (auto-cancellation) | Automatic | Immediate (no refunds needed) | Immediate |
| Pre-arrival (host-initiated) | 24 hours | Immediate (rebooking assistance) | 24-48 hours |
| Post-payout code | 3-5 business days | 5-10 business days | 8-15 business days |
| Emergency/Force majeure | 24 hours | 3-5 business days (if payment processed) | 4-6 business days |
6.2 Refund Methods
- Original payment method: Primary refund method when possible
- MRHK.CO credit: Instant credit for future bookings (optional)
- Bank transfer: For cases where original method is unavailable
- Check payment: Last resort for complex refund situations
6.3 How Refunds Are Processed
MRHK.CO processes refunds through payment reversals:
Standard Refunds:
- Guest receives refund to original payment method
- Host's payout is adjusted to reflect the refund amount
- Platform service fees remain non-refundable
- Net amount paid to host = Total booking - Refund - Platform fee
Force Majeure Refunds:
- Guest receives full refund including platform service fees
- Host's payout adjusted for booking amount only
- Platform absorbs service fee refund for qualifying events
- Qualifying events: Natural disasters, government restrictions, infrastructure failures
7. Dispute Resolution Process
For cancellations requiring platform mediation, MRHK.CO follows the dispute resolution process outlined in our Service Agreement:
7.1 Dispute Initiation
- Access dispute system through account dashboard:
/account/bookings/<booking_id>/dispute - Select appropriate dispute category and provide detailed description
- Upload supporting evidence within 72 hours of dispute initiation
- System generates unique dispute ID for tracking
7.2 Mediation Timeline
- Host response required: 2 hours (urgent), 24 hours (standard)
- Guest counter-response: 48 hours to accept/reject resolution
- Platform review: 3-5 business days for final decision
- Maximum resolution time: 10 business days total
7.3 Appeal Process
Either party may appeal the platform's decision by contacting appeals@mrhk.co within 30 days of the final decision. Appeals require new evidence or demonstration of procedural errors.
8. Platform Liability and Limitations
8.1 Important Disclaimers
MRHK.CO does not provide insurance coverage and has significant limitations on liability:
- No Insurance Coverage: MRHK.CO does not provide any form of insurance coverage for property damage, personal injury, theft, or other losses
- No Property Damage Coverage: The platform does not cover property damage caused by guests and cannot compensate hosts for such damages
- Guest Damage Responsibility: Guests remain personally liable for any property damage they cause during their stay
- Host Protection Limitation: Hosts must pursue property damage claims through their own insurance or legal channels
- Third-Party Insurance Required: Hosts and guests are strongly advised to obtain their own insurance coverage for their properties and travel
- Platform Role: MRHK.CO serves only as a booking platform and marketplace, not as an insurer or guarantor
8.2 Maximum Platform Compensation
- Limited to booking fees: Platform liability is limited to the amount of service fees paid to MRHK.CO
- No property damage coverage: Platform does not cover any property damage, theft, or destruction
- No personal injury coverage: Platform does not cover medical expenses or personal injury claims
- Excluded damages: No coverage for indirect damages, lost profits, emotional distress, or consequential damages
- Maximum liability cap: $500 per incident for platform service issues only
8.3 Insurance Recommendations
Strongly Recommended for Hosts:
- Short-term rental insurance or commercial property insurance
- Liability insurance for guest injuries
- Property damage insurance covering guest-caused damage
Strongly Recommended for Guests:
- Travel insurance covering trip cancellations and medical emergencies
- Personal liability insurance for accidental property damage
- Personal property insurance for belongings during travel
9. Contact Information
10. Chargebacks vs. Cancellations
Critical Difference: Chargebacks Are Not Cancellations
Even after successful completion of a stay and payout code provision, guests can still dispute charges with their credit card company. This creates ongoing financial risk for hosts:
Platform Cancellations
- Governed by this cancellation policy
- Mediated by MRHK.CO
- Reasonable refund protections
- Clear timelines and processes
Credit Card Chargebacks
- Bypass platform policies entirely
- Decided by credit card companies
- Can occur up to 540 days later
- Host liable for full amount + fees
Effective Date: July 13, 2025
This Cancellation Policy is part of and incorporated into the MRHK.CO Service Agreement. By using our platform, you acknowledge that you have read, understood, and agree to be bound by this Cancellation Policy.
MRHK.CO reserves the right to modify this policy with 30 days' notice to registered users. Continued use of the platform after modifications constitutes acceptance of the updated policy.