Timeshare purchases in most US states are subject to rescission rights that give buyers a defined period, typically between three and fifteen days depending on the state, during which they can cancel the purchase and receive a full refund. Timeshare businesses are legally required to honor these rescission rights, and the refund obligation is not negotiable regardless of what the sales contract says. When buyers exercise their rescission rights through a bank dispute rather than through the timeshare company's cancellation process, the resulting chargeback counts against the merchant's processing ratio even though the refund was legally required.
Cryptocurrency payment processing for timeshare MATCH list merchants does not eliminate the rescission right obligation, because that obligation is established by state law rather than by the payment processing system. What it does change is the mechanism through which the refund is processed. A timeshare buyer who pays by cryptocurrency and then exercises their rescission right must request the refund from the timeshare company directly, because there is no bank dispute mechanism through which to reverse a confirmed cryptocurrency payment. The timeshare company issues the cryptocurrency refund under its own rescission process rather than having the charge reversed unilaterally by an issuing bank. The refund obligation is the same. The financial exposure from the refund being processed as a bank-mediated chargeback, with associated fees and monitoring program impact, is eliminated.
