As a business, you're likely to receive chargebacks (when a customer disputes a charge with their bank) from time to time. Vimeo OTT provides a chargeback defense for all charges that were processed through the OTT checkout page.
Below are the basics of the chargeback process.
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What are chargebacks?
A chargeback, also known as a dispute, occurs when a cardholder makes a request to their bank to reverse a charge. While transaction reversals are intended to protect consumers from unauthorized transactions, chargebacks can be initiated for other reasons that we will go into below.
Two things can happen at this point. The bank will either advise the cardholder to first reach out to the merchant for a resolution, or the bank will reverse the charge. While we prefer that cardholders contact our support team first, many simply dispute the charge.
Once the payment is reversed, the funds are withdrawn from the business. Sometimes the bank may credit the cardholder immediately and withdraw the funds later if the dispute is dropped or won by the merchant.
If the bank rules in the cardholder’s favor, the cardholder will keep the funds and the merchant will lose not only the transacted amount but a chargeback fee that is typically associated with disputes.
There are many reasons why the cardholder may initiate the chargeback which include fraudulent/unrecognized transactions, credit not processed, and failure to cancel a subscription. Before the bank makes a decision, merchants have the opportunity to defend the charge.
Is my site protected from chargebacks?
Selling a product or service involves some risks such as chargebacks, and all card payments can be disputed by a cardholder.
Vimeo OTT does not actively challenge chargebacks. The user issuing a dispute will immediately lose access to the content. The result of the dispute depends solely on the bank investigation.
This process is manual, and highly subjective, meaning that it is another person that decides the resolution decision. Resolution can take up to 60 days, depending on the bank.