As a business, you're likely to receive chargebacks (when a customer disputes a charge with their bank) from time to time. ZenVideo OTT provides a chargeback defense for all charges that were processed through the OTT checkout page.
Below are the basics of the chargeback process, causes, and steps that ZenVideo OTT takes to prevent them, as well as an overview of how we help your business by contesting them each.
In this article
- What are chargebacks?
- Is my site protected from chargebacks?
- How does ZenVideo OTT handle chargebacks on my behalf?
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Once the payment is reversed, the funds are withdrawn from the business.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.
However, ZenVideo OTT has a dedicated team that will contest every single disputed payment using Stripe, the payment gateway that we utilize for every transaction made through the web checkout form. No action or information is required from you.
⚠️Note: Our team is unable to contest any disputes that are initiated where the payment source is outside of ZenVideo OTT, such as the Roku, Apple, and Google Play Stores.
How does ZenVideo OTT handle chargebacks on my behalf?
Our team reviews each dispute and compiles information that the bank requests such as our terms and conditions, refund policies, user access information, and more.
Once we compile that information, we submit it for review by the card provider.
This process is manual for both our chargeback team and the bank, and highly subjective, meaning that it is another person that decides the resolution decision. However, we try to provide as much information that may assist the bank with their decision.
While we respond to chargebacks within 1-3 days of receiving them, resolution can take up to 60 days, depending on the bank.
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