Chargebacks and Freelancer protection on Latium

What is a chargeback?
A chargeback is a form of buyer protection issued by banks. Chargebacks apply to credit card transactions but do not apply to crypto payments. A chargeback allows credit cardholders to file complaints regarding received services or fraudulent transactions made without the buyer's knowledge. When a chargeback occurs, the buyer's credit card company notifies Latium and may request:
- Transaction information
- Proof of delivery
- Proof of refund
Important: Latium has a specific timeframe to respond to the credit card company with the requested information.

Reasons for chargebacks

-Fraud
This happens when the cardholder reports unauthorized or fraudulent transactions, where their credit card number was used without permission. It is important to note that when using Latium, buyers are using a prepaid service, and this fact may sometimes go unnoticed.

-Service
The buyer either did not receive the service or the service received was not as described.

What does a chargeback look like?
1) A buyer disputes a charge with their bank.
2) The bank sends a chargeback notification to Latium, which holds the disputed amount. Consequently, the order is canceled, and the funds are deducted from the freelancer's (upcoming or cleared) balance.
3) Both the buyer and the freelancer receive email notifications informing them of the specific chargeback.
4) After the chargeback is reviewed, one of the following scenarios may occur:
A: The freelancer is held responsible for service-related chargebacks, and the funds are deducted.
B: Latium may, at its sole discretion, protect the freelancer from fraudulent chargebacks, and the funds may be added back to the account, but this is not guaranteed. It is important to note that this does not affect the freelancer's order completion rate.
Note: Freelancer protection funds (funds credited to the freelancer) can still be removed based on further investigation.

Freelancer responsibility
Freelancers are responsible for any service-related chargebacks. In such cases, the funds will be deducted from their account. However, if the service was provided in full and to the buyer's satisfaction, Latium's Trust and Safety team will review the issue and help resolve it in the freelancer's favor.
Please note that a resolution in the freelancer's favor cannot be guaranteed. If the chargeback is resolved in the freelancer's favor, the funds will be returned to their account, and after 45 days, they will be able to withdraw them. It is important to emphasize that this will not affect the freelancer's order completion rate.