I mean I am entirely unfamiliar with the concept. We rarely use credit cards where I am from and most of our payments are done via debit cards (or cash) and our regular payments are usually done via a repeat pay order with a specific code.

From what I could gather this is related to subscribing to a service with a credit (or possibly a debit) card and then having a dispute over whether may the service provider continue to charge you or not.

Is my assessment correct?

If so it doesn't surprise me. From what I know. the american payment environment is quite ridiculous to pretty much all europeans (and I'd suspect elsewhere too) I mean giving your card to a waitress who takes it out of your sight, pqper checks, actually signing something when you pay with a card etc. It's just wild.