CC Chargebacks question

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allco

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Nov 5, 2008
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I asked this question to an affiliate company I'm thinking of signing up with as a seller/advertiser, no response just yet (and I don't see it listed in their FAQ). Does anyone here know the answer or has had experience with this.

In my country, the CC companies give their CC holders up to 6 months to dispute and charge back a transaction on their account.

If the Advertiser of an affiliate program pays out the commission on a sale once a month to the affiliate marketer, what happens in the case that the end user (CC Holder) charges back the transaction past that one month period?

(maybe the chargeback ratio is low - but being a NCP transaction you'd think the doors are wide open for it to happen)

Thanks
 


You usually pay for the lead/sale, it's the action your paying for. You as an advertiser would have to see why people are returning items/charging back.

I hate it when advertisers will un-credit leads that are charged bacde/returned.It's not my fault you aren't able to satisfy your customers.
 
Check the terms you agreed to in the affiliate program. For a lot of programs you already have to wait 60 to 90 days to see your money come in, but for the 30 days mentioned by the OP, you may want to withdraw your earnings quickly just in case they try to take it back from you. Tell the original advertising company to use moneybookers or some other payment processor that is difficult to chargeback.
 
with adult affiliate programs... I've always had a negative entered on my accounts for chargebacks... sometimes when the chargeback comes the next month, and I had already been paid for that sale the previous month, the negative amount would be deducted from my next sale...

it's kinda funny, but if you have a high CB rate, you as an affiliate can actually end up owing the affiliate program money...
 
Thanks for the responses

Just for info sake, just got the reply from the Affiliate marketer company, and here's their response:

"A charge back that occurs within the month of sale due to fraudulent activity can be invalidated only if it is due to fraudulent activity of the publisher. In the event of a return the publisher must still be paid if the bad sale was not the fault of the publisher."

Also spoke with mastercard... they would ask for all the proof you have of the digital sale (IP log etc.), and do a quick arbitration with the card holder, then determine if they believe the card holder or not.....

I guess that's all ya can do - keep lots of records and hope for the best...
 
if you are really concerned about this you may want to have a long discussion with your merchant account before you launch your affiliate program. if CB are going to be an issue for you I would be more worried about keeping my merchant account altogether.
 
Volume10 said:
if you are really concerned about this you may want to have a long discussion with your merchant account before you launch your affiliate program. if CB are going to be an issue for you I would be more worried about keeping my merchant account altogether.
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Thanks! Good point, I'll look into it.

My gut tells me the banks would want a minimum steady balance maintained to cover any incidents of this, knowing it's going to be used strictly for online transactions of digital goods/services.....

Thanks for the input!
 
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