What is a Chargeback?
Chargebacks are essentially refunds. It’s the term used to describe the reversal of funds when a consumer complains to their banking establishment over a specific charge / transaction on his or her credit or debit card.
The main idea behind chargebacks is to protect the cardholder at all costs from fraudsters and any other kind of unauthorized payments or theft.
It goes a little like this:
The consumer files a complaint with their bank over a specific charge, the issuing bank then investigates the validity of the claim; if the bank feels the complaint is valid and legit, the financial institution will then take the money directly from the merchant’s account and give it back to the consumer.
So, what’s the main difference between a chargeback and a refund?
The main difference is that the merchant has absolutely no say in the refund process that occurs during a chargeback.
So, how the heck can we prevent Chargebacks from happening?
- Don’t Mislead
- Detail the Product Well
- Go for Quality over Quantity
The Principles of Chargeback Prevention
As of July 1, 2016, Visa’s new Chargeback Monitoring Program’s regulations have been a cause for concern for both merchants and affiliate marketers alike.
In a nutshell, Visa is cracking down on chargeback ratios … and there’s a high probability adult marketers will not escape unscathed. This may change the way you promote adult products to the European market on some verticals.
Introducing Visa’s Chargeback Monitoring Program
- What does Visa’s new Monitoring Program mean for merchants?
The previously authorized chargeback rate of 2% of sales (or 200 chargebacks per month) has been cut in half.
Since July 1, 2016, the new chargeback rate has been set to 1% of sales (or 100 chargebacks per month).
The new policies and stricter regulations imposed by Visa will have a ripple-like effect on marketing campaigns and affiliates all around in ways many might not initially realize
Visa’s New Chargeback Policies & The Butterfly Effect in the Affiliate Industry
A Chargeback is a transaction reversal acting as consumer protection against fraudulent activities from either the individual or the merchant.
A Chargeback indicates an invalid sale and forfeits the affiliate’s commission.
What are chargebacks and what are some ways to prevent them from happening?