Originally Posted by **********

Hi Matyko,

In a perfect world it would depend on the reason for the chargeback.

If the chargeback is pure fraud, the program owner can argue that the affiliate sent him garbage traffic. At the same time, the affiliate could argue that the traffic is good, but that the service was bad.

If the program owner offers high payouts and zero responsibility for chargebacks, this of course invites all kinds of fraud.

In my opinion, the best way to do this is to have the program owner absorb the cost of the chargeback, but notify the affiliate of the chargeback and warn him that if the chargeback rate exceeds your comfort zone, that you may choose to stop doing business with that affiliate.

You could also take a different approach. Try to pay closer attention to the sales you get and look for clues that a customer will chargeback. Was a woman name used? Is this is first visit to your site? Known Proxy IP? If you spot a potential chargeback, you can contact the customer and attempt to verify that he is indeed the card holder. If you can't, you may want to void the transaction and inform your affiliate that he won't be getting a commish' for this one.

Reading and understanding the data is paramount to helping you make good decisions and keeping the affiliates and others you depend on happy.