What is a Chargeback?
A chargeback is a forced card payment reversal initiated by the cardholder through the payment network or issuing bank, bypassing the merchant. In nutra, subscriptions, and e-commerce, chargebacks cut effective payout, approval rate, and can trigger merchant account shutdowns for advertisers.
Main causes
- Unrecognized charges after rebill—users did not expect the subscription or trial amount.
- Poor product quality, COD delivery delays, order refusal.
- Fraudulent transactions (stolen cards)—not the affiliate's fault, but conversions go unpaid.
In affiliate programs
Advertisers and networks claw back chargebacks from affiliate payouts, extend holds, or cut caps. A postback may arrive approved, then flip to rejected/chargeback—monitor delayed postbacks in the tracker.
Risk reduction
Clear billing pages, transparent trial terms, quality call centers in nutra. Media buyers cannot control the product but can pick advertisers with low chargeback rates and avoid unapproved incent on rebill offers.