Chargeback

What Is a Chargeback?

A chargeback in affiliate marketing happens when a sale that was originally credited to an affiliate is later reversed, canceled, refunded, or disputed.

Because affiliate commissions are usually based on completed sales, a chargeback may also cause the affiliate’s commission for that transaction to be canceled or deducted from a future payment.

In simple terms:

A customer makes a purchase → the affiliate earns a commission → the purchase is later reversed → the commission may also be reversed.

Chargebacks help businesses avoid paying commissions on sales that did not ultimately generate revenue.

When a customer makes a purchase through an affiliate link, the affiliate is typically credited with the sale and a commission is recorded.

However, that commission may remain pending for a period of time before it is approved and paid.

During that period, the customer might:

• Return the product
• Cancel the order
• Request a refund
• Dispute the payment with their bank or credit card provider
• Have the transaction flagged as fraudulent
• Fail to complete a recurring payment

If the original transaction is reversed, the business may remove the associated affiliate commission.