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Commission payments and avoiding paypal chargebacks

Discussion in 'Affiliate Programs' started by gav000, Mar 8, 2016.

  1. gav000

    gav000 Newbie

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    I read something about a guy on here who gave his friends / contacts commission for every new customer they got him.

    I am wondering how can you do this online and prevent your contacts from tricking you.
    Example

    John finds me 3 new customers
    3 of them pay me through paypal
    I give John 10%
    The next day the 3 do a paypal chargeback

    I am new to this stuf. Any idea how to prevent something like that??

    Thanks in advance
     
  2. Omirag

    Omirag Jr. VIP Jr. VIP

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    put john on a payment plan that puts him outside the charge back period of paypal until he shows he brings in good traffic, like any affiliate program.
     
  3. gav000

    gav000 Newbie

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    ok I was thinking bout that.... but is there a set chargeback period? For example I delay payment for 1 week?
     
  4. SocialPusher

    SocialPusher Jr. VIP Jr. VIP Premium Member

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    Most companies use a 15-30-45 day period until the clients are verified. You usually won't be able to prevent all the scam attempts but you can always ban or remove the affiliate that has a big chargeback count. Also, you can work with an affiliate network that has verified affiliates, for a high end product
     
  5. jimbobo2779

    jimbobo2779 Jr. VIP Jr. VIP

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    Forced refund period is like 90 days, nobody will work for 90 days without pay. The best you can do is delay payments by 7-30 days and just deduct any refunds/chargebacks from future commissions payments.

    Log IP addresses of customers as well so if you get a chargeback you can give them the IP logs for that customer and any other info about them. If they are using IPs that the customer has used through Paypal in the past you will win the dispute / claim.
     
  6. gav000

    gav000 Newbie

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    Thanks jimbobo that is some solid info......
     
  7. World Leads

    World Leads Junior Member

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    I beleive you should extend your payment period as PayPal allows chargebacks within 45 days. Also, there are services ( which are acting as a middleman) which is cool, if you want to sell your stuff. Correct me if I'm worng, but as far as I know 2checkout is good to prevent a few types of chargebacks (it will also help you to win the deal).