Quote:
Originally posted by gregtx@Sep 25 2003, 02:20 PM
Clay some numbers I would like to see are.... where the majority of the chargebacks come from.. are they from stolen cc numbers/bad affiliates or are they from legit customers who could not figure out how to cancel?
by eliminating bad resellers out of our affiliate program... it seems not only has our weekly fraud review dropped in time.. but also seems that our retention is on the rise and our cb ratio has dropped.. basically better to have 10 good transactions over paying out on 100 that 90 are bad....
right now our highest amount of CB's come from people sending us xsells...
maybe its just us.. but I would think that one would recognize that maybe its not the price point as much as it is the sneaky xsell??? 2 cents
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If you look at the overall fraud in Partnership Programs (PP) vs. PPS you will see that the incidence is typically much lower. PPS programs usually have a much higher cbk rate than PP. The payout structure for PPS is obviously more appealing to fraudulent affiliates as they get paid prior to the onslaught of chargebacks. I believe that the difference in chargeback ratios between PPS and PP are attributable to bad affiliates who run a variety of scams in order to generate sales.
Sure friendly fraud plays a significant role in chargeback ratios but I don't think there is much difference in PPS vs. PP in regards to FF.
I urge all programs to look at their affiliate base and cut those affiliates which are causing problems which result in an increase in chargeback and credit ratios. If you have affiliates sending straight to your tour and your average chargeback ratio is 1% then there is no reason why an affiliates indvidual ratio should be much higher than 1%. If you have affiliates running at 2-3% chargebacks there is a pretty good chance that they are frauding you.
In regards to xsales, remember with xsales you are getting sales from the sending companies affiliates. If that company doesn't do a good job at eliminating fraud in their program then there is a good chance that you will be on the receiving end of fraudulent transactions.
Clay
EPOCH