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  1. #1
    Member
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    Hi All,
    I've asked this on a more specific forum (CJ - UK) but no feedback so I'll try it here.

    Been lurking for a few weeks.
    New to affiliate marketing and would appreciate views on reversal rates.
    I have one merchant for whom I do ppc promotion, reasonable sales but for Jan 2004 had 35% reversals, Feb 2004 46% reversals.

    All the reversals were for 'Invalid Credit Card' and went through in the _following_ month.
    I have problems understanding how transactions get reversed 3 weeks later for 'Invalid Credit Card'.

    Isn't that a real-time issue?
    And isn't 46% a huge rate anyhow?

    Any thoughts anyone?

    Thanks for your time
    KM

  2. #2
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    All my merchant clients would panic if they had reversal rates above 1%.

    Mike & Charlie ...

    "Payment is one option that isn't negotiable. Merchants require it for purchases ...SO DO WE."

  3. #3
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    Depends on what you see as reversals. Are these figures you posted reversals of the amount of sales oder are 46% of your sales reversed ( no matter how big the amount is.
    The creditcard issue is only a realtime check if the number of figures is correct, and if there is a creditcard for that name issued. The procedure to verify possible ICCs is that the person which owns the CC gets a letter with a form where he must answer some questions, and then he sends it back. This can take several weeks. One of my merchant has an own staff for validating CCs, and they are very quick. It takes them 3-5 days to eleminate ICCs.

    carneol

  4. #4
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    As far as reversal rates, it depends on the merchant/product usually. Anything that involves size, meaning shoes, clothing, slipcovers, that sort of thing, you can expect some reversals. Especially if they advertise a 365 return day policy and free returns(zappos).
    As far as the long delay sometimes for invalid CC, not too sure about that. Some merchants have different systems, some go in and manually check stuff etc.

    I work in lounge pants

  5. #5
    Moderator MichaelColey's Avatar
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    Sounds WAY high to me. Somewhere in the 1-10% (depending on the category, return policies, etc.) should be about the highest you should legitimately see.

    Michael Coley
    Amazing-Bargains.com

  6. #6
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    Only thing I see reversals that high is in the cel phone business where reversals are terrible

    ...............
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  7. #7
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    Thanks for the input all.

    The merchant is in mail-order catalog shopping, wide range of household goods like clothing, electronics, furniture, etc.

    Returns policy is generous so I guess that would generate some reversals OK. However, the reason given in all cases this month is 'Invalid Credit Card'.

    Last month they were all 'Can't ship/Out of stock' and when I took it up with the AM the explanation was that they had a temp entering the data and he/she was entering them incorrectly.

    I'm not suggesting anything untoward is happening here, just trying to get a handle on what is normal and what I should expect.

    On balance you seem to be saying it's high but not incredible.

  8. #8
    Member
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    Hi KM,

    As a merchant we have a 30 day return policy so I always extend transactions to allow for that. I usually only do reversals once a month so if a cc is invalid it may take me 3 weeks to reverse it depending on the date the sale came through.
    At my company if a cc is invalid we will call, email or write the customer to try to get that sale through so that takes some time too. You should contact the affiliate manager of the program and ask what their policy is.

    Theresa
    SeaEagle.com
    Affiliate Manager


  9. #9
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    An acceptable reversal rate is whatever is accurate and honest.

  10. #10
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    Hi Theresa,
    Thanks for that - it helps to know how merchants work. I was labouring under the (apparently mistaken) impression that cc validation was a real-time issue these days.

    Hi Jimbo2002
    Thanks, but everybody else seems to have understood what I meant and wanted to know.

  11. #11
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    Reversals shouldn't happen because

    (a) stock recovery times should be built in to the process sometime - on some networks they use pendings - which can be deleted or validated

    (b) anti-fraud measures should be in place to check problems.

    Also Reversal rates would be a great indictor of how good an online program is. Didn't we used to have them?

    Stuff like the barclaycard stuff which was about a pixel being on the wrong page and them taking a month to sort it out is shocking.

    Tracking should work all the time - no excuses for it being broken, or affiliates being treated last in the food chain when it comes to site changes which affect deep links.
    They don't just decide to completely redo sites overnight - advance notice that they'll be changing deep links in the next month might save some of us hours of work, allow us to plan and act accordingly.


  12. #12
    Resident Genius and Staunch Capitalist Leader's Avatar
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    I agree with Michael Coley, although I'd put the top figure at about 8%.

    I disagree with Jimbo's proposition that just *any* amount of reversals that's honest and accurate is acceptable.

    If anything above a few percent of reversals is actually accurate, something's wrong! It could be bad inventory control, bad CC verification procedures, too liberal of return policies, or something else causing the high returns--but more than a few percentage points of reversals indicates a problem.

    ~Cheapskate merchants need not apply

  13. #13
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    quote:
    Been lurking for a few weeks.
    New to affiliate marketing and would appreciate views on reversal rates.
    I have one merchant for whom I do ppc promotion, reasonable sales but for Jan 2004 had 35% reversals, Feb 2004 46% reversals.



    A good portion of affiliates with CJ are novice. CJ is a haven for shady merchants who realize novice affiliates don't know what is acceptable, and will bend over in gratitude for a small ontime check each month.

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