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  1. #1
    ABW Ambassador
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    So there's this merchant I signed up with when they were brand new (no stats)... I've had eight sales with them (about $475 in merchandise), no reversals.

    I did have a 0.00 sale that came through and when I queried them about it, they said they had a promotion of a free gift with every order -- but a bug allowed people to order the free gift without buying anything (they closed the promotion). Fair enough. That sale shows as reversed.

    I was startled today when I was looking at their detail page for something and saw that their charge-back percent is over 75%!

    I would never have signed up with them at that high a chargeback rate... but now it makes me go hmmmmmmm.... I'm willing to gamble on some merchants with 30 or 40% charge-back, but 75+? No way...

    Until now...

    FWIW.

  2. #2
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    Cedric,

    As charge-back is based on dollar amount ... It is possible that they had lots of small sales and a few slaes for $1000's placed with bad credit cards. That would give them a high charge-back %.

    How did you see that if they are new and have no stats??

    Dave

  3. #3
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    Which makes you wonder about the whole concept of the chargeback %...

    They had no stats when I signed up with them... they have stats now. [img]/infopop/emoticons/icon_wink.gif[/img]

  4. #4
    ABW Ambassador Packy's Avatar
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    Cedric, I just noticed one of my merchants also had a really high chargeback % which I wouldn't of used them if I saw it and I ALWAYS check that first. For some reason I missed it or the chargeback % wasnt' showing before. Is yours a sporting merchant?

  5. #5
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    January 17th, 2005
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    Cedric,

    CJ decided to use the dollar amount rather than the number of transactions for a simple reason... money matters, not transactions. If an advertiser let's all the little transactions go through but charges back all the big ticket items, then the only way to reflect your chances of making money (or not) is to show you the dollar amount charged back.

    Don't put all your faith in the chargeback number. It doesn't always mean a bad advertiser. If the advertiser is new or only has a small number of transactions, then the % can get high very quickly. 1 chargeback on 2 transactions can hurt an advertiser. Also, one big transaction that is charged back for a legitimate reason can also hurt the advertiser.

    The only part of the chargeback that I would like to change or enhance would be to show you the number of transactions involved in the calculations. I don't think we can do this, however, because it would give away the number of transactions from the advertiser.

    Regards,
    David.

  6. #6
    Member
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    Hi David,

    I am sorry if this is annoying but are you sure that all CJ merchants are P3P compliant?

    I know CJ is p3p compliant but how about the merchants?. I display merchants in frames and don't won't to lose sales because of p3p compliance issue

    [ 12-12-2001: Message edited by: cowcool ]

  7. #7
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    Packy: no, mine is not a sports merchant.

    David: thanks for the additional info... and I understand the dilemma between which info to display. It's a good thought to give consideration to join date ("is this a new merchant with a high chargeback? could be just that") when reviewing merchants... the whole thing has opened my eyes to some merchants I would not have considered before.

    Not that I'm throwing caution to the wind. [img]/infopop/emoticons/icon_wink.gif[/img]

    Another thought would be to have two chargeback percents -- percentage of #sales and percentage of dollars.

  8. #8
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    [duplicate post]

    [ 12-12-2001: Message edited by: Cedric ]

  9. #9
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    David;
    Thanks for clarifying how this charge back ratio works. I find that the credit card scammers ( mostly overseas guys) target the electronics and computer vendors the most since they are high $$$ items. I get many e-mails from these wanks hoping I'd jump on a private deal to sell a few grand in CPU's or clsoeout notebooks to them and ship the stuff to the Ukrain -Balkins or Indonesia. All fraud. Thanks CJ for at least devulging upfront merchant information ..BF and LS sure keep it all a secret. The KEY in your statement was not wanting to tip affiliates as to the "number" of merchant transactions. I'm taking on some Linkshare and BeFree merchants who have NEVER shown one sale in over 2 years of clickthroughs from targeted traffic. If those networks cared they'd see some merchants go without a single sale for weeks at a time.

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