Who pays for a JV refund?

4 replies
Someone asks you to promote their product to your list for a 100% commission,
that goes to your paypal account (a small 7$ item). You don't know the person very well.
On the sales page there is a money back guarantee. Your subscribers start refunding the
product. Who pays for the refund?

(Logically it would be you, since you got the profit, but... IS there a but? )
#pays #refund
  • Profile picture of the author GarrieWilson
    The person paid BUT I have refuded them at a loss when the affiliate wouldnt.
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  • Profile picture of the author Kim Standerline
    I can't see that there is a but, if you received all of the payment, you should pay the refund

    Personally I think that's where the $7 script falls down because as Garrie probably found, the original vendor usually ends up paying because the affiliate refused. (nasty)

    Originally Posted by ildarius View Post

    Someone asks you to promote their product to your list for a 100% commission,
    that goes to your paypal account (a small 7$ item). You don't know the person very well.
    On the sales page there is a money back guarantee. Your subscribers start refunding the
    product. Who pays for the refund?

    (Logically it would be you, since you got the profit, but... IS there a but? )
    {{ DiscussionBoard.errors[460542].message }}
    • Profile picture of the author Paul Myers
      ildarius,

      Depends on the terms of the original deal. If it's not specified, it has to be the person who was directly paid.

      I don't say that based on the ethics of the situation, my personal preferences, or anything but the hard legal fact that it's not a refund, as far as PayPal is concerned, unless it goes through their system as such.

      Even if they want it to be.

      Why? First, there's the problem of chargebacks. If the buyer gets a refund from the merchant, and then claims the card was used fraudulently or whatever, it's going to hit the person actually paid.

      Then there's the simple matter of con artists getting double their money back by bullying people. Or lying to PayPal about one of the refund transactions.

      As a purely practical matter, anything else is going to leave a lot of room for abuse. The rest of the issues are interesting, but pretty much irrelevant in light of these considerations.


      Paul
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      • Profile picture of the author ildarius
        Then there's the simple matter of con artists getting double their money back by bullying people. Or lying to PayPal about one of the refund transactions.
        That was the "BUT"

        Guess you just have to be careful when choosing JV partners
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