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Need clarification about chargebacks and refunds

by OptimistTrader
6 replies
Hello everybody,
This is my first post, so I will try to not screw it up.
I have developed my first digital product, so I'm checking the different ways of selling it online. For you information, I'm new at internet commerce.
I'm interested to have an affiliate network, so I have read about the ClickBank platform, everything of it looks well, except the fines in case of chargebacks.
I understood the chargebacks happens when a customer complains at the credit card company, but in case the customer asks for a refund to ClickBank or the Vendor (inside of the 60 guarantee days, is it considered as a chargeback as well? Would I have a fine for doing a refund?
Is the commission returned to the Vendor when a refund take place?
Thank you
An Optimist Trader
#chargebacks #clarification #refunds
  • Profile picture of the author kindsvater
    Originally Posted by OptimistTrader View Post

    in case the customer asks for a refund to ClickBank or the Vendor (inside of the 60 guarantee days, is it considered as a chargeback as well?
    No. Just a refund.
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  • Profile picture of the author Jason Johns
    It's just a refund.

    A chargeback happens when you pay for something by credit card and then dispute it directly to the credit card company. The credit card company takes the money back from Clickbank (and I imagine charges them for it) and Clickbank slaps you with a fine.

    Chargebacks tend to be quite rare because of Clickbanks 60 day no quibbles refund policy.

    If you've produced a quality product then you shouldn't have anything to worry about. There will always be refunds and the like, it's the nature of doing business online. By providing value you can reduce that but you can never eliminate it.

    All the best

    Jason
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  • Profile picture of the author stephenwaldo
    At this point I would probably say stay away from Clickbank. Rough times ahead for both vendors and affiliates with their new policies coming into effect. Unless you're absolutely positive that you can start out on the right foot with very, very minimal refunds, I would check out a different payment processor.
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  • Profile picture of the author OptimistTrader
    Thank you for your answers.

    @Stephen, I understood the refunds do not generate a fine, why should I be worry about them?
    Indeed, I expect to have a high number of refunds.
    Which is the issue with CB?
    Do you suggest any other alternative?

    I am in the moment to select the best platform, so any comment will be highly appreciated.

    Thanks
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  • Profile picture of the author WillR
    I believe with the new changes coming into affect, some refunds will attract a fee depending on the standing of your account.
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    • Profile picture of the author OneLifeAway
      Originally Posted by WillR View Post

      I believe with the new changes coming into affect, some refunds will attract a fee depending on the standing of your account.
      This is very true. Clickbank is changing the way they are doing things and will charge a fee and percentage charge for some refunds as well as charge-backs. I am not too sure how this is going to affect people with some of the products they are selling... I can't imagine this is a good play.
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