Chargeback

A chargeback occurs when a customer disputes a transaction with their bank or card issuer, and the payment is forcibly reversed. Unlike a refund, which the operator initiates voluntarily, a chargeback is imposed externally and often carries additional processing fees. In the context of affiliate programs, chargebacks create a cascading problem -- the operator loses the revenue, but the affiliate commission linked to that transaction may already have been paid out.

High chargeback rates are a strong signal of poor traffic quality or outright affiliate fraud. When affiliates drive customers who later dispute their payments, it suggests the traffic was either low-intent, incentivized under false pretenses, or generated through stolen payment credentials. This is why many operators tie chargeback monitoring directly to affiliate performance reviews.

For revenue-share programs, chargebacks reduce NGR (Net Gaming Revenue) or net revenue calculations, which in turn reduces the affiliate's future earnings. For CPA programs, operators may implement clawback provisions that reverse the commission if a chargeback occurs within a defined window. Understanding how chargebacks interact with commission structures is critical for both operators and affiliates.