Chargebacks are basically
upgrade payments that have been
contested by the card holder.
When a credit/debit card holder
contests a payment (legitimately or
otherwise) the bank automatically
deducts this amount from our account
until the issue has been resolved.
When a chargeback does occur we
deduct 50% of the original upgrade
fee from your account in the same
way that we pay out 50% of the total
upgrade fee each time a member
upgrades their membership. This is
one of the reasons for the 2 month
lag regarding site payouts.
Fig1. Totals screen in admin
area.
Occasionally the
bank will ask us if we wish to
contest a chargeback. When this
happens we will present the bank
with any evidence that proves the
transaction was legitimate and we
are usually refunded the amount that
was originally taken.
For each chargeback that we are
issued with, we receive a fax from
the bank that details that
particular chargeback. (fig.2)
How does this affect me?
As mentioned previously, the bank
deducts the full price of the
contested transaction from our
account. As the amount for the
original transaction has been
deducted from our account, we deduct
the amount that we were originally
set to pay out to you from your next
payout cheque.
Chargebacks occur usually up to 6
months after the original
transaction has taken place but
there may be exceptions. We reserve
the right to deduct the appropriate
chargeback amount from your payout
total as and when they should occur.
Fig2. Chargeback example.
Deductions will only
be made from impending payouts. If
your total earnings for the month
are zero or a negative amount we
will not invoice you for the
chargeback amount but will deduct
the negative amount from your next
set of positive earnings.
