How to Eliminate Affiliate Fraud 100%

Affiliate Summit East 2010
How to Eliminate Affiliate Fraud 100%
Rey Pasinli
Executive Director, Total-Apps

Introduction
Who is Total Apps, Inc.?
Causes of Chargebacks
Traffic flow
Flags for Affiliate Fraud
The BIG Picture

Causes of Chargebacks
Customer Fraud
Operations
Customer Service
Product Fulfillment
Affiliate Fraud
Stolen Cards
Pre-paid Cards

Traffic flow
Sub-Affiliate
Publisher
Network
Advertiser
Gateway
Processor
Order Fulfillment
Customer Service

Approval Ratio
What is an Approval Ratio
# Approved Transactions / # of Submitted Transactions
Factors affecting Approval Ratio:
Fraud Scrubbing
Transaction Size
Affiliate Fraud
What to look for:
80% - 95% is IDEAL
65% - 80% is MARGINAL
Below 65% means there’s a problem
What about a 100% approval ratio?

Refund Ratio
What is a Refund Ratio?
# Refund Transactions / # of Submitted Transactions
Factors affecting Refund Ratio:
Price
Product Quality
Recurring Billing
Customer Service
Order Fulfillment
Affiliate Fraud
What to look for:
Refund ratio less than 5%
Refund ratio greater than 15%

Bad Decline Code Ratio
What is a Bad Decline Code Ratio
# Bad Decline Transactions / # of Submitted Transactions
What are the Bad Decline Codes:
Card Stolen
Pick up card
Call Card Issuer
What to look for:
Multiple Bad Decline code transactions in a row
Bad Decline Code Ratio above 4%

Bad Call Disposition Ratio
What is a Bad Call Disposition Ratio
# Bad Customer Calls/ # Total Customer Calls
What are Call Dispositions:
Used by inbound customer service centers
Each call is given a disposition or reason code
Bad Disposition Codes:
Did not authorize
Card stolen
Never placed order
What to look for:
Bad Disposition Code Ratio above 25%
Don’t forget, consumers lie too!

Verification Call Ratio
What is a Verification Call Ratio:
# Verified Calls / # of Total Outbound Calls Attempted
What are Verification Calls:
Use outbound calls to verify each order
People who just ordered online should pick up the phone
Make calls in real time, not the following day
What to look for:
Calls not being answered
Customers should answer phone 50% of the time
Customers don’t validate recent order 100% of the time

Chargeback Ratio
What is a Chargeback Ratio:
# of Chargebacks / # of Total Transactions
Why are Chargebacks Bad:
They cost you lots of MONEY
Get over 50/100 and you’ll lose your merchant account
Get too many chargebacks and you’ll get fined $100K!
What to look for:
Chargeback ratio over 2%

Rebill Ratio
What is a Rebill Ratio:
# of Rebills / # Initial Transactions
What affects the Rebill Ratio:
Price
Customer Service
Fulfillment
Affiliate Fraud
What to look for:
Rebill Ratio less than 65%

The Big Picture

Questions & Answers
Rey Pasinli
Executive Director
rey@total-apps.com
(949) 274-8975 X108
www.total-apps.com

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How to Eliminate Affiliate Fraud 100%

by Affiliate Summit on Aug 23, 2010

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