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Affiliate Summit East 2010<br />How to Eliminate Affiliate Fraud 100%<br />Rey Pasinli<br />Executive Director, Total-Apps...
Introduction<br /><ul><li> Who is Total Apps, Inc.?
 Causes of Chargebacks
 Traffic flow
 Flags for Affiliate Fraud
 The BIG Picture </li></li></ul><li>Causes of Chargebacks<br /><ul><li> Customer Fraud
 Operations
 Customer Service
 Product Fulfillment
 Affiliate Fraud
 Stolen Cards
 Pre-paid Cards</li></li></ul><li>Traffic flow <br /><ul><li> Sub-Affiliate
 Publisher
 Network
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How to Eliminate Affiliate Fraud 100%

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Step-by-step detailed review of proven techniques and technologies to eliminate affiliate fraud.

Experience level: Beginner, Intermediate, Advanced
Target audience: Affiliates/Publishers, Merchants/Advertisers, Networks, Other
Niche/vertical: FTC

Rey Pasinli, Executive Director, Total Apps, Inc.

Published in: Business
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How to Eliminate Affiliate Fraud 100%

  1. 1. Affiliate Summit East 2010<br />How to Eliminate Affiliate Fraud 100%<br />Rey Pasinli<br />Executive Director, Total-Apps<br />
  2. 2. Introduction<br /><ul><li> Who is Total Apps, Inc.?
  3. 3. Causes of Chargebacks
  4. 4. Traffic flow
  5. 5. Flags for Affiliate Fraud
  6. 6. The BIG Picture </li></li></ul><li>Causes of Chargebacks<br /><ul><li> Customer Fraud
  7. 7. Operations
  8. 8. Customer Service
  9. 9. Product Fulfillment
  10. 10. Affiliate Fraud
  11. 11. Stolen Cards
  12. 12. Pre-paid Cards</li></li></ul><li>Traffic flow <br /><ul><li> Sub-Affiliate
  13. 13. Publisher
  14. 14. Network
  15. 15. Advertiser
  16. 16. Gateway
  17. 17. Processor
  18. 18. Order Fulfillment
  19. 19. Customer Service</li></li></ul><li>Flags for Affiliate Fraud <br />Approval Ratio<br /><ul><li> What is an Approval Ratio
  20. 20. # Approved Transactions / # of Submitted Transactions
  21. 21. Factors affecting Approval Ratio:
  22. 22. Fraud Scrubbing
  23. 23. Transaction Size
  24. 24. Affiliate Fraud
  25. 25. What to look for:
  26. 26. 80% - 95% is IDEAL
  27. 27. 65% - 80% is MARGINAL
  28. 28. Below 65% means there’s a problem
  29. 29. What about a 100% approval ratio?</li></li></ul><li>Flags for Affiliate Fraud <br />Refund Ratio<br /><ul><li> What is a Refund Ratio?
  30. 30. # Refund Transactions / # of Submitted Transactions
  31. 31. Factors affecting Refund Ratio:
  32. 32. Price
  33. 33. Product Quality
  34. 34. Recurring Billing
  35. 35. Customer Service
  36. 36. Order Fulfillment
  37. 37. Affiliate Fraud
  38. 38. What to look for:
  39. 39. Refund ratio less than 5%
  40. 40. Refund ratio greater than 15%</li></li></ul><li>Flags for Affiliate Fraud <br />Bad Decline Code Ratio<br /><ul><li> What is a Bad Decline Code Ratio
  41. 41. # Bad Decline Transactions / # of Submitted Transactions
  42. 42. What are the Bad Decline Codes:
  43. 43. Card Stolen
  44. 44. Pick up card
  45. 45. Call Card Issuer
  46. 46. What to look for:
  47. 47. Multiple Bad Decline code transactions in a row
  48. 48. Bad Decline Code Ratio above 4%</li></li></ul><li>Flags for Affiliate Fraud <br />Bad Call Disposition Ratio<br /><ul><li> What is a Bad Call Disposition Ratio
  49. 49. # Bad Customer Calls/ # Total Customer Calls
  50. 50. What are Call Dispositions:
  51. 51. Used by inbound customer service centers
  52. 52. Each call is given a disposition or reason code
  53. 53. Bad Disposition Codes:
  54. 54. Did not authorize
  55. 55. Card stolen
  56. 56. Never placed order
  57. 57. What to look for:
  58. 58. Bad Disposition Code Ratio above 25%
  59. 59. Don’t forget, consumers lie too!</li></li></ul><li>Flags for Affiliate Fraud <br />Verification Call Ratio<br /><ul><li> What is a Verification Call Ratio:
  60. 60. # Verified Calls / # of Total Outbound Calls Attempted
  61. 61. What are Verification Calls:
  62. 62. Use outbound calls to verify each order
  63. 63. People who just ordered online should pick up the phone
  64. 64. Make calls in real time, not the following day
  65. 65. What to look for:
  66. 66. Calls not being answered
  67. 67. Customers should answer phone 50% of the time
  68. 68. Customers don’t validate recent order 100% of the time</li></li></ul><li>Flags for Affiliate Fraud <br />Chargeback Ratio<br /><ul><li> What is a Chargeback Ratio:
  69. 69. # of Chargebacks / # of Total Transactions
  70. 70. Why are Chargebacks Bad:
  71. 71. They cost you lots of MONEY
  72. 72. Get over 50/100 and you’ll lose your merchant account
  73. 73. Get too many chargebacks and you’ll get fined $100K!
  74. 74. What to look for:
  75. 75. Chargeback ratio over 2%</li></li></ul><li>Flags for Affiliate Fraud <br />Rebill Ratio<br /><ul><li> What is a Rebill Ratio:
  76. 76. # of Rebills / # Initial Transactions
  77. 77. What affects the Rebill Ratio:
  78. 78. Price
  79. 79. Customer Service
  80. 80. Fulfillment
  81. 81. Affiliate Fraud
  82. 82. What to look for:
  83. 83. Rebill Ratio less than 65%</li></li></ul><li>The Big Picture <br />
  84. 84. Questions & Answers<br />Rey Pasinli<br />Executive Director<br />rey@total-apps.com<br />(949) 274-8975 X108<br />www.total-apps.com<br />
  85. 85. Don’t forget: You can copy-paste this slide into other presentations, and move or resize the poll.<br />Poll: Q&A for How to Eliminate Affiliate Fr...<br />

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