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The digital marketing glossary > C > What is Commission reversal definition?

What is Commission reversal definition ?

A commission reversal is when a merchant cancels an affiliate pending commission. Affiliate commission reversals can occur for many reasons:
- the customer has cancelled the order
- the merchant cancels the sale for fraud
- it is a duplicate or repeat order
- the product is no more available
- affiliate fraud
- chargebacks by Mastercard / VISA
- ...

Affiliates do not like too many reversals from a merchant and even less unexplained reversals. A merchant must have a clear reversal policy with a locking period. Some have a "no reversal policy".

An example of reversal policy:

A commission reversal on an affiliate dashboard:

A merchant can specify a reason for reversal to the affiliate in an affiliate network platform:

affiliate commission reversal

See also reversal rate.

Published on Friday 25 January 2013, mis a jour le Saturday 26 January 2013 (Authors)