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
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:
See also reversal rate.