Affiliate Summit East 2010
How to Eliminate Affiliate Fraud 100%
Rey PasinliExecutive 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
Flags for Affiliate Fraud
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?
Flags for Affiliate Fraud
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%
Flags for Affiliate Fraud
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%
Flags for Affiliate Fraud
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!
Flags for Affiliate Fraud
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
Flags for Affiliate Fraud
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%
Flags for Affiliate Fraud
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%
Affiliate ID
# of Trans Approval % Decline %
Refund Ratio
Bad Decline Code Ratio
Bad Call Ratio
Verification Call Ratio C/B Ratio Rebill Ratio Score
1 100 60% 40% 2% 0.05% 5% 90% 1.00% 65% 0.67%
2 200 75% 25% 5% 1.00% 10% 80% 2.00% 70% 0.41%
3 300 80% 20% 7% 2.00% 15% 75% 2.00% 60% 0.26%
4 400 84% 16% 9% 3.00% 20% 70% 3.00% 75% 0.24%
5 500 88% 12% 12% 4.00% 25% 65% 3.50% 55% 0.17%
6 600 90% 10% 15% 5.00% 30% 60% 4.00% 80% 0.19%
7 700 25% 75% 18% 6.00% 35% 55% 4.50% 50% 0.06%
8 800 65% 35% 22% 7.00% 40% 50% 5.00% 85% 0.14%
9 900 91% 9% 6% 8.00% 30% 40% 5.50% 45% 0.09%
10 1000 29% 71% 25% 15.00% 50% 30% 6.00% 90% 0.06%
The Big Picture
Questions & Answers
Rey PasinliExecutive Director
[email protected](949) 274-8975 X108
www.total-apps.com
Poll: Q&A for How to Eliminate Affiliate Fr...