Q: My program has no clawback rule — is that a problem?

Q: My program has no clawback rule — is that a problem?

Yes. Without a clawback (your right to reverse a commission after it's been paid), you're paying full price for refunds, chargebacks, and fraud you only discover after the affiliate cashes out.

Fix it before your next payout:

— Write a return/chargeback clawback into your terms: commissions on orders refunded within X days are reversed.

— Add a hold period ("lock window") of 30-45 days before a commission becomes payable, matching your refund cycle.

— Reconcile clawbacks against the next invoice, not the current one — chasing money back after payout almost never works.

— Cap negative balances so one bad month can't make a partner "owe" you forever; they'll just quit and you eat it anyway.

Caveat: be transparent. Surprise clawbacks burn trust fast. Publish the rule, show the reversed orders, and good partners won't blink.

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