A charge back is when the sale of the product that an affiliate is promoting falls through. This can happen for a number of different reasons. One, the customer may have used an invalid or unauthorized credit card. At first, the payment will look like it has gone through. However, it will eventually be canceled.
The second reason why a charge back may occur is that the customer manually canceled the sale. This can be done by blocking the transaction through their bank or by contacting the merchant directly. Finally, customers may return the product and get a refund.
With a charge back, affiliates do not get a commission. In the event that the commission was already rewarded and paid out, the advertiser may deduct the amount from future earnings. All of the details surrounding charge backs and how the advertiser will respond to them can be found in the agreement contract.