Actually 1.3% chargeback is pretty high. We're talking chargebacks here, not refunds. There's a big difference.
So we were pulling $60,000 per month gross and clickbank terminated our account for having a 1.3% - 1.4% chargeback rate. All our monthly subscribers cancelled and 2 months of payments were refunded, all my affiliates screwed also.
Which product(s)? A chargeback rate over 1% is actually pretty darn high...did CB give you any warning before the termination?
pre-foreclosure home purchase niche; no they didn't give any warning. i can appeal to start selling again but not that i would want to through clickbank, other processors allow far higher chargeback rate than 1.3%. 1.3% is not even high, that includes all visa/master/amex, we were charging people monthly
Actually that's quite high. Almost all merchant accounts require a chargeback rate of less than 1%. I hate to ask what your refund rate was? With that kind of money in play, you should have had a good help-desk in play (along with other tools) to keep your chargebacks lower.
Are you sure that Chargeback rate is the reason why your product got banned? What is your refund rate?
Ok , here is my educated opinion on this. First of all you failed to mention the chargeback rate compared to what timeframe. For example 1.3 for the last 30 days / 60 days / 90 days ? It's critical to understand the timeframe, A product could have much lower sales for the last 30 days but still get chargeback rates from a much higher sales volumes from 90 days ago (chargebacks may take months to process) and that means that the chargeback percent does not actually show the true rate for the last 30 days as it represents a much higher sales volume from months back. Secondly, I do not see how this could be the only reason for a product to be removed. How much complaints did you get? What is the refund rate? Unless click bank made major changes to it's policies I don't see how this could be the only reason for removal. Regarding the other comments , 1 percent chrgbk is the industry average and barely covers credit fraud cases which would be at least one percent. Some niches are more vaunrable to credit fraud than others and can easily reach 1.3 even if it's a very good product. Maybe you can post some more info on your conversations with click bank and supply us with more details.
Another point to consider. The regulation o recurring billing products has increased ten fold Since the last FTC lawsuits and it would be a safe bet that click bank has a much lower tolorence to recurring billing products and their chargeback rates. In the last few weeks click bank sent several guidelines to it's vendors regarding these type of products. I also saw several major vendors removed from the marketplace. Stream direct being one of them.
I dont see how this is a problem for 95% of clickbank sellers. The guys i make pages and ebooks for never have issues with chargebacks at that rate!