D2D glossary / How reps get paid
What is a chargeback in door-to-door sales?
Chargeback (clawback): A chargeback, also called a clawback, is commission a company takes back after it was paid because the customer canceled, never installed or stopped paying inside a set window.
Chargebacks are how companies handle deals that fall apart after payday. The amount is usually deducted from a future paycheck. The window differs by company and industry: it can be a few weeks for a fiber install or many months for a pest or security account.
A chargeback is normal when the sale truly failed. It becomes a problem when the window is long, the reasons are vague, or chargebacks keep arriving after you have left the company. Reps who sell clean accounts to customers who understand what they bought see far fewer of them.
Ask before you sign
How long can a sale be charged back, for which reasons, and what happens to chargebacks after I leave?
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Chargeback (clawback): quick answers
What is a chargeback in door-to-door sales?
A chargeback, also called a clawback, is commission a company takes back after it was paid because the customer canceled, never installed or stopped paying inside a set window.
What should I ask a company about chargebacks?
Ask this before you sign: "How long can a sale be charged back, for which reasons, and what happens to chargebacks after I leave?" Get the answer in writing, in the rep agreement or the pay plan.