Clawbacks and Incorrect Rewards

  • Updated

Who is this article for?

This article will be useful to you if are a company on PartnerStack looking to reclaim incorrectly paid rewards.

Overview

In the rare case a partner receives an incorrect reward on PartnerStack, program managers have a few options to balance the books.

When a rewards invoice is paid, PartnerStack moves the rewards into the partner’s withdrawal balance.

At this point, these rewards are owned by the partner regardless of whether the partner has cashed out yet or not. PartnerStack will not remove these funds from a partner’s withdrawal balance.

There are two ways to balance the books after a partner has been paid out an incorrect balance:

1. External reimbursement
2. Clawbacks

External Reimbursement

If the partner is communicative with your company and is willing to return the funds, the company and the partner can arrange for a reimbursement payment outside of PartnerStack.

This can come many forms (eTransfer, Paypal, wire, cheque, etc) outside of PartnerStack. No action will be taken within PartnerStack to settle this reimbursement: all reward, invoice, and payout balances will remain the same.

Clawbacks

A clawback is a negative reward. If a partner has been incorrectly rewarded and you would like to initiate a clawback, please contact PartnerStack support at support@PartnerStack.com.

Generating a clawback will create a negative reward line for both the partner’s reward total, as well as the company’s next reward invoice.

The company will be paid back by the reduced amount on the next invoice.

The partner will see a negative value in their rewards list and may have a negative total rewards balance. For example, a partner who has earned $20 in a month, and then receives a $100 clawback will now have a reward balance of –$80.

The partner will not be able to withdraw any rewards for the program until their reward balance becomes positive again.

Clawbacks and invoices

Companies should note that clawbacks will only appear on invoices that are larger or equal to the clawback amount. For example, an invoice for $50 in rewards will not have a clawback of -$100, which would make the invoice negative.

Clawbacks will sit in a holding state until an invoice is large enough to hold the clawback without creating a negative invoice amount.

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