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 that 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At this point, these rewards are owned by the partner regardless of whether the partner has withdrawn the rewards or not. PartnerStack will not remove funds from a partner’s available 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 in 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 will create a negative reward for your partner.

Once the partner has earned new rewards totaling the value of the clawback, you will see a negative reward line on your next partner invoice. The clawed-back rewards are paid back by a reduced amount on your partner invoice.

The partner's view

When a clawback has been issued, your partner will see a manual, negative reward in their "Rewards & Withdrawals" tab. If you provide a reason for the clawback to our support team, this information will be visible to the partner in the reward description.

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Your partner may see a negative total rewards balance if the clawback total is higher than their available rewards. 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 your program until their reward balance becomes positive again.

Clawbacks and invoices

Clawbacks are paid back by a reduced amount on your next invoice once the partner has earned new rewards totaling the value of the clawback. 

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.

Requesting a clawback

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

When requesting a clawback please include the partner key or email of the partner the clawback should be created for, along with the clawback amount and reason you would like displayed to the partner. 

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