Creator risk and reversals

Without risk controls, a bad actor could create or encourage failed commitments, receive Creator upside, then push refunds or card disputes after the Creator has been paid. The risk hold, monthly batching, transfer reversals, correction documents, and offsets are designed to reduce that path.

• If the customer payment is refunded before the Creator bank payout, the related Creator allocation is no longer payable.
• If the allocation was only pending in Commitery, Commitery can mark it reversed or ineligible.
• If the allocation was already transferred to the Creator's Stripe Connect balance but not paid to the bank, Commitery can attempt a Stripe transfer reversal where available.

A card chargeback can happen after a customer was charged and after a Creator allocation was recorded. If the chargeback is lost, Commitery may no longer have the customer funds that funded the Creator allocation. In that case the Creator allocation can become recoverable from the Creator.

• Commitery records the Stripe dispute and links it to the commitment and Creator allocation where possible.
• Commitery tries direct recovery where funds are still available in Stripe Connect.
• If direct recovery is not available, Commitery can offset the amount against a future payout batch or request repayment.

An offset means Commitery reduces a future Creator payout by an amount the Creator is no longer entitled to keep. If the prior payout document already recorded the original amount, Commitery can issue a correction document so the accounting record matches the later recovery.

• Self-referrals or referrals to accounts controlled by the Creator.
• Fake commitments, fake proof, coordinated failed commitments, or coordinated chargebacks.
• Encouraging users to fail, refund, charge back, or dispute in a way designed to preserve Creator upside.
• Misleading users about the commitment amount, the failed-outcome charge, the Creator's upside, or the chance of a payout.