How to Manage & Run Chargebacks

In the unfortunate event that a policy cancels or lapses for non-payment, you can choose to deduct the commission/bonus the Team Member earned for that sale (either partially or in full) from the Team Member’s current month's bonus.

Your chargeback settings are customized to fit your needs and are usually configured during your initial account setup. If you’d like to adjust these settings, submit a Change Request form.

Each product can be assigned its own chargeback type: Prorated, Full, or Custom. However, the selected setting applies to all chargebacks within that product. For example, if Auto is configured as prorated, then all Auto sales will follow the same chargeback rule of prorated. 

Agents can also configure a Chargeback Months Limit per product. Common setups are 6 months for Auto and 12 months for Fire, Life, and Health, but the limit is fully customizable. Again, whatever is selected applies universally to all sales within that product.

The Chargeback Months Limit determines how long a policy must remain in force before no chargeback is owed. Example: if Auto is set to Prorated with a 6-month limit, and a TM earned a $40 commission on a policy issued Jan 1 that canceled in March, the policy was active for 3 of the required 6 months. In that case, the TM would owe back 50% of the commission, or $20.
 

To Enter a Chargeback in FrontRunner:

1. Click on the Sales tab

2. Locate the policy to be charged back and open it by clicking the edit icon:

   
   

3. This will open the policy on the sales page. Locate the field called "Chargeback Date", enter the date of the chargeback, then click Update Sale. [Please note: It is very important that you enter chargeback dates as you become aware of them, to ensure significant delays are avoided, which would cause the chargeback to be deducted from a pay period that has already passed.]

4. You can then view the chargeback by clicking on the Bonus tab and selecting the appropriate team member and bonus month for the chargeback date. In this example, the date of the chargeback was June 7, so to view the chargeback for that month, we have selected June 2022:

   

5. You can also view the chargeback details by navigating to the category of the policy (Auto, Fire, Life, Health, Bank) and clicking on the information button next to "Chargebacks":

   
   

Important Note: If you select a chargeback date on a period that has already been paid out, it will not charge it off in the next period. Instead, it will attempt to deduct the commission from the commission of the date you selected, which will be a pay period that has already passed and closed. To avoid this, please enter your chargebacks on a monthly basis.

If the policy being charged back is from a locked previous period:

1. Go to the Bonus Tab. 
2. Select the Team member and month that the policy was written.
3. Uncheck ‘Paid & Locked’ and hit Submit. (This opens that sales periods so now you can go to the Sales tab and enter the chargeback date.)
4. Once this has been completed, you will go back and lock the sales period again.
    

PLEASE SUBMIT A CHANGE REQUEST FORM
TO REQUEST UPDATES TO YOUR CHARGEBACK SETTINGS. 

If you have any remaining questions after reviewing our Help Articles, please send an email to [e-mail]. Please be descriptive and include as much info as possible in order to expedite a resolution. You may also visit the Support tab, located at the top of the page, for additional helpful resources!