LIQUOR SALES MERCHANT ACCOUNTS

HIGH RISK MERCHANT ACCOUNTS FOR LIQUOR SALES & LIQUOR CLUBS.
FASTER APPROVALS. COMPETITIVE PRICING. BETTER SERVICE.

Payment Processing for Liquor Sales

Liquor sales have increased in popularity and the ease of shopping and purchasing online has consumers shopping and buying a wide range of products on the internet. This includes age restricted products such as alcohol thanks to advancements in authenticating digital identities and validating the age of the customer. To help merchants understand how to sell age restricted products online DigiPay Solutions has created a liquor sales report with additional important information about setting up a merchant account, controlling chargebacks, managing risk, and keeping merchant accounts in good standing.

Who is DigiPay Solutions?

DigiPay Solutions is a recognized payment processing brand among leading liquor companies. The company’s extensive network of partner banks, payment experts and elite portfolio of tailored solutions has helped launch entrepreneurial start-ups and take enterprise organizations to the next level of corporate growth.

Thousands of merchants, from start-ups to enterprise-scale organizations, leverage DigiPay’s curated knowledge of high-risk payments to securely process hundreds of millions across an array of vertical industries. DigiPay works closely with liquor merchants to provide tailored solutions and timely advice, while helping them maintain the highest standards of banking and payment card industry compliance.

DigiPay’s team of experts, combined with our partners’ proven record of successful liquor sales can facilitate successful new company launches and help existing businesses grow and scale.

Liquor Processing Primer

A Brief Guide to the Liquor Industry

Liquor Sales: An Economic Overview

The spirits industry is a $150 billion industry in 2014. Total revenue from distilled spirits accounted for $20.2 billion in 2014 (40% of total alcohol beverage revenue).

Any occasion can be improved a smooth liquor. According to The Most 10, rum & coke is the second most popular alcoholic beverage in the world, vodka & orange juice is third, tequila is 4th, margaritas (a tequila-based cocktail) is 5th, and absinthe is the 10th most popular alcoholic beverage in the world.

The upcoming trend within the spirits industry is that people are now beginning to realize that their time is better spent drinking their spirits at home and not wasting their precious time on waiting in lines. This is great news for those who plan on selling their liquor online. By providing customers with a way to purchase their liquor online, companies can appeal to those who prefer the convenience of drinking at home.

SIC, NAICS & MCC Codes

The liquor sales industry providers are categorized by SIC Codes, NAICS Codes and Visa Merchant Category Codes (MCC) to comply with payment card industry requirements.

Proper classification is vitally important to prevent funds from being held in reserve for misrepresentation. The liquor industry has a specific SIC code which is grouped under “Beer, Wine, and Liquor stores” in NAICS or MCC codes, and can be classified according to the nature and focus of services. The following are some examples:

SIC Code 5182: Wine and Distilled Alcoholic Beverages

SIC Code 5921: Liquor Stores

SIC Code 2085: Distilled and Blended Liquors

NAICS 312140: Distilleries

MCC Code 5921: Package Stores, Beer, Wine, Liquor

Additional information on Visa MCC can be found in this downloadable guide.

Leaders and Rising Stars

Top performing companies in the liquor industry are seeing more success by offering customers the ability to purchase their spirits online. With the internet, people are now able to comfortably buy spirits from the convenience of their own homes.

Here are a few leading companies in the space:

  1. Diaego:

    With their home turf found in London, England, Diaego is one of the biggest international liquor companies in the world. Some of their notable brands include Captain Morgan, Ketel One, and Smirnoff. The company was created from the merger between Guinness and Grand Metropolitan. While they originally owned Burger King and Pillsbury, they sold them off in 2000 to focus purely on liquor.

  2. Pernod Ricard:

    Born of a 1975 merger between two French based liquor distributors, Pernod Ricard is now home to some of the world’s most recognizable international brand of liquors. Their most recognizable brands include Absolut, Jameson, Beefeater, Malibu, Kahlua, and Glenlivet.

  3. Bacardi:

    Located in Bermuda, Bacardi used to deal in only rum. Since 1993, their company merged with Martini & Rossi to create many, many more of the liquors and spirits that we know and love today. Some of their most popular brands include Grey Goose, Bombay Sapphire, Bacardi, ad Dewars.

  4. Tasters Club:

    Have you ever wanted to have your favorite type of liquor delivered to your door? Thanks to the Tasters Club, now you can! With over 11 clubs, you can join one or many to have your favorite spirits delivered directly to your doorstep!

  5. Your Name Here:

    With your great brand story and DigiPay Solutions as your processing partner, there’s no limit to how far you can scale your company. DigiPay’s diverse, extended family of liquor sale services process anywhere from $20,000 to millions in monthly revenue.

Interested in learning more about Publicly Traded Liquor Sales Companies listed on Major U.S. Exchanges?

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Liquor Sale Services

Liquor stores allow people to buy their favorite types of spirits, whether they are to drink on their own or to be mixed with other cocktails. No matter how you drink your liquor, everyone can agree that they’re delicious!

The following are examples of how liquor is being sold:

  • • Liquor clubs: Just like wine clubs, liquor clubs are now selling unique, diverse spirits through subscription based services. With companies such as the Tasters Club, you can get all your favorite spirits delivered straight to your front door. No more growing to the grocery store or waiting in line at the distillery. Not to mention that this is a fantastic method to taste a wide variety of liquors for a cheaper price in order to discover your favorite one.

Opportunities and Challenges

Liquor has been around for a long, long time. Even today, the liquor industry is still changing. Online liquor sales and the increased growth of distilleries around the world are shaking up the alcohol industry once again.

According to the Fortune, liquor sales saw growth in the following areas:

  • • Volume of spirits sold at retail locations went up by 2.4% in 2016
  • • Volume for super premium spirits jumped up by 10.8% while high end premium spirits had a 5.5% increase in 2016

From baby boomers to millennials, liquor consumption shows no signs of slowing down. Many people are searching for new, innovative spirits that will satisfy their palettes while providing them with a new, satisfying taste that they have not experienced before. People are also becoming interested in buying their liquors online from the convenience of home.

The challenges that may arise within the world of liquor sales is that there is a lot of competition in the industry. Many of these companies have been brewing and distributing their liquors for centuries. Selling and distributing your spirits may be difficult at first, but with innovative products and great customer service, you can climb your way to the top of the liquor ladder.

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Enabling Liquor Sales Service Commerce

How do I create an eCommerce merchant account?

The first step in enabling commerce is to establish a merchant account. Liquor sales are classified as high-risk, making industry service providers ineligible for merchant accounts at numerous sponsoring banks. DigiPay’s expanded network of banking relationships accepts the liquor sales category and provides competitive rates, terms and conditions.

Liquor sales providers may find it advantageous to work with processing partners who are familiar with their industry, jargon and common business practices. Payment processing sales representatives who are not familiar with liquor sales service lingo and practices may be less effective at managing relationships due to their learning curves. When liquor services work with knowledgeable processing partners, they can save time and money, improve efficiencies and attract and retain more customers and followers.

Why are liquor sales companies considered high-risk?

Many banks will not accept liquor sale businesses due to the industry’s higher-than-average number of chargebacks. An entrepreneurial start-up company that has created a mobile app or liquor sales website may not anticipate the risks involved in working with consumers whose sometimes unrealistic expectations about buying liquor. Given that many banks may not understand the online liquor industry and that people desire these products, it may be difficult for them to find a bank that understands the process.

Here are some risks commonly associated with online liquor sales services:

  1. Subscriber Remorse:

    Consumers who opt in to a repayment plan with automatic monthly payments may forget that their credit card will automatically be billed every month. They will then dispute the charge that appears on their credit card statement. Many card issuing banks require consumers to contact the merchant before they process a chargeback request.

  2. Age Verification for Alcohol Sales:

    Online liquor stores in the early stages of setting up their businesses may not have the appropriate levels of customer service support to deal with consumer complaints and inquiries. Consumers who are unable to communicate their concerns to merchants are at increased risk of turning to payment card issuers for refunds and chargebacks. While it may not seem very important to have an identification and verification check on your website, the fact is that it can prevent you from a lawsuit. If a minor buys alcohol off of your website, then you will be held liable for the sale. With Aristotle’s age and identification verification, you can rest easy knowing that your products will be shipped off to those of the minimum legal age.

    You can read more about age and identity verification on our website.

  3. Lack of Infrastructure:

    Liquor sales companies in the early stages of setting up their businesses may not have the appropriate levels of customer service support to deal with consumer complaints and inquiries. Consumers who are unable to communicate their concerns to merchants are at increased risk of turning to payment card issuers for refunds and chargebacks.

Can DigiPay Acquire Liquor Merchant Accounts?

Yes, at DigiPay, liquor sales services are in our DNA. Our financial services specialists are familiar with the industry’s unique framework and diversified categories, business models, SIC and NAIC codes and VISA MCC. We underwrite our merchants before sending their applications to our sponsor bank.

Once new merchants establish credibility and trust with DigiPay banking partners, they receive personalized attention and ongoing risk management from DigiPay’s team of payment specialists. This personalized service, coupled with the sheer volume of transactions we process through multiple banks, ensures our merchants receive the highest level of service and support.

Choosing the right payment processing partner is critical, because without the ability to accept payments, merchants are out of business. DigiPay’s merchant onboarding process combines sophisticated technology with human oversight. Experienced underwriters who understand the liquor sales industry, and have expertise in payment card brand and banking industry compliance, bring a refreshingly holistic approach to new account set-ups.

Whether you’re selling your liquor online or through a liquor club subscription service, interactive website or mobile app, DigiPay Solutions will give every merchant the attention and resources they deserve and a one-stop shop for processing solutions. The liquor industry is growing and DigiPay can accelerate that growth. The first order of business is eliminating any barriers to progress. Look no further than DigiPay Solutions, where getting a merchant account will open doors to a bright and prosperous future.

Why is so much information required to obtain a Liquor Sales Merchant Account?

Because of the higher risk associated with liquor sales, more due diligence is required during the new merchant onboarding process. This means underwriters need to review a range of documents to assure the business is compliant, financially sound, and a good credit risk. DigiPay is unique because we underwrite merchants in-house before we submit their applications to the bank. Because our team of underwriters is experienced in high-risk, your business is presented to the bank with all required documents and full disclosure, to engender trust and stability.

Presenting your business in the best possible light from point of first contact is important because merchant accounts are essentially a line of credit from a processor. Because high-risk merchants have higher chargeback ratios and regulatory exposure, financial institutions are concerned they may violate card brand rules, laws and regulations. Complaints to the FDA and the FTC against a merchant create liability not only for merchants, but can also hold processors accountable under Know Your Customer (KYC) regulations.

DigiPay’s in-house team of underwriters and risk managers have curated knowledge in all areas of high risk. We are best qualified to guide you through the process efficiently and painlessly while helping to present your business to increase approval and gain credibility.

How do I increase my processing limits?

Once a high-risk liquor merchant account is approved, payment processors typically set monthly processing limits for new businesses between $25,000 and $1000,000 per month, for the first three-to- six-months. This gives processors time to develop a customer risk profile by evaluating payment flows, average ticket sizes, processing levels and chargeback ratios.

Managing Alerts, Refunds and Chargebacks

Maintaining a low chargeback ratio is key to maintaining a healthy merchant account. When chargebacks exceed card brand maximums, your merchant account is at risk of being shut down. If a merchant category has consistently excessive chargebacks, banks will sometimes shut down an entire vertical industry. For this reason, it is critical for high risk verticals to self-regulate and work collaboratively to establish industry best practices.

DigiPay Chargeback Champion:

Chargebacks can be an emotionally charged issue for many merchants, but with the right systems in place, managing and defending against them can be a routine part of any merchant’s business. DigiPay Solutions’ team of Chargeback Champions works with business partners to identify the root causes of chargebacks, proactively avoid them whenever possible and effectively address each chargeback and retrieval request.

Why do chargebacks happen?

Chargebacks happen for many reasons and DigiPay’s elite team of Chargeback Champions are expert at analyzing why. Our proactive approach includes:

  • • Preventing alerts and chargebacks through proven best business practices
  • • Advanced fraud technology managed by experienced risk managers
  • • Dynamic identity graphs that link transaction data with human behavior

How can I track my chargeback and refund ratios?

Keeping track of your Transaction Chargeback Ratio as well as your Volume Chargeback Ratio is critical because this is what Visa, Mastercard and payment processors monitor. Payment processors with high chargeback ratios in their merchant portfolios can trigger unannounced audits by Visa or Mastercard. For this reason, DigiPay, powered by TranZlytics, closely monitors chargeback and refund ratios, reacting quickly to spikes in activity. Excessive refunds, frequently the result of alerts, can be a sign of fraud or poor business practices, information the card brands and banks may consider when assessing risk.

The formulas shown below use simple math to derive Transaction Chargeback, Volume Chargeback and Refund Ratios:

  1. Transaction Chargeback Ratio:

    Add total monthly number of chargebacks and divide by total monthly number of transaction. For example – if during a month you processed 500 sales, and there were 10 chargebacks, your chargeback ratio would equal 10/500, or 2.00%.

  2. Volume Chargeback Ratio:

    Add total monthly dollar amount of all chargebacks and divide by the total monthly sales volume.
    For example – if during a month, you processed 500k in sales, and your chargebacks were 10k, your chargeback ratio would equal 10/500, or 2.00%.

  3. Transaction Refund Ratio:

    Add total monthly number of refunds and divide by total monthly number of transactions.
    For example – if during a month you processed 500 sales, and there were 10 refunds, your refund ratio would equal 10/500, or 2.00%.

  4. Volume Refund Ratio:

    Add total monthly dollar amount of all refunds and divide by the total monthly sales volume.
    For example – if during a month, you processed 500k in sales, and your refunds were 10k, your refund ratio would equal 10/500, or 2.00%.

How do I maintain low chargeback and refund ratios?

It is important not to ignore chargebacks, because win/loss ratios matter. Visa and Mastercard can impose penalties and fines in the tens of thousands on payment processors and their sponsoring banks for continuing to process transactions for merchants that exceed the permissible 2 percent chargeback ratio. Non-compliant processors and banks may also be subjected to further scrutiny and potential shut-down by card brands and regulators.

Here are some recommended ways to maintain low chargeback and refund volume ratios:

  • Stop fraud before it happens:

    Proactively identify fraudulent and stolen cards and suspicious behavior when possible.

  • Be accessible to customers:

    Dissatisfied customers who have access to live support will frequently be satisfied that they had the opportunity to air their grievances. They may be satisfied with a simple return or refund and find it unnecessary or initiate a dispute or chargeback.

  • Maintain a high transaction count:

    Companies with high levels of credit card transactions are in a better position to absorb chargebacks. Low-volume merchants can find themselves in the dubious position of having a high chargeback ratio with just a few chargebacks.

  • Maintain excellent logistics and fulfillment:

    In the always-on, always-connected world, customers expect immediate confirmations and emailed receipts when they place orders online. A good CRM program can automate this process. The DigiPay TranZlytics Gateway is preconfigured to display a merchant’s contact information and customer service number and ensure that collateral, training guides and supplemental materials are locatable by including tracking information with each shipment notification.

  • Use email marketing:

    Follow product orders and shipments with a simple survey or thank you email. This simple gesture will improve brand recognition when customers receive their credit card statements and make it easy for them to contact your company to complain or request a refund.

  • Initiate pre-chargeback and refund alerts:

    Create instant notifications of incoming requests for refunds, chargebacks and assorted customer inquiries. These services can be implemented in-house or outsourced to third-party providers. Merchants have a small window to react to customer disputes before card brands rule in favor of consumers. Automated chargeback and refund alert systems help merchants mitigate risk.

  • Implement a billing support hotline:

    Providing customers with a dedicated, toll-free number and email address will alleviate their concerns and build good will. Online liquor sales service businesses that are responsive to customer inquiries have been shown to increase customer loyalty and decrease chargeback and refund ratios.

  • Create an easy refund process:

    Refunds are a reality of life and a cost of doing business in the liquor industry. By accounting and budgeting for refunds and spirits sales merchants can accommodate dissatisfied customers, avoid chargebacks and improve transaction flows.

Chargeback Mitigation Companies for Liquor Merchants

Merchants can handle chargebacks in-house or outsource to a Chargeback Mitigation Specialist. The following companies are experienced in identifying all forms of fraud, including friendly fraud:

Chargeback Mitigation Companies:

  • MIDigator*
  • Chargeback Guru*
  • Chargebacks.com
  • Chargebacks 911
  • Chargeback 360

*DigiPay Preferred Provider

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How do I choose an eCommerce gateway?

Liquor sales service providers rely on ecommerce and Mail Order/Telephone Order (MOTO) sales to scale their businesses. Credit card payments transacted online or by phone are called Card Not Present (CNP) transactions. Online CNP transactions involve credit card gateways that transmit payments from merchants to their payment processors.

Following is a list of recommended attributes of payment gateways that address the unique requirements of liquor sales service industries:

Support multiple merchant account IDs (MIDs):

Many liquor sales services need multiple merchant accounts to support their diversified array of training programs. Gateways should ideally be able to manage multiple merchant I.D.s organized under one master MID relationship.

Simple integration:

Payment gateways need to seamlessly integrate into CRMs, POS systems, third-party software, and eCommerce shopping carts to facilitate all forms of online, MOTO and in-store commerce.

Enhanced reporting tools:

Spirits sales merchants need access to a variety of real-time reports and transaction data to grow and scale their businesses and manage chargebacks and refunds.

Merchant Dashboard, with permission levels:

In addition to enhanced reporting, liquor sales merchants need secure access to transaction data from anywhere they happen to be working, with built-in permission levels to facilitate all levels of employees and management.

Payment gateways must comply with the Payment Card Industry Data Security Standard (PCI DSS). Ask your gateway provider if they are PCI DSS compliant and verify their certificate annually. Liquor merchants also need a gateway with a data vault for tokenization of credit card numbers and encryption of customer personally identifiable information (PII). Tokenization replaces a Primary Account Number (PAN) with a randomly generated set of numbers and records this in the data vault. This is to prevent hackers from accessing customer data. By storing PII and PAN in a highly secure, offsite location merchants shift their liability to the gateway provider. Encryption and tokenization keep your customer’s information safe while allowing merchants access to the data for future transactions.

TranZlytics Gateway:
Choosing the right gateway provider is critical for high-risk merchants and their processors. DigiPay’s chosen gateway is TranZlytics. TranZlytics offers high risk merchants a Gateway and HUB built from the ground up for high-risk and CNP merchants. The solution includes transaction analytics and fraud prevention and built-in advanced chargeback management.

TranZlytics also offers advanced real-time reporting for faster and better use of CRM data. Payment descriptors are registered with a Chargeback Alerts program; re-presentments are pre-integrated with the gateway.

With a single HUB for transaction management and expert risk management team to monitor your data, you can focus on what you do best, growing your business. Think of Tranzlytics as an online and mobile liquor sales Payment HUB with the IQ of Einstein and the memory of an elephant.

CRMs for Liquor Sales Services

Customer Relations Management (CRM) software is a basic requirement, both for large enterprises and small companies that want to scale and grow their businesses. These systems are designed to automate the lifecycle of product offerings and to facilitate payments. As with payment gateways, it is vitally important to validate the CRM is PCI DSS compliant if it is touching customer information. Unlike payment gateways, CRM’s are not rigorously monitored for PCI DSS compliance; a security breach can devastate your business and erode customer trust.

Below are examples of CRMs used by professional liquor sales service entrepreneurs and enterprise-level service providers:

  • mPower:

    mPower is a CRM made specifically for liquor retailers. With their program, you can integrate the cloud, have advanced inventory control, fast and reliable checkout, and more! With their program, you will find a program that helps you to organize your store in a reliable and convenient way. Learn more about mPower here.

  • Windward Software:

    Windward Software uses a simple system to help you manage your liquor store business. Their program includes a fully integrated point of sale and business management software package that can help you run your liquor business. The program includes barcoding, point of sale, mobile POS, inventory control, customer management, financial reporting, maintenance, credit card processing, and more! Learn more about Windward here.

  • Zuora:

    Zuora for Salesforce helps out businesses that use subscription based services by catering to the company’s customer relationships and helping them to maintain those relationships. After your initial sign up, you will find that your sales rep will be able to support your company when it comes to upgrades, add-ons, renewals, and so much more! They do so by providing you with a 360-degree view of each of your customers as well as catering towards their individual needs depending on their amount of satisfaction and loyalty. Learn more about Zuora here.

Growing and Scaling Your Beer Club / Sales Business

It’s a Great Time to be in Liquor

The liquor sales industry has become a worldwide phenomenon that is only continuing to grow. DigiPay is excited to play a supporting role when it comes to the growth of liquor and sales merchants. Our extended family of elixir merchants, with vastly different models and product sets, are equally committed to optimal results, performance metrics and profitability. Some offer subscription programs; others provide mobile apps. All want affordable and easy high-risk payment card processing, which is our specialty.

Mike Ackerman

Co-Founder, CEO, DigiPay Solutions

Affiliate Marketing

What is affiliate marketing? Affiliate marketing is a partnership between merchants and affiliated individuals and companies that sell for them on the internet. Companies of all sizes, from leading global brands to start-up entrepreneurs, use the affiliate marketing model to great advantage, finding it an effective and lucrative ecommerce strategy. For example, thousands of Amazon.com affiliates promote products on their websites, redirecting buyers to Amazon’s site where they can check out and complete the sale. These sales are tracked by unique URLs that enable affiliates to earn commissions.

Creating an effective affiliate marketing plan begins with identifying trusted and reputable affiliates with extensive networks and followers, retail analysts have noted. These sources can help introduce products and services to markets outside a company’s traditional marketing footprint. Some examples might be a blogger with thousands of followers, or an e-zine with a strong vertical industry focus.

Because affiliate marketers are ideally an extension of a company’s brand and salesforce, it is crucial for organizations to create an affiliate program with clearly articulated terms and conditions, leaving nothing to chance. Some companies may outsource most of their promotional efforts to affiliate marketers. Others may supplement their traditional salesforce with a few affiliate partners.

Companies need to consider their primary objectives and corporate culture when creating an affiliate marketing program. Companies that manage more than one sales force, such as telemarketers and outside sales, have learned to structure sales programs to ensure that different teams are not competing against each other. This principle is equally relevant when working with affiliate marketers, who have proven to be most effective when they are not in direct competition with internal sales teams.

How Do I Create an Affiliate Marketing Plan for Liquor sales?

The first step in creating an effective affiliate marketing plan is to identify trusted and reputable affiliate partners with extensive networks and followers. A blogger with thousands of followers, or an e-zine in a vertical industry, can help introduce products and services to markets outside a company’s traditional marketing footprint.

Some companies outsource their promotional efforts to affiliate marketers; others supplement their traditional salesforce with a few affiliate partners. Regardless of what affiliate model a business owner may choose, it is critical to clearly articulate terms and conditions of service to affiliate marketers, to ensure their interests and practices are aligned with an organization’s culture and brand.

Aligning an affiliate marketing program with corporate interests, objectives and culture will help ensure success. Companies with more than one sales force, such as telemarketers and outside sales, have learned to structure sales programs to keep teams engaged and minimize interdepartmental conflicts. This principle is equally relevant when working with affiliate marketers, who have proven to be most effective when they are not directly competing with internal sales staff.

What are Five Essential Components of an Affiliate Marketing Plan?

Find an affiliate that knows the industry: Traditional affiliate marketing companies may face challenges unless they understand your customer demographics. This is why many beer sales and clubs provide commissions directly to affiliate marketers and bloggers whose followers include those who enjoy good beer and food.

Establish dedicated URL links: Dedicated URLs are directly tied to affiliate marketers’ commissions and need to directly link to landing pages and product codes. Companies can work with IT specialists to create accurate links, that enable them to track and promptly commission affiliate sale transactions.

Create a coupon program: Discount codes, one of the biggest growth hacks on the internet, show no sign of slowing down. Consumers continue to search for coupons and offers online. The right targeted offers help affiliate marketers turn shoppers into buyers.

Stay in touch with affiliate partners: Establishing deep ties with affiliate partners by notifying them in real-time of any changes in inventory, pricing models or promotions. No company can afford the embarrassment of having an affiliate learn of a discontinued item or clearance sale through a third party. As sales representatives on the front lines of selling a company’s products, affiliate marketers deserve real-time alerts to keep them agile and motivated.

KPIs, banners: Affiliate marketers, like any sales professionals, need to track their key performance indicators to assess their closing rates and stay motivated. A secure portal, where they can log in and view their activity, commission status and current promotions, will help them stay on track and reduce customer service calls.

How can Merchants Prevent Affiliate Fraud?

  • Know Your Affiliate (KYA):

    Before you approve a new affiliate, your first step in preventing fraud is to fully vet them. Ask them about their current brand relationships and how they promote their products. Their responses will help you evaluate if their values and culture are consistent with your company’s image and brand. Ask how the affiliate will drive traffic & sales to your offer. Check to see if the affiliate has behaved fraudulently in other programs

  • Review the Affiliate Site to See:

    • Is their website(s) compatible with your brand standards?
    • What visual impression are they creating?
    • Is the copy written in a way that will enhance or cheapen your brand?
    • Are the product descriptions accurate?
    • How well are they promoting their site?
    • How well do they integrate with social sharing options?

  • Enforce Affiliate T&C and keep them updated:

    To stay apace with ever-changing rules and regulations, it is necessary to periodically update your affiliate terms and conditions. Let your affiliates know how these updates will be broadcast and request confirmation. Be sure to include a due date for compliance to the new terms as well as an enforcement strategy.

  • What is the best way to enforce Affiliate Terms?

    Monitor for violations using technology and human intelligence. Consider contracting with third-party service providers that use technology to monitor websites, or build those capabilities in-house. Ideally, machine learning coupled with human intelligence is the best way to ensure compliance.

  • Can Enforcement Be Outsourced?

    Yes, DigiPay powered by Tranzlytics provides high-risk merchants with Pro Managed Services to ensure compliance and to detect and prevent fraud. Tranzlytics fraud detection includes daily screen shots that identify changes to a website. In addition to monitoring for key word violations, Tranzlytics can monitor affiliates and sub-affiliates traffic to ensure compliance.

What is the best way to spot affiliate fraud?

The adage, trust but verify, applies when monitoring affiliates. The following guidelines can help identify potential fraud:

  • • URLS’s with multiple redirects: It is important to know if the affiliate is using an approved site for your offer or unapproved sites to send fraudulent traffic.
  • • Look at referring URL’s for the original source of leads and sales. Check for trends to identify sub-affiliates associated with fraud and high chargeback ratios.
  • • Multiple transactions from a single IP address. This could indicate an affiliate or sub-affiliate is running stolen credit cards to place multiple orders.
  • • Use transaction history and trends to Investigate spikes in leads or sales.

What are common affiliate marketing words, expressions and phrases?

Affiliate software: Unique applications developed by companies to track and manage their affiliate marketing programs.

Affiliate link: This distinct URL, created for each affiliate marketer, enables companies to recognize, track and pay commissions to affiliates.

Affiliate ID: These unique IDs are sometimes used in addition to unique URLs on websites to identify affiliate marketers and ensure that they are compensated for sales.

Payment Mode: Pertains to the method of payment used by a consumer to complete an affiliate-referred sale. Most affiliate programs offer payment methods beyond traditional credit cards to appeal to global consumers.

Affiliate Manager/OPM: Affiliate managers, who specialize in all aspects of affiliate marketing, provide expert guidance on establishing and maintaining affiliate programs.

Commission percentage/amount: This refers to the percentage of each sale that companies provide in commissions to their affiliate marketers.

2-tier, or multi-tier, affiliate marketing: Like multi-level marketing schemes, this method rewards affiliate partners for referrals and recommendations, creating a second tier of sub-affiliates who can also earn sub-affiliate commissions.

Landing pages: This web page is used to promote a specific product and is frequently used to test a market’s receptivity to a product or service.

Custom affiliate income/account: Some companies reward top-producing affiliates by creating an elite sales program with higher-tiered commissions.

Link clocking: Link clocking shortens affiliate-identifying links, keeping them short and easy on the eyes.

Custom coupons: Custom coupon programs, directly linked to specific affiliates, help companies track and analyze affiliate sales.

A growing number of companies are working with DigiPay and TranZlytics to optimize and grow their affiliate programs. Contact us today for a no-obligation review.

Leading Affiliate Marketing Companies

1-877-Spirits: 1-877-Spirits offers a wide variety of alcoholic beverages including scotch, tequila, whiskey, moonshine, bourbon, and more. They are known for being one of the fastest growing gift delivery websites. It’s easy and free to join. In no time, you’ll be raking in the money from using their affiliate program.

The Liquor Cabinet: The Liquor Cabinet offers all the spirits you need. They have whiskey, bourbon, gin, rum, schnapps, scotch, and more! With their affiliate program, you can start building a solid income. They provide banner ads, text links, and other tools for your website!

Bootleg Liquor: If you’re located in Australia and looking for an affiliate liquor company to work with, then Bootleg Liquor is right for you! On their website, you can buy all sorts of spirits from the convenience of your own home!

Annual Events and Conferences

Annual conferences and events liquor professionals with networking and educational opportunities. Here are some examples:

Aug. 25-26, 2018: San Diego Spirit Festival San Diego, California. Looking to meet with other professionals in the industry as well as have the opportunity to show off your liquor in a competition? Then this event was made for you! The goal of this event Is to advance the spirit industry and to give professionals the opportunities to learn more about industry advancements, exposure, and product innovation, and education! Whether you’re a veteran or just starting out in the liquor industry, this is a great event to attend that is sure to be a great time for everyone involved!

Join the growing community of liquor sales companies that process with DigiPay Solutions

Thank you for taking the time to review this compendium to learn about available opportunities and solutions in the liquor sales industry. We look forward to welcoming you to our growing merchant community.

Our online application takes minutes to complete. Once approved, our relationship managers will help you personalize your business management portal and leverage our full complement of secure payment gateway and chargeback management tools. They’ll help provision your processing account, ecommerce website and POS systems in brick-and-mortar stores.

DigiPay will also make it easy for your customers to find you, by helping you create an engaging online and in-store presence and seamless customer checkout experience. Take your liquor business to the next level today at digipayinc.com.

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