Lead Replacement Policy
A lead replacement policy is the contractual provision in MCA lead purchase agreements specifying which lead defects qualify for replacement at no cost — typically covering disconnected phones, EIN mismatches, out-of-business merchants, and TCPA opt-outs received within a defined return window.
Why This Matters
Replacement policies materially affect realized lead cost. Strong policies allow returns for: invalid phone numbers (disconnected, wrong number), EIN/business name mismatches, merchants in restricted industries, merchants below revenue thresholds, TCPA opt-outs at first contact, and out-of-business merchants. Return windows typically run 7-14 days. Replacement allowance percentages (the maximum percentage of records returnable) typically run 10-25%. Vendors with weak return policies may have lower nominal lead prices but higher effective costs after factoring waste rates.
Frequently Asked Questions
Frequently Asked Questions
What replacement allowance is standard for MCA leads?
10-15% replacement allowance is typical for fresh exclusive leads. 5-10% for shared inventory. 0-5% for aged inventory (limited replacement on already-discounted records). Higher tier vendors offer more generous policies as quality differentiator.
What grounds qualify for MCA lead replacement?
Invalid phone (disconnected, wrong number, fax line), EIN/business mismatch, restricted industry, below revenue threshold (verified via bank statement at qualification), TCPA opt-out at first contact, and confirmed out-of-business status. Vendor-specific policies vary.