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How contingency deduction recovery works

Contingency is the simplest promise in this business: we only get paid when you get paid. Here's exactly how the math works — and why it removes the risk of trying.

OverDeduct Deduction Recovery Team · Deduction recovery specialists working with emerging & mid-market CPG brands

Last reviewed: August 4, 2026

Educational content — not legal, tax, or accounting advice. Verify deadlines and fee details against your current distributor agreement before disputing.

The basic idea

Under a contingency model, you don't pay a subscription, a retainer, or a per-claim fee up front. Instead, our fee is a percentage of the deductions we actually recover for you. If nothing comes back, you owe nothing.

A worked example

Say we analyze your remittances and file disputes on the invalid lines:

The alternative — leaving it alone — keeps 100% of $0. Even after the fee, contingency turns unrecovered write-offs into net cash, without you spending a dollar or an hour up front.

Why it's genuinely no-risk

Contingency vs. the alternatives

A retainer is paid whether or not you recover anything. Software subscriptions charge monthly regardless of results and still leave you to do the disputing. Contingency is the only model where the cost is guaranteed to be smaller than the benefit — because it's a slice of the benefit itself. For brands that also want to work some disputes in-house, the self-serve tier pairs a cheap flat fee with the contingency option for the rest.

See what's recoverable — then decide

Upload a remittance free, see the disputable dollars, and only then choose whether to have us recover them on contingency.

Analyze a remittance for free

Frequently asked questions

What does contingency mean for deduction recovery?

Contingency means our fee is a percentage of the money we actually recover for you. If we recover $40,000 of invalid deductions and the rate is 25%, you keep $30,000 and we're paid $10,000 out of recovered funds. If we recover nothing, you owe nothing.

What is a typical contingency rate?

Contingency recovery services in this industry typically charge 20–30% of recovered dollars. The exact rate depends on your deduction mix, volume, and how much backup documentation is available. We confirm your rate after reviewing a sample remittance.

How is contingency different from a retainer?

A retainer is paid up front regardless of results. Contingency is paid only out of recovered dollars, after the fact. That flips the risk: with contingency, the recovery partner is only paid if they succeed, so incentives are aligned with getting your money back.

Are there any upfront costs?

No. The initial remittance analysis is free, and done-for-you recovery has no retainer or setup fee. You're only billed as a share of dollars recovered.

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