I am a merchant for downloadable products, and I have a affiliate program. Unfortunately recently a affiliate signed up who has attratced several orders that ended up being chargebacks in my Paypal account and Google Checkout account, but the chargebacks don't show up until after I pay the affiliate. So I am losing money by paying this affiliate because customers are claiming they never ordered the product, and so I have to return their money. Odd thing is that not every order from this affiliate is a chargeback. So I don't know if I should delete the affiliate from my system or not? However, they never answer my emails as I am trying to figure out why all the chargebacks. Anyone have experience with chargebacks from an affiliate? Is it best to delete them from the affiliate program?
Depends on the percentage of good leads they bring to your organisation. When do the chargebacks start rolling in? And when do you pay your affiliates their commission? Are the chargebacks from a specific country/ region? Do you have a validation period policy for affiliate sales as a merchant?
The affiliate has produced about 8 sales, and 5 have been chargebacks so far. And the chargebacks are mostly from people who have hushmail email accounts (but different names and different ip's). I pay affiliates once a month. For example, if an affiliate makes sales in March, I pay them in April. But I am learning I should wait until the end of April to pay them because all the chargebacks from March are showing up in April so far and I paid affiliates the first weke in April as I always do, but there has never been chargebacks until this one affiliate joined and started promoting my products. It also just so happens that when the affiliate in question signed up I started getting Google Checkout High Risk orders which are cancelled right away. There has been over a dozen of these orders in March. And most of the orders have a different name, but hushmail email accounts. So I am wondering if it is fraud and someone is creating multiple husmail email accounts under a different name for each one and trying to order my products. Normally it is rare for me to get refund requests and never get chargebacks.