I think the biggest problem is "chargeback" . They make it 1% as "GOOD" which I don't think many of us can hit this? If you make 100 sales, due to wadever reason, u got 2 chargebacks, then your account will be RED. You need to pump in another 100 sales without "chargeback" then you are safe.. The best product i have ever promoted's refund rate is below 5% but chargeback still around 2%. Clickbank claims that "Overall, sales processed by ClickBank traditionally have a chargeback rate of less than 1%, which is quite low for an internet retailer." Seriously, I don't really believe in this. Does anyone of you who make average 5 sales or above per day and your chargeback rate is below 1%? I guess hard... Correct me if i am wrong. Thx.
The case of chargeback is very rare. In fact, refund to chargeback ratio is very non-uniform. Though some people tend to get chargeback occasionally.
My account is also labeled red and I have not accepted it because what the information tells me is that I have more refunds and chargebacks that are not acceptable as a vendor. My product never sold more than 4 pcs and how can they take data from 4 sales? I wrote them but no response. This is NOT fair. At the end of the day they will loose if they do not restructure their rules.
It looks like sales made and refund % rate will tend to vary each day and depending on that risk tier might vary each day. For example, If on a certain date, the refund rate is 10% (10 sales and 1 refunds) and the person is on blue tier. On the next date the person gets another refund, it will be 2 refunds out of 11 sales, that means refund rate now is 18% so he moves to down to the yellow tiers. Now to get back again to the blue tier, the person would have to make more sales (without any refund) so that the refund % again come to 10%. That means he will now have to make 9 more sales without any refund so that it is 20 sales and 2 refunds, that means 10% refund rate. So when he makes 9 more sales without any refund he will again move up to the blue tier. Does This risk tier system work something like this??? I am not sure.