9/26/2023 0 Comments Im in dangerIf you provide your contact with Order IDs for bad transactions, they will be able to see who generated them. This will mean that you can remove any users on the platform who are delivering bad transactions. Watch for chargebacks like.a.hawk! Also, make sure that you have a reliable contact at the cashback site. If you do decide to work with cashback sites, confine partnerships to a very small number of key players. They do though pose a level of risk that's too much for some merchants. Cashback sites can deliver incremental sales. This is the proverbial million-dollar question. None of them though can say that fraud is not possible through their platforms. Since the Fatwallet fraud, all well-known cashback sites have improved fraud detection systems. While the fraud was committed over a decade ago, it should serve as a valuable lesson. See the section ' United States of America v. If you want to read more on the fraud, Ben Edelman has a great write-up on this page. Of which the Chius received more than $650K. These purchases generated $1.4M in commissions and fees. According to court documents, the brothers made $23 Million in invalid purchases. This generated commissions to FatWallet who then paid the brothers. This glitch treated some unprocessed orders as successful affiliate transactions. The brothers discovered that they could exploit a glitch in Nordstrom's systems. Two brothers Allen and Andrew Chiu were behind the fraud. The affiliate network used was Linkshare. (Fatwallet ceased operations on October 9, 2017). One of the most publicized victims of cashback fraud was Nordstrom through Fatwallet. If you don't think that affiliate fraud can happen to you, think again. Always keep an eye out for emerging patterns. Judge all complaints and negative reviews with care. The affiliate is likely using deceptive marketing tactics or incentives to inflate sales. If you get similar customer complaints from the same traffic source, this is a warning sign. (This generally confirms that fraud has taken place).ĥ. If an affiliate stops communication after you confront them about fraud this is a huge red flag. Be cautious with affiliates who either ignore your emails or are slow to respond when you reach out to them. Incentivizing buyers or account takeover to get a sale are two.Ĥ. There are many types of fraud that could be in play here. This is especially the case if the affiliate is new to your program. If you have an affiliate pushing only your highest value products, this may be a warning sign. But, you start seeing lots of sales from Vietnam or Romania.ģ. An example might be that you generally get the bulk of your sales from North America. If you see an uptick in traffic and sales from a part of the world outside your usual audience, it might be a warning sign. They charge exorbitant rates for their services though.Ģ. There are payment processors that specialize in high-risk accounts. In the vast majority of cases, they will flat-out reject any merchant on it. Mastercard’s partners must consult the list before onboarding a new merchant. While you won't lose any currently active merchant accounts in good standing, you won’t be able to open any new ones. Getting placed on the MATCH list can have serious repercussions on merchants. Mastercard created this list to help banks identify high-risk merchants. MATCH is the rebranded overhaul of an older list, the Terminated Merchant File (TMF). (MATCH stands for Member Alert to Control High-Risk Merchants). This can be the first step to ending up on your card network's MATCH list. Payment processors, like Mastercard, can qualify you as a 'Chargeback Monitored Merchant'. If your chargeback rate exceeds 1% you get into dangerous territory. The chargebacks will usually come 45-60 days after the transaction date. So how will you know if traffic coming from your cashback partners is bad? Here are five indicators that you might have a problem.ġ. The text is usually something like "(chuckles) I'm in danger!"Īre you partnering with cashback sites through your affiliate program? If so, this meme might well fit your situation. If you like scrolling through memes, you'll have seen the image of Ralph Wiggum sitting on the back of a bus.
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