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Agreed, these (usually) foreign webmasters just rack up fake credit cards in hopes of getting paid. Usually by the time it gets found out, the check is already cleared and the money is gone. So zooted had to pay for it.
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My affiliate program got stung by an asshole from Bulgaria. Fortunately, I only lost $50.00 to HIM before catching it. However, the chargebacks are still ROLLING in. I have seriously considered allowing only US and Canadian webmasters to participate in my affiliate program.