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The problem with only sending small amounts of traffic is that your CB ratio can be inaccurate, just like a signup ratio.
You could send 900 hits with no signups, then get 3 signups in the next 100... same with a CB. You may send 50 more sales before your next chargeback, but right now it looks bad. They're just protecting themselves, although with small figures it does sound a bit pigheaded of them.
How much do they say you owe them?
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