Loaded Commerce Community

Hi,
My site is running an affiliate program which pay webmasters 30% on each referral. Before I launch this however I need to understand how other webmasters/store owners are dealing with instances of fraud/chargebacks/refunds on affiliate driven sales.
This could potentially hurt my business severely, particularly the fraud,

I was thinking of setting up an accounting policy similar to that of ClickBanks

At present I have an accounting policy which agrees to pay affiliates monthly via paypal for the previous months earnings. Is this the best option? or is there a more secure way of doing this?

I would be interested in hearing from other members who can share their experiences with us on this.