What is the best way to reduce fraud? 2checkout just cancelled our account due to "excessive fradulent activity". We seem to run into this wherever we have a merchant account.

Is voice verification the only way? It seems like quite a hassle to have to phone every customer, but if it is the only way, I will do it.

We use worldpay.com and their "future pay" setup.
when a new account signs up, the credit card is not tryed till the next day. During the period of time from the signup to the next day we check the details giving. We cross reference the IP address/hostname to the address giving for billing and we do not allow people to use yahoo/hotmail/etc address' when signing up.

This has seemed to reduce it as if you find someone you suspect, we email them, ask why are you singing up from Au when the billing is in the Uk ? If the answer is not good enough or there is no answer, we cancel the card going through and don't setup the account.

Just be warey of yearly payments on big plans with free domains and such, or domain registartion's with hosting accounts.

Thats about the only advise i have on them, still this does not combat them 100% i don't think anything will but it does stop a few.

Craig