I know this is not only happened to me, and most of you might has already experienced it before. I just wondering, what precaution did you take to prevent or lessen the risk of chargebacks. DO you manually accepting new orders?

I was recently received another fraud order which was paid and went through maxmind fraudcheck. Later I got reversal in paypal and in the end, paypal decide to honor the reversal and i have to pay the $3 reversal fee.

Anyone care to share their solution?

Yeah, I always manually approve accounts after I have already received payment. If there is anything suspicious at all, I contact the new client just to verify things. Paying those pesky reversal fees got old quick :P

Yeh we had a $4 fee the other night, scored .2 on maxmind.
10min after the order maxmind emailed saying the ip is dodgy.
5 min after that they did a charge back.
We had no even looked at the order yet, come on give us a chance to check and pay pal refund the payment.

Yes, we approve all the orders manually, takes a bit more time, but I prefer that instead of the $50 of chargeback fees :)

We approve all orders manually. Customers that pay by credit card will have our company name and telephone number on their credit card statement, in the very rare case of fraud the person usually gets in touch with us first which enables us to handle the issue quickly & without fees.

Yes, I accept ALL orders manually and it reduced the chargebacks and fraud orders by 100% :D Simply because nothing can beat your brains. You just know and "feel" when you are dealing with a fraud order.

Most fraud order will be of extremely high value since the frauder would like to know the max charge of the card. If you get orders worth above $100, be very cautious.

Using MaxMind will help you tremendously as well.