I don't doubt that your statements are true. However, services like this do stop a lot of fraud. If you do not have some basic filtering in place, it is that mu

I don't doubt that your statements are true. However, services like this do stop a lot of fraud. If you do not have some basic filtering in place, it is that much easier for the less sophisticated fraudster. The particulars of your business will definitely affect the ability to stop some types of fraud. However if you are shipping a product to your customer you can make fraud pretty hard. It will depend largely on the product you are selling. You have to increase the effort required to successfully get a product shipped so that it exceeds the profit that can be made from it. In our case we often do something similar to this: --- No order is rejected outright - but various combinations of criteria cause a manual review of the order. This prevents customers getting error messages and also avoids having fraudsters receive quick feedback. Shipping addresses known to be forwarding mail centers or mailboxes are flagged. If the billing address does not match the shipping address, and the IP is flagged as proxy/vpn/datacenter, etc. or is too far from the billing/shipping address, it is flagged. This allows most people to ship to their office even though the credit card is at their home address, etc. If the billing address is to far from the shipping address it is flagged. Fraudster are limited to using cards that have billing addresses in a close range to where they can receive goods. The machine learning system gives a score and various thresholds of that score are used to trigger in combination with other factors. Flagged items are manually reviewed. Sometimes customers are called to do human verification. --- Some still get through, but I just implemented one a few weeks ago and saw 99% reduction in fraud orders, and a 90% reduction in man-hours for reviewing orders. In most cases, the fraudsters will just see that it is no longer worth their time and move on to easier targets. Obviously this particular store had a serious problem due to a high level of automation and an easily resalable product. The margin of the product and relatively low shipping costs allowed the fraud to get to pretty high levels before they really focused on it.