I've lost 2 merchant accounts in the past due to a high chargeback rate involved with selling web hosting online. Most chargebacks are a result of orders from

I've lost 2 merchant accounts in the past due to a high chargeback rate involved with selling web hosting online. Most chargebacks are a result of orders from people with stolen credit cards, usually from international IPs. To mitigate this, I ended up using: 1. A service called MaxMind, which includes automated phone verification (e.g., ensuring the person owns a phone number in the a area code matching the credit card zip code). 2. Using payment providers like PayPal or 2CO since they have their own built-in fraud prevention systems. Of course, this does not prevent chargebacks for non-fraudulent reasons (e.g., unsatisfied customers). For large orders, you may need to get the customer's signature on a credit card authorization form, to enable you to win the chargebacks if they occur.