How does your fraud tracking work?
We use a combination of external fraud scoring and internal historical based scoring. There are countless order characteristics that are factored in, and most taken on their own will not prevent an order from completing. Email address and whether it is a free account is one factor that goes into scoring, as is IP address, location, distance from billing address location, country of origination, and about 10 other factors which all go into developing the fraud score. Those which are above a certain threshold fail. It is a pretty low % at this point which fail fraud checks, and we experience a very low rate of chargeback incidents, so the system has worked quite successfully for a long time.