For the best protection against chargebacks and fraud, manually inspect each order before processing. This means that digital goods cannot be delivered instantly but also means improved protection and security for you business. There should be no problem as long as there is notice for consumers of the pending status of the transaction. Automated processing can be more time-efficient and cost-effective than manual processing. Below is a quick overview of the payment process for online transactions and some suggestions on steps you can take to prevent fraud.

1. Credit card details are submitted to payment gateway which checks that the credit card is valid, and performs AVS and/or Card Code Verification checks.

2. If the order passes AVS and/or Card Code checks, then accept the order for further processing - don't capture the credit card charge yet, rather select the "Authorization/Pending Capture" mode.

3. Run details of the order through MaxMind's minFraud service. (This can be done manually or automated through APIs)

4. Manual inspection
   Manually inspect the order by examining the risk score and the other outputted details. If the order looks legitimate, process the order and capture the credit card charge. Otherwise keep the charge in "Authorization/Pending Capture" mode and ask the client to provide additional identifying information. Manual inspection provides a higher level of security, but results in a delay for the customer receiving the digital goods.

   OR

   Automated inspection
   If minFraud returns a risk score of, say, 2.5 or higher, pass the order onto MaxMind's automated Telephone Verification service. The customer is directed to input a telephone number that he has immediate access to. Once he enters the number, a robotic call will be generated to verify his order by giving him a pin code that he needs to complete the order. In an event of a chargeback, the phone number can be used to trace the fraudster.