Here are some ways you can greatly reduce instances of chargebacks and fraud, even potentially eliminate risk altogether:

#10 Interactive Voice Response (IVR) Terminals

IVR Terminals, developed by VoiceStamps http://www.voicestamps.com, are a relatively new solution that greatly reduces chargebacks and fraud by collecting a "voice stamp" or voice authorization and verification from customer before merchant ships order. The voice recorded order verification is then automatically e-mailed to merchant for filing in event customer tries to dispute charge on their account.

#9 Collect CVC2 and CVV2 Verification Numbers

This tactic alone can not only reduce instances of chargebacks by 26%, according to Visa, but also reduce any pass-through fees that may be charged when a credit card order is conducted. On back of MasterCard, most Visa and Discover credit cards is a 3-digit security code located right after your credit card number. Requiring customers to give 3-digit code acts as an additional verification measure.

American Express cards also have a similar security code that is located on front of card right above cardholder's account number and is usually 4-digits long. Most online payment processors support entering security codes when processing credit card orders. Check with your payment gateway provider (i.e. Verisign, Authorize.Net, ECHO Inc., etc) for details.

#8 Use Address Verification System (AVS)

AVS checks to ensure address entered on order form matches address to where cardholder's billing statements are mailed to. People ordering products and/or services using a stolen card number will never use real cardholder's billing address, so this is your chance to stop order before it's too late. AVS only works with orders conducted in US. Failure to use AVS when processing credit card transactions will always result in paying higher credit card processing fees.

#7 Scrutinize orders from developing foreign countries

A large percentage of fraudulent Internet purchases are made from Indonesia, Russia, and other eastern block or developing countries. Accept orders from such countries at your own risk until a worldwide AVS system is developed.

If you believe in product you're selling, then show it. Stand behind it all way.

And provide a long-term guarantee! What's long-term? I think a guarantee should be at least for 3-6 months. A year would be even better! Why?

Well, have you ever bought an ebook, and downloaded it on your computer, then thought, "I'll read that later, I've got to do so-and-so right now."? Then 2 or 3 months later, you re-discover it? I certainly have!

I don't mean to, but sometimes I buy several books at once or just get too plain busy, and then don't read something I was desperate to own!