[patio11]

That isn't true -- you can run a variety of heuristics to catch N% of fraud (and X% of legitimate payments) prior to submitting them to the bank, getting them accepted, and then having your merchant account ganked for high chargeback rates.

For example, an annoying system which will decrease chargebacks is "If your IP address goes to a country other than your billing address, shoot first and ask questions later." It bites me all the time, but there are sensible business reasons for it.