When consumers make a purchase at a store they have to give their credit card to a real person face-to-face. Then if the salesperson is unsure they can make due diligence checks such as asking for further identification. With an online business unfortunately you do not have that luxury. You need to collect enough information to be 100% sure that the person using that card is the cardholder.
With an offline business 1 in 100 purchases is an attempt of fraud. This same figure with internet purchases is estimated at every 10 in 100. This figure is rising as fraudsters find new ways to implement their illegal techniques.
If you want to know about the credit card fraud prevention, then you can browse the web.
A common way to detect fraud is the address verification system. This requires the customer to enter their name and address exactly as it appears on their bill. If it does not match the data held by the credit card company you as the vendor can choose to reject the order or ask for additional information.
The address verification system does help prevent fraud but it is in effect a double-edged sword as while it can protect the customer it often annoys them as well. Not all customers have access to their data such as passwords for their credit card which is now commonly used online to prevent fraud or pins. Most merchants online will hold you responsible for submitting fraudulent information and have the right to charge you a fee.
You can purchase software to help verify any credit card transactions. This will check the customer's email address, the type of order, and the time of day the order was placed. Criminals often order late at night and test the card in their possession with 'test' orders to try and keep the activities under the radar.