The best way to avoid credit card fraud is to use common sense, always verify with whom you are doing business. This is especially important if you do business over the internet.
Whenever you receive a credit card payment always ask for the security code that is located on the back of the card. If you have any doubt about the trustworthiness of the purchaser, do the following safety checks: ask for the billing address of the credit card, ask to see the purchaser's driver's license, and call your credit card merchant services. They can determine if the card has been reported stolen or lost.
This is especially important if you do most of your credit card transactions over the telephone or internet. For internet purchases, always be wary if the shipping and billing address are different and if the purchaser and the receiver are two different parties. Be extremely careful with any orders that originate from outside of the United States.
Out of country orders by individuals are so problematic that you may want to consider requiring payment for them by money order or certified check only. Credit Card fraud is rampant and your business could be one of the newest victims unless you are careful.