How do you detect fraudulent credit card orders? You just hold the funds for a few days until it can be confirmed?
I do not know the merchant processor's exact methods, and they would be unlikely to share that information in order to make it tougher for fraudsters to defeat their fraud detection. Holding the orders in "quarantine" is just an extra step we are taking, until we feel comfortable with the processor's fraud detection. Their system is very highly rated, so our efforts just take it one extra step. If we speak with someone paying by credit card and subsequently feel comfortable with them, then we will release the order early.
Can you disclose who your processor is? I've had similar problems before and the charge backs nearly ruined me. I got no sympathy nor help from my credit card processor.