I looked at the site, and it's not clear how they avoid being ripped off with charge-backs.
Any idea how they actually control/avoid fraud?
It looks like they charge a huge markup. For example they are selling 0.032 BTC for $25.00 that works out to be $781.25/BTC. Bitstamp is trading at $657.21/BTC right now, so as long as they are scammed out of less then 18% of their orders they will be fine. That with the fact that they only sell relatively small amounts they are likely not a huge target for scammers.