If stuff goes wrong
As soon as you discover, that somebody ran out of your web shop without payment, you have to be fast. Of course you will not literally see someone run out of your store, but you have to look out for notices of your PSP in your inbox, that tell you about a charge back.
Check list for charge backs:

1) Pull up the transaction in question from your records
2) Copy/paste all the information you have in a file (not a "must", but it helps me to start a new file: I usually use a word document and all information I get and all my notes goes in there.)
3) Send the customer an email. Inform him/her that there is a problem with the order. Ask, what his/her problem is. However: don't put too much effort in this mail. The main reason for you is to see, if the email address is still valid.
4) Save old emails that your get from this customer. Make sure, you save them WITH the COMPLETE email headers - or at least make sure you don't delete them.
5) Try to locate a phone number (see "looking up references") and try to call the person who did the transaction. Sometimes it really IS a misunderstanding.
6) Try to gather as much information from the different switchboards and white pages as you can. Copy all of it in your file.
If you can't get enough information, or you can't reach the person, don't be frustrated. This is unfortunately normal.
7) Look up the number of the police in the country that the fraudster is in. It is faster to deal with the police of the country that the fraudster is in. Filing a report at your local police might be an idea too, but it will not get you any results fast. And fast results are what you need.

Here is an example of one of my own deals, that went bad (and unfortunately stayed that way):

I received an order from Canada for two tattoo machines. The payment was made via PayPal, but I did not see one of the warning signs: The customer wanted a delivery as fast as possible…

After I got the charge back notification from PayPal, I tried to find out as much as possible about that name and address, but I got almost nothing that could help, except I could confirm that the address existed.
I looked up the local police station in the village that the goods were sent to, and after I explained about three times to different people what happened, I was put through to a pretty young "Mounty" (apparently everybody figured it had to do with the internet, and he was the one that knew something about the internet), who listened to my story once again and decided to open a file and make a report about it.
I was asked to supply pictures of the goods I sent (which was not hard, because I could use the ones I use for the shop on my page). The pictures could be sent by email, so the report was done in no time.
It looks like they went pretty far in investigating this, even going to the house and looking for the goods. I was informed about the progress at all times via email, and I have to say that the Royal Canadian Mounted Police and especially the Constable that dealt with the case impressed me a lot.
None of the investigation would have happened (for sure not that fast) had I involved the local police in my country.
In the end the goods could not be recovered anyway, but the whole thing taught me a few things:

- Contact the police in the country/region that the fraudster lives in.
- Acknowledge and warn in the first phone call you make to the police, that this might be an unusual way to file a report, but that it is really the only way that might be successful.
- Have the story ready when you call, and be prepared to tell it over and over
- Ask for email addresses, offer to send pictures and your story via email or fax
- Ask if they have a department for internet fraud
- Be prepared to explain in simple terms, what a PSP is (in case you use one)
- Make sure the police have all needed information on whom to contact when it comes to payments. (Supplying the URL and customer contact details of your PSP or card processing company is for sure a good idea)
- If you are not successful with the local police station, try the next bigger city in the area.