Ah great topic John I can give you some first hand knowledge. As you know I am living overseas and so my mailing, billing address is the USA but my IP and physical address is Croatia.
Even though I have an account with them to collect money the first time I placed and order of course they declined it so I had to call, the second time I was flagged and it went through, it is hit or miss with me, sometime I have to call sometimes I don't, I also believe the purchase price may make a difference but haven't confirmed that.
What I have confirmed is that id information doesn't jive they are all flagged, if they can contact the person in question it will go through. If they can't make contact it will not go through. So even if it is declined for fraud, that isn't always the case, and an occasional order will go through that really is fraud. At least they do have some screening in place and that makes a difference to my choice of using them.
I am happy with their services and we even laugh when I call them that I can take money but I can't spend any.