Here's a response I got. Makes sense to me.
STEVE  GOODSON 
 <http://www.saxgourmet.com> www.saxgourmet.com 
STRICTLY by appointment only 
Tues - Thurs 10:00AM - 3:00PM 
  
Steve uses and endorses UNISON saxophones; 
RUNYON mouthpieces; MASTERPIECE necks; 
PHAT reeds; and MUSIC MEDIC repair kits. 
  steve,
Very sorry to hear of your loss. While I don't contend with credit card
transactions in my business, these tales of woe have crossed my desk as
a lawyer. Moreover, as a musician and participant in Ebay auctions, I
have purchased instruments from overseas brokers and hate to see this
community jeopardized by the growing criminal element.
Do not rely upon credit card processors solely in conducting foreign
transactions. The key is to get as many specifics from the buyer as you
can in advance of the sale: the issuing bank's name and phone number
(then call them to verify account information); the credit card's 3 or 4
digit security code; a physical mailing address for the buyer (the legal
definition of one's business or residence address allowing service of
process (summons and complaint), should a civil or criminal actionable
claim present itself--no P.O. boxes); confirmation from calling the bank
that the shipping and billing address(es) are accurate and correspond to
the registered account name; and home and office telephone numbers for
the buyer (verify the phone numbers by placing calls; call up his place
of business and confirm that he is an employee--another way to ensure
for a point of contact for a process server should a lawsuit or criminal
report need to be filed). Additionally, always use parcel tracking and
confirmation of receipt by signature services, so that the seller can
establish proof of shipment.
Precautionary steps also carry with them a monetary cost--overseas phone
calls, "time" spent away from other work, et cetera--and must be weighed
against the dollar amount of the transaction and justified, accordingly.
Unfortunately, as you know, crooks can be found on both ends of
electronic transactions. Buyers are often left 'holding the bag,' as
well, so many buyers feel uncomfortable with wire transfers
(particularly overseas), unless there is a pre-existing relationship
with the seller, because they have little recourse if they do not
receive the purchased goods or they receive the merchandise, but the
merchandise is 'not as described.'
For overseas transactions involving larger dollar amounts--your
transaction would certainly fall within this category--my experience has
been that escrow services offer the most protection. The fee for the
escrow service becomes part of the negotiation for purchase-and-sale of
the goods.
PayPal sellers that are not qualified under PayPal's "Seller Protection
Policy" are not protected from a buyer's subsequent reversal of charges.
PayPal's "Seller Protection Policy" indemnifies the seller from reversal
liability BUT DOES NOT extend to foreign sales. Please refer to the
following links for more detail on PayPal's policy:
http://www.paypal.com/cgi-bin/webscr?cmd=p/gen/ua/policy_payments-outsid
e and
http://www.paypal.com/cgi-bin/webscr?cmd=p/gen/ua/policy_spp-outside
Regards,
Jason
Jason M. Kays
New Media Legal Services Corp.
The Kuhn Building
210 Polk Street, Suite 4B
Port Townsend, WA 98368
Voice: 360.385.7770
Facsimile: 360.385.7797
Email: kays@...
Web Site: www.iplawfirm.org 
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