I have expierenced, on the downside, 4 chargebacks this year. I HIGHLY suggest NO dropshipments. My mistake there was I allowed this, thinking legaly a signature makes the reciever liable, nope. I now only ship to the billing address and also reserve the right to refund if AVS (address verification) does not match.
Brian, I'm not all that familiar with cc transactions, but I think the term the companies use is "card not present" --in which case the merchant assumes the liability for chargebacks. Since all internet transactions fall under that heading, merchants should check it out carefully.