As someone that's sold services and webapp subscriptions online for about 8 years now, I've seen a lot of payment fraud, mostly in the form of signing up with stolen credit card numbers. I've managed to manage the fraud with risk scoring systems, automated calls to customers during checkout, etc. so that I stay under a 1% chargeback rate.
What I'm wondering is what other startups do about the payment fraud they detect. Do you ever report it to the police? Your police, or if you have a pretty good idea of the identity of a scammer, to their local police? To the FBI? What about Visa and MasterCard themselves? Do any of them actually care?
I think you should report this to the actual person if it's possible if not then report it to the bank issuing the card if you know what bank it is. Their security departments would be very interested in this. If not then to Visa or MasterCard.
One thing that I would keep is the record of this transaction as this might be needed for evidence later.
Actually I've just checked Visa's website and found this link