Based on my assumption, ChatGPT likely knows your IP address and deduces your location using IP geolocation technology, similar to ip2location.io. However, it probably does not use this information when querying its fine-tuned model. After it receives results from the model, it may reformat the response using your local context, which could include names of places.
Merchants can use FraudLabs Pro to screen orders and assess their fraud risk. To combat friendly fraud, merchants can blacklist customers to block them from making future purchases.
This is a very sad incident of carding attempts. You can sign up for FraudLabs Pro service and they have velocity check to prevent carding if it is from similiar browsers, IP or email addresses.
IP2Location.io offers a free tier of 50,000 queries monthly to get started with. This allows users to explore its capabilities and compares with othe providers.