On the other hand, consumers have superpowers for chargebacks. If you call up your credit card company and complain you didn't receive a product or you got charged for something that you didn't order you get a refund at the merchants expense.
I have heard cases of merchants that delivered products personally & received signatures getting chargebacks. If the transaction happened over the internet then police, CC companies & banks guaranteed to side with the customer.
It is at the point where it just stops a lot of commerce dead. For many companies fraud is far more expensive then credit card charges. Ironically, this is more the case in commodity industries where margins are pretty low anyway.
Just try ordering some easily resalable product (EG a phone) from an overseas merchant. I know one merchant who throws away any order that come in over the net & retakes the order over the phone because (a) it throws off a lot of the fraudsters & (b) phone-credit fraud goes to a less crowded desk then internet-credit fraud. He is willing to work hard & throw away 1/4 of probably legitimate orders to verify authorisation. There is no way for them to accept money in a way that is guaranteed to stay in their account.
Fraudulent merchants may have a lot of power in this situation but honest merchants are screwed.
If your bank 2.0 was real, you would have the support of most small-medium online stores of you had a logical trade-off in place: Consumers must verify payment / Payments are verified, they can't claim this transaction is "unauthorised".
I have heard cases of merchants that delivered products personally & received signatures getting chargebacks. If the transaction happened over the internet then police, CC companies & banks guaranteed to side with the customer.
It is at the point where it just stops a lot of commerce dead. For many companies fraud is far more expensive then credit card charges. Ironically, this is more the case in commodity industries where margins are pretty low anyway.
Just try ordering some easily resalable product (EG a phone) from an overseas merchant. I know one merchant who throws away any order that come in over the net & retakes the order over the phone because (a) it throws off a lot of the fraudsters & (b) phone-credit fraud goes to a less crowded desk then internet-credit fraud. He is willing to work hard & throw away 1/4 of probably legitimate orders to verify authorisation. There is no way for them to accept money in a way that is guaranteed to stay in their account.
Fraudulent merchants may have a lot of power in this situation but honest merchants are screwed.
If your bank 2.0 was real, you would have the support of most small-medium online stores of you had a logical trade-off in place: Consumers must verify payment / Payments are verified, they can't claim this transaction is "unauthorised".