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Yes, but most fraud is hitting merchants via charge back and they don't like it. Bitcoin reduces merchant fraud, and that's the point; it's cash, when you buy

Yes, but most fraud is hitting merchants via charge back and they don't like it. Bitcoin reduces merchant fraud, and that's the point; it's cash, when you buy something with cash you don't get to take it back after you get home. Cash is always more risky for the customer, but you can build up escrow systems on top of said cash system to handle customer fraud issues. Bitcoin solves the merchant fraud problem by giving them an option besides the fraud ridden and unsafe credit card system and the evil charge back that hurts so bad. It's hard to sell things online when you have to deal with card fraud and charge backs. This notion that "customers" must have fraud protection is false; people use cash every day without any fraud protection. The credit card companies have sold people on the idea of fraud protection because it's necessary in a system when you give your private key (card number) to every merchant you deal with and your private key is often stolen. Credit card protection is a solution to a badly designed pull based credit card system; it solves a self created problem. A cash based system like bitcoin does not require fraud protection, it's cash.

pjc50 11y ago
it's cash, when you buy something with cash you don't get to take it back after you get home Well, sometimes you do, consumer protection law guarantees that if it's defective or not as described. It's hard to sell things online when you have to deal with card fraud and charge backs How widespread is this, quantitively? people use cash every day without any fraud protection Yes - in face to face transactions where you can inspect beforehand and complain afterwards. And people are advised not to send cash through the mail because - guess what - it'll get stolen. The credit card and a bunch of related non-cash systems like traveller's cheques were invented because travelling with or doing large cash transactions is a risky hassle.
- gnaritas 11y ago
  > How widespread is this, quantitively? Anecdotelly, I work in online retail, fraud is always a problem and we turn away business to avoid iff'y situations because of it and get attacked by streaks of stolen cards from time to time. Fraud is a real problem for merchants; you can't fight a charge back, you're out the money and the good and you just have to eat it and say thank you while getting killed on credit card fees. Credit cards suck for merchants, we accept them because we must, everyone prefers cash.

pjc50 11y ago

it's cash, when you buy something with cash you don't get to take it back after you get home Well, sometimes you do, consumer protection law guarantees that if it's defective or not as described. It's hard to sell things online when you have to deal with card fraud and charge backs How widespread is this, quantitively? people use cash every day without any fraud protection Yes - in face to face transactions where you can inspect beforehand and complain afterwards. And people are advised not to send cash through the mail because - guess what - it'll get stolen. The credit card and a bunch of related non-cash systems like traveller's cheques were invented because travelling with or doing large cash transactions is a risky hassle.

gnaritas 11y ago
> How widespread is this, quantitively? Anecdotelly, I work in online retail, fraud is always a problem and we turn away business to avoid iff'y situations because of it and get attacked by streaks of stolen cards from time to time. Fraud is a real problem for merchants; you can't fight a charge back, you're out the money and the good and you just have to eat it and say thank you while getting killed on credit card fees. Credit cards suck for merchants, we accept them because we must, everyone prefers cash.