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> In other words, both buyer and seller are incurring a cost due to the existence of chargebacks The cost isn't due to chargebacks. It is due to the risk of f

> In other words, both buyer and seller are incurring a cost due to the existence of chargebacks The cost isn't due to chargebacks. It is due to the risk of fraud. Criminal behaviour like fraud extracts a toll on society at large and we all get to pay. The overhead added from chargebacks make both the buyer and seller internalize the potential risk of fraud. Without chargebacks, yeah prices might be slightly lower but society at large would get to foot the bill for fraud.

baddox 8y ago
It could still be optional for parties who trust each other. Chargebacks is not the only way to establish trust in a transaction.
- gerikson 8y ago
  Loyalty programs fill that role.
  - baddox 8y ago
    Loyalty programs, reputation systems, escrow, etc. Nothing will ever be perfect, but the status quo of chargebacks is also not perfect.