[mansa10]

I've never understood this insurance defense of high payment card fees (percentages instead of flat fees). If it is a truly valuable insurance for the shoppers, why is it not opt-in?

My anecdotal experience from EU is that no-one even knows chargebacks exists or how it works and if this was turned into a transparent honest insurance, prompted via a question on the payment terminal/online checkout such as "Do you want to pay 1-3% to insure this purchase?" the vast majority of people would click no on the vast majority of purchases because there is already inherent trust involved between the merchant and the shopper.

Now add the chargeback pains that merchants go through for credit card frauds and you have what appears to be a sickly system where both shoppers and merchants lose, with the only winners being visa/mastercard & the acquiring and issuing banks they cooperate with.

If I buy a burger from a restaurant and its bad, i tell all my friends and i don't go back. I don't need insurance.

If I buy a service on steam, i already trust valve fully for those smaller amount sizes, I don't need insurance.

My gut feeling is that >99,9% of purchases made via payment cards are not relevant to insure meaning following the simpler risk model of cash for those would work just fine.

[gethly]

Chargebacks are indeed quite detrimental to merchants as they are the ones paying it. And if you have bad customers(maybe competition is trying to put you out of the business), you might get deep into red quite fast. Usually it is anywhere between 20 and 50 euros, which is crazy when it is just a reverse of the bank transfer which is the tech in the background. Like if you run a small online store and you sell 10€ items where you make a 5€ pre-tax profit, having a 20€ chargeback on such sale can be really dangerous.

[maccard]

> Usually it is anywhere between 20 and 50 euros, which is crazy when it is just a reverse of the bank transfer which is the tech in the background

The point is it’s punititive to the merchant. You’re incentivised to avoid them pretty much at all cost

[ta12653421]

this insurance stuff rarely adds anything on top you would benefit of.

and for large transactions, most wont use a credit card (like buying a house)