Curious to listen to your ideas on how cost disputes will probably be dealt with with Bitcoin.
A current instance: I bought providers by an organization, and paid with bank card. Not proud of the outcomes, I ultimately needed to resort to disputing the cost with my bank card firm. In the end the issue was mounted and I cancelled the dispute and the corporate obtained their cost. However the energy of disputing cost was their incentive to resolve the issue.
As we migrate to BTC as widespread cash, there’ll nonetheless be a necessity for a layer to supply purchaser safety towards fraud – as all on-chain transactions are closing. Do you count on the present bank card firms will fill this position? Clearly this isn’t a Bitcoin-specific downside as the identical situation is current with money, however some middleman layer will probably be crucial for mass adoption. Or maybe fiat money will proceed, however solely as a layer 2. Ideas?
4 thoughts on “cost disputes & position of bank cards”
Actually, Bitcoin solves the problem you’re playing with, fraudulent chargebacks
It’s not the role of the payment system to resolve disputes
CC companies charge merchants extra for fraud risk, resulting in higher prices for all customers resulting in socialised cost of the fraud.
If you pay in bitcoin you should receive a lower price because you are a trustworthy client the merchant knows (and is not worried about) chargeback or fraud.
In the situation neither of you know each other and the risk of returns exist, then you should use an insurance provider/middleman/credit card to whom one pays for the service, either you (and you get the lower trusted price) or the merchant at the credit card price.
This is a hypothetical, as most merchants want happy customers, bitcoin or not. In my opinion the future and bitcoin will not be dissimilar to just paying in cash, and keep your receipt. You will get lower prices and the merchant will save money, as well.
Most likely we will see multisig TXs with arbitration companies. This is a pretty good system on DEXs like BISQ
Satoshi mentions setting up an escrow to protect buyers in the white paper. I recommend giving the white paper a read.
We already have some real world examples – I imagine it would work much like it did on the silk road website where people purchased illicit drugs. Ross Ulbright set up an escrow where funds would be held until the buyer confirmed they received the “product”. The bitcoin would then be released to the seller. If the buyer claimed they never got it, the funds would be returned to them.