But it's the issuer, not the network, that bears that credit risk. When a cardholder defaults, the issuer takes the loss.
The card issuer/bank provides protection to the buyer. NO ONE provides protection to the seller. The seller's are 100% expose and lose most disputes. With EMV, some of the risks will move but not much. All online transactions are keyed, so not subject to any protection.
Visa doesn't sort out anything, they provide a network and take a cut. Disputes happens between issuer, processor in the middle and merchant. If the processor fails to recover the money from the merchant then the processor is on the hook.
No cash back. No fees... Just simple transactions, like walking upto the cash register and paying with cash.
Credit cards act as an escrow service to protect against all of those things. Cash (and its online equivalent) has a place in the world, but so do credit cards.
Suuuuure
Filling cash registers, sending money to the bank and counting money is free, and there's no loss from theft or mistakes
Oh they aren't? Then money is not free of fees
As a seller I know that if a Visa payment clears I'll be getting that money, even if the customer doesn't have it. I don't need to arrange financing or risk taking a check that may bounce long after the customer has disappeared.
As a consumer, I get some measure of protection from fraud and have the option of doing a chargeback and letting Visa sort things out with the vendor if something is not as described.