(Yes, it is a real risk. Yes I know that you and me are not going to e so stupid. But I am not trusting this belief.)
If someone charges $5,000 to my credit card in error, I've got 30+ days plus to resolve with zero financial impact to me. If it doesn't get resolved in that time, I have the option to not pay the bill (or that portion of the bill), knowing that if the error is fixed, the penalties and interest will be waived.
in my case payment will fail due to spending limits (though repeated small charges would go through)
The banks themselves seem to be against it so they made me write emails explaining the situation, give the seller more time (1 month not enough) and then wait another few weeks for processing.
With a credit card (British), they just did it -_-
And let me mention how a SEPA payment means your money is gone unless the seller themselves agrees to refund.
Spiral of debt is only a risk if you have no discipline.
For those of us that do have discipline, CC's are great.
I bought a pair of speakers costing $2500. I tried to reach to the company for a return but no one would answer. No phone, no email, nada. 1 month return deadline was coming up and I called American Express. Within literally 10 mins (no wait at all), I filed a claim and was done with it. 60 days later, I got the money back. Turns out that they couldn't reach them either.
Credit cards are more consumer centric than merchant centric and they're a huge boon to otherwise rampant asshole behavior from merchants. I also run an online shop and its a pain in the neck when someome files a charge-back, we just consider it as part of the cost of doing business.
In last 20 or so years of using an AMEX card, I've filed half a dozen charge backs. It's an amazing company, it's better than any other CC company in my opinion. They also have one of the highest fees and it shows why - their customer service is absolutely top notch - red carpet, the works.