ACH has reversal built in. Wire transfers are harder but there are remedies through the legal system. In neither case is the money simply locked up and never usable again.
If such insurance/service guarantees are of interest to the market, they will be provided.
The weird thing is people associate Visa transactions with business that are real legal entities that have contracts with Visa and you could sue, but as soon as you say Bitcoin they assume every transaction is like a Nigerian prince scam. These associations are the result of effective marketing by people who want you to feel that way.
>The bank doesn't even know if the chargeback is fraudlent or not and will take the money from you regardless of you wasting time countering the disputes to prove that it is fraudlent. Thus, it hurts both the merchant and the consumer and that system can be abused.
Merely because the US system of handling chargebacks is dogshit and your companies have taken to making processes so unpractical that chargebacks are common practice. European banks perform 2FA checks for online purchases, and chargebacks are harder to execute, while still doable.
But sure, throw the baby with the bathwater, the bath, the house and the city's water system because you forgot to decrement a counter in a shitty contract.
> The unforgiving-ness and irreversibility of cryptocurrency are the reasons that it will never gain significant adoption by “normies”.
Exactly. Such that bank / wire transfer, didn't take off or gained significant adoption by normies?
> With fiat currency, we have many systems for dispute resolution and restitution. They are not all perfect but they work often enough that people still have faith in the system.
Chargeback fraud for both the consumer and the merchant is good as well? Is that why when the payment processor encounters tons of friendly fraud in a merchants account they lock up your account and you're unable to accept payments anymore, effectively killing your business.
The bank doesn't even know if the chargeback is fraudlent or not and will take the money from you regardless of you wasting time countering the disputes to prove that it is fraudlent. Thus, it hurts both the merchant and the consumer and that system can be abused.
> Most people do not have the risk tolerance to use a system where one typographical error can irreversibly lose your life savings (for example), the product of decades of work.
Yeah, most businesses and banks are doing just fine with the reversibility of wire transfers aren't they? [0]
[0] https://www.bbc.co.uk/news/business-59826345