Please do look outside US market. In India two factor authentication via a text message to bank registered mobile number of the customer is mandated by law. Chargebacks here are virtually unheard of, probably most customers here don't even know what a 'chargeback' is.
The US is keeping its banking system primitive intentionally, as the government is hand in glove with greedy banks. Sending money whether to a business or an individual is free in India, for both parties.
Not having a process for chargeback removes buyer protection. This will make people risk averse and only deal with big and trusted companies like Amazon and Flipkart.
But in the US, I give my card to many small businesses knowing that I've chargeback as a tool. The businessess also ensure quality and delivery timing because payment processor is closely monitoring their chargeback rates.
One friend told me that in India, banks can freeze your account without a court order, I am not talking about a loan or credit card default.
Sending money is never free, there is always a cost associated with the activity. So which exact transaction is free?
The US is keeping its banking system primitive intentionally, as the government is hand in glove with greedy banks. Sending money whether to a business or an individual is free in India, for both parties.