You are thinking only from the side of a customer, who already has it easy with the existing payment networks.
If you are a customer that wants to make a transaction that can be reversed, you go for the credit card. If the value of the transaction is not high enough for you to care (micropayments) or if you rather lose some money but not give away your data, you go for crypto.
The problem that crypto can solve is for the merchants, like TFA. Patreon charges absurd rates because payers are problematic.
(Edit: once again, the anti-crypto crowd decides to downvote reflexively and ignore everyone that brings legitimate use cases. Why is it so hard to at the very least consider the point that others are trying to make?)
Because you're moving risk around without fixing anything.
Why would payers use a system which allows fraudsters to screw them over without recourse?
Crypto is not a solution because this is one of many problems that can't be solved with technology.
The real issue is that some people are consistent bad actors. You can't deal with that on a per transaction basis.
You'd need some kind of social credit system which assesses behaviour for trustworthiness accurately, independently, and objectively - instead of by personal feedback or by half-finished algorithm without appeal.
Even if such a thing were possible, everyone would consider it an intrusion on their privacy.
Do us a favor: instead of nitpicking to attack something that I never said, please consider the best possible interpretation of an argument.
When I say about eliminating fraud, I mean fraudulent payments. What happens after the transaction is a separate problem, and not one that is meant (or possible) to be solved by crypto.
If you as a customer want more safeguards, then of course it is not recommended and you should use other alternatives.
> You are thinking only from the side of a customer, who already has it easy with the existing payment networks.
Merchants factor processing fees in when determining pricing which means the cost ultimately gets passed on to the customer. The merchant would of course like lower transaction fees.
But legitimate merchants also want to comply with consumer protection laws and have happy customers even when unpleasant things like mistaken charges, stolen credentials, etc. happen. There is a real value provided to both buyers and sellers when transactions are regulated and reversible. The payment processor's fee is the cost of that value.
Now, it may be that payment processing is a horrendously inefficient market and the processing fees are much higher than they need to be given the value they provide because of lack of market competition.
However, your product does not appear to compete with other payment processors, because it offers little of the value that they provide.
> The problem that crypto can solve is for the merchants, like TFA. Patreon charges absurd rates because payers are problematic.
Yes, and your product doesn't charge those rates... but nor does it make payers any less problematic. Fraud still happens. People still get their identity stolen, or have their kids grab the phone and buy $10,000 in Robux. It's just that with your product, merchants don't have to care.
You have to wonder what kind of merchants would consider that system a significant win. This sounds like tour company buying a passenger bus and choosing the cheapest bus with no seatbelts or a roof. Hey, it saves them money! But, you know, it's not the best deal for the passengers.
If you are a customer that wants to make a transaction that can be reversed, you go for the credit card. If the value of the transaction is not high enough for you to care (micropayments) or if you rather lose some money but not give away your data, you go for crypto.
The problem that crypto can solve is for the merchants, like TFA. Patreon charges absurd rates because payers are problematic.
(Edit: once again, the anti-crypto crowd decides to downvote reflexively and ignore everyone that brings legitimate use cases. Why is it so hard to at the very least consider the point that others are trying to make?)