Comment by abdullahkhalids
1 day ago
Chargebacks and fraud protection are largely needed in the credit/debit card system because you go around handing people the key to your safe to merchants and ask them to take whatever they want. And pinky promise not to share the key with anyone else.
Once you have sane system like pix or upi, there is far less need for chargebacks and frauds.
Fraud protection in this case doesn't mean protection against having your card copied, it means protection when you've made a purchase and didn't receive the product you were promised.
Which payment method would you prefer to use for an online purchase: One where you have no chance of getting your money back if it turned out to be a scam, or one where you have protection against this?
UPI has a government controlled chargeback mechanisms [1]. Why would any system of payment not have a chargeback mechanism if someone stole from you? You can even chargeback cash by going through the legal system. Obviously, the better system for online transactions is an escrow system.
In any case, my politics demands not depending on the bureaucracy of a big corporation for legal redress.
[1] https://www.stashfin.com/blogs/dispute-upi-transaction-guide
That's great, and something which all other payment systems should also adapt. As it stands now, no payment method offers any fraud protection mechanism except for Visa and Mastercard - and also UPI as you mention. Not even old school bank transfers have fraud protections.
> Why would any system of payment not have a chargeback mechanism if someone stole from you?
I couldn't agree more.
I only notice one problematic thing there in your link: Wrong recipient. And it says you cannot get your money back without the cooperation of the recipient. With card payments you never risk paying to the wrong recipient by typing a number wrong or such.
1 reply →