> (FWIW, the above is why I don't understand the excessive promotion of "OMG LOL no chargebacks FTW!")
That flexibility is great. I'd be perfectly happy to buy from a lot of merchants that I trust (say, Amazon.com) without the ability to chargeback. That will lower costs for them, which will be passed on to the consumer (if the overall market is competitive).
OTOH, merchants that aren't widely trusted may "have" to allow customers to purchase using an escrow-like service that allows chargebacks.
In fact, maybe the same merchant could offer both options; you pay a tiny bit more for escrow.
Good point. I trust Amazon enough to complete a purchase with Bitcoin. I think the term escrow would be too confusing for most customers but that'll probably work out as the platform develops.
I meant "escrow-like" in the sense that PayPal and credit cards (with their evil chargebacks!) are escrow-like: you don't use the term, you just know that you have recourse if you're stiffed and that the payments are reversible.
The difference is that you don't have to be as big (or as versed in financial regulation) to provide such a service: if you're trusted among the gambling community, you can provide "PayPal with Bitcoins" for them, because they trust you. If you're trusted among arts and crafts dealers and their customers, you can be the trusted party that enables chargebacks on Bitcoin in that area. Etc.
It's going to be exciting to see how these escrow-like services develop over the next few years. Specifically because, as you mentioned, you don't have to deal with a lot of regulation that comes a traditional product.
I wonder if companies like Strip/PayPal/Visa will try and lead the way or if they'll wait and be the acquirers.
That flexibility is great. I'd be perfectly happy to buy from a lot of merchants that I trust (say, Amazon.com) without the ability to chargeback. That will lower costs for them, which will be passed on to the consumer (if the overall market is competitive).
OTOH, merchants that aren't widely trusted may "have" to allow customers to purchase using an escrow-like service that allows chargebacks.
In fact, maybe the same merchant could offer both options; you pay a tiny bit more for escrow.