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> This "insurance" could be offloaded to a neutral third party that isn't controlled by the credit cards.

I had not considered this. My first thought is how technically and operationally complex it would be for an insurer to underwrite these transactions "on-the-fly" from merchants they don't know, but it is probably a great idea.



Look up “chargeback guarantee”. A lot of fraud vendors do this. Costs 2x or more though than the average transaction


You’re describing insurance on the merchants side. The post I was referring to described insurance on the consumer side.


> Costs 2x or more though than the average transaction

That's because they compete with credit card companies today. Make them more popular and I bet their costs would come down.




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