Yea I’m not proposing to replace low security credit cards with low security debit card this is a silly strawman.
EDIT: I see the general problem of origination fraud. But that can be mitigated by imposing limits and requiring extra levels of authentication for bigger payments.
> EDIT: I see the general problem of origination fraud. But that can be mitigated by imposing limits and requiring extra levels of authentication for bigger payments.
Which are exactly the kinds of things credit cards do, but it can't be perfect so they still suffer losses, so they still have to charge a percentage.
(Of course a lot of the percentage can go to rewards programs, so we're talking about the percentage once those are accounted for.)
In the US you can take money from a credit card by just using the that’s plainly written on it. That’s not what I would call making an effort at origination fraud prevention.
You said you don't want the ability to do chargebacks, but chargebacks solve two different problems: 1) origination fraud (i.e. someone not you originates a transaction from your account) and 2) merchant fraud (i.e. goods not as described/unsatisfactory/undelivered).
It's fine if you say, yeah I can do without #2, but realistically you cannot do without #1 in any digital payment scheme that will have wide acceptance so a chargeback mechanism is required.
The only settlement methods we have that do without both protections are cash, cashiers checks, and wires. Setting aside cash the other two are a pain in the ass to originate exactly because they are non reversible.
EDIT: I see the general problem of origination fraud. But that can be mitigated by imposing limits and requiring extra levels of authentication for bigger payments.