You know, I am always surprised there isn't more of this going on. Not just online, everywhere. CCs are just not a great solution to remote or cashless payments.
They are when you use a good CC company. I've had AMEX charge-back numerous deadbeat merchants and automated payment BS. They even got me $1,500 back from Paypal, which is basically a black hole for your money.
Which is the other end of the problem: deadbeat customers charging back.
Ironically, that is probably one of the things keeping back ecommerce. The cost of this purchase security is a very high cost to retailers. I've heard some say that chargeback costs (including software, security mechanisms customer service staff calling customers, verifying liaising with police, etc.) amount to about 10% -20%.
The CCs, being oligopolistic monstrosities can secure customers, but that doesn't mean the system works well.
