Why dont banks offer a non chargeback-capable product?

[Lorenzo]

One of the major problems with exchanging Bitcoin and other cryptocurrencies with fiat currencies is that banks and most fiat payment processors such as PayPal support chargebacks. This can be a good thing when whoever received the money turns out to be a scam but can also be disadvantageous for legitimate sellers since a dishonest buyer could simply initiate a chargeback that leaves the seller out of pocket. Hence the reason why it's not recommended to use PayPal for exchanging BTC to fiat and why you have to submit various forms of ID to buy bitcoins on LocalBitcoins with anything other than cash.

Bitcoin and other cryptocurrencies are different since they are non chargeback-capable. Once you send bitcoins to someone, you can't ask a central authority to request for those bitcoins to be given back to you since there is no trusted third party that processes transactions. This places the responsibility of the trade solely on the buyer.

There are pros and cons to either system but what is obvious is that many people here quite like the non chargeback-capable nature of Bitcoin and prefer it to the traditional system. If such products existed in the fiat world then many of the current problems associated with exchanging Bitcoin and fiat currencies would no longer exist. So why have banks never offered a similar product? Why is it that every bank in every country so far has chosen to shy away from offering such a thing?

[panju1]

Letters of Credit??

[bronan]

It is clear why as a seller nobody want to deal with the chargeback deals, from what i sold almost 95% of the sales turned out to be a scam
I have done several ebay, paypal sells and ended up loosing my money. The so called buyers made a chargeback and poof gone my sold items and my money.
They simply provide the largest and easiest scam people without any problem service.
Now the most annoying is when i bought 1 freaking defect item and tried to get paid back, paypal refused to do so.
Its pretty funny that one who got stolen for a lot of money was not able to get back $100.
Obvious result is i am more cautious and no longer accept paypal or ebay at all, i removed my accounts and never use them again.
I wonder how amazon handles sales because i bought a few second hand items but they seem never came from the people mentioned selling, its almost if amazon is in the middle and checks the sold items. But i have never tried selling anything on amazon especially because it would involve alot of international shipping.
 
However there is not any real large trading site having a pay with bitcoin here.
On the other hand you still have the problem that if your the buyer you get scammed, so either way you never am sure unless your the seller.

[Orwell]

A product that isn't reversible probably isn't that good to them. If someone makes off with a lot of yours or their money they need a way to easily get it back. It makes sense from a business perspective to do this but obviously it can be exploited. Bitcoin can obviously be used to protect against people charging back but you're shit outta luck if you get scammed or hacked so it has positives and negatives.

[hua_hui]

Why dont banks offer a non chargeback-capable product?

Because banks are centralized financial institution and authorize the monetary flow. They claim to act for the interests of customers and made policy arbitrarily.

[CIYAM]

Chinese banks already do (as do their equivalent of PayPal) so to be more correct perhaps "western banks" should be in the OP title.

I have found from personal experience that if you transfer funds from one province to another then it cannot be reversed (if the funds have already been withdrawn from the other end for sure although am not sure whether reversal would be possible if the funds haven't).

Edit: Also I am pretty sure that SWIFT transfers cannot be reversed.

[Amph]

because it's a form of security and they are too much worried about it, usually the more security you offer, the more customers you get to deposit in your bank

and only "elite"(those above the average, not ordinary people, you know...) really want a non chargable products, the rest don't care at all, they only care about their money being safe