If bank transfers don't allow chargebacks, what holds people (like MtGox and other exchange sites) from using it?
Expensive and high risk. International wire transfers requires:
- sender to pay bank fee;
- merchant have to wait some days until payment is cleared (read no immediate goods delivery);
- merchant must to be sure this payment is not compromised or bank will report him to proper authorities/watch list.
Merchant that do not have stringent verification process will fall in troubles if they start accepting wires from everyone on Internet.
Are bank transfers quicker/cheaper/easier if they are within the same country?
For example, if MTGox had a trusted contact in several different countries through whom users could flow bank transfers would that be a satisfactory solution?
That would be a better way of doing it. Place a buffer of different exchangers in between mt gox just like liberty reserve does.