How can we make bitcoin transaction refundable?

[GG_Maker]

When I was reading an article, I came across a disadvantage of bitcoin that stated that there "No Chargebacks or Refunds" in bitcoin transactions. What do you think can be the way forward in solving this problem? Many, regardless of whether you are pro-bitcoin or anti-bitcoin, your interest is in making sure that transactions where currency is involved have a Charge-back or Refund policy.

Below is what the article said on this point: "No Chargebacks or Refunds"
One of Bitcoin’s biggest drawbacks is a lack of standardized policy for chargebacks or refunds, as all credit card companies and traditional online payment processors have. Users affected by transaction fraud – for instance, they purchase goods that the seller never delivers – can’t request a refund through Bitcoin. In fact, Bitcoin’s decentralized structure makes it impossible for any single party to arbitrate disputes between users. While miners take responsibility for recording transactions, they’re not qualified to assess their legitimacy.
Some newer cryptocurrencies, such as Ripple, have rudimentary chargeback and refund functions, but this feature has yet to be built into Bitcoin.

[HabBear]

Why do you want to make Bitcoin transactions refundable? No monetary system or currency in the world offers refunds. The Dollar, Euro, Yen, Yuan, the list goes on...none of them offer refunds.

To do so you'd need to centralize the administration of transactions.

Additionally, how do you verify that a refund request isn't fraudulent?


You've got the following concerns to contend with:

• Verifying that a refund request is legit (and not fraud)
• Suspend or hold the value of transactions for whatever grace period is allowed to honor refunds
• Figure out how to handle refunds requested of wallets that no longer have funds to recover it

It's companies and people that offer refunds, not currency, not monetary systems. If you want refundable bitcoin transactions then only transact with companies or people that are willing to refund your transaction.

[ProstoInvestor]

Return incorrectly sent or bitcoins spent on payment for goods can not be and I believe that this is very good. Yes, purchases through the crypto currency in this case may have difficulties, but I think that this problem can be solved. For example, use insurance services that will be intermediaries between the seller and the buyer.

[muraqaba]

its a big issue i have with bitcoin. no charge backs makes it easy for you to get scammed and the scammer gets away scott free.

[chaoscoinz]

When I was reading an article, I came across a disadvantage of bitcoin that stated that there "No Chargebacks or Refunds" in bitcoin transactions. What do you think can be the way forward in solving this problem? Many, regardless of whether you are pro-bitcoin or anti-bitcoin, your interest is in making sure that transactions where currency is involved have a Charge-back or Refund policy.

Below is what the article said on this point: "No Chargebacks or Refunds"
One of Bitcoin’s biggest drawbacks is a lack of standardized policy for chargebacks or refunds, as all credit card companies and traditional online payment processors have. Users affected by transaction fraud – for instance, they purchase goods that the seller never delivers – can’t request a refund through Bitcoin. In fact, Bitcoin’s decentralized structure makes it impossible for any single party to arbitrate disputes between users. While miners take responsibility for recording transactions, they’re not qualified to assess their legitimacy.
Some newer cryptocurrencies, such as Ripple, have rudimentary chargeback and refund functions, but this feature has yet to be built into Bitcoin.

Simple, implement a unique smart contract that is witnessless, capable of fulfilling the agreement to transact only upon some certain required conditions being met, agreed upon by the two or more parties involved with the transaction. This way, the payment will be negligible if the conditions aren't met, thereby issuing a reimbursement.
  Now if only I was tech smart, luckily we have such a diverse community of crypto enthusiasts, someone will certainly fix this issue. I'm sure their are already protocalls out that tack such a problem as this.

[ImHash]

its a big issue i have with bitcoin. no charge backs makes it easy for you to get scammed and the scammer gets away scott free.

That is where escrows come in to prevent you from getting scammed, Use escrow and make sure you are using a good escrow. You really can't blame bitcoin for this because companies like paypal are much easier to use their chargeback feature and scam people, That's the whole point of bitcoin, To have no chargeback and be decentralized.

Simple, implement a unique smart contract that is witnessless, capable of fulfilling the agreement to transact only upon some certain required conditions being met, agreed upon by the two or more parties involved with the transaction. This way, the payment will be negligible if the conditions aren't met, thereby issuing a reimbursement.
  Now if only I was tech smart, luckily we have such a diverse community of crypto enthusiasts, someone will certainly fix this issue. I'm sure their are already protocalls out that tack such a problem as this.

Don't you know that bitcoin has escrow protocol? It's not yet implemented but it's there in the design, It just needs some development to have such smart contracts to act as escrow without the need of a third party.

[franky1]

its a big issue i have with bitcoin. no charge backs makes it easy for you to get scammed and the scammer gets away scott free.

its an issue i have with creditcards/paypal.. ALLOWING chargebacks.. a customer gets the goods and gets their money back, because its then easy to chargeback scam a seller to get goods and run off with the money aswell scott free

[amacar2]

When I was reading an article, I came across a disadvantage of bitcoin that stated that there "No Chargebacks or Refunds" in bitcoin transactions. What do you think can be the way forward in solving this problem? Many, regardless of whether you are pro-bitcoin or anti-bitcoin, your interest is in making sure that transactions where currency is involved have a Charge-back or Refund policy.

Credit card chargebacks are pain the the a** for merchants and same with paypal like payment methods where customer can file chargebacks even after getting goods at good condition.

Bitcoin is here to solve this problem and this is not actually a problem in bitcoin 

[hatshepsut93]

Use escrow, a lot of people who buy/sell things on this forum are using one, especially for moderate and big transactions. If Bitcoin will be widely used commercially, for example by sites like Amazon and Ebay, they will be acting as middleman and only forwarding coins to the seller after the buyer confirms the purchase. There's already a site called XBTFreelancer where people can earn Bitcoins by working on projects, or hire people, all with Bitcoin and it acts like that - employers deposit Bitcoins and they are released after both sides agree to do so, if there is some dispute, admins step in and solve it.

[SnapDown22]

When I was reading an article, I came across a disadvantage of bitcoin that stated that there "No Chargebacks or Refunds" in bitcoin transactions. What do you think can be the way forward in solving this problem? Many, regardless of whether you are pro-bitcoin or anti-bitcoin, your interest is in making sure that transactions where currency is involved have a Charge-back or Refund policy.

Below is what the article said on this point: "No Chargebacks or Refunds"
One of Bitcoin’s biggest drawbacks is a lack of standardized policy for chargebacks or refunds, as all credit card companies and traditional online payment processors have. Users affected by transaction fraud – for instance, they purchase goods that the seller never delivers – can’t request a refund through Bitcoin. In fact, Bitcoin’s decentralized structure makes it impossible for any single party to arbitrate disputes between users. While miners take responsibility for recording transactions, they’re not qualified to assess their legitimacy.
Some newer cryptocurrencies, such as Ripple, have rudimentary chargeback and refund functions, but this feature has yet to be built into Bitcoin.

maybe you are conveying is one of the weaknesses and risks in investing with bitcoin I'm sure one day bitcoin will solve the problem and risk

[hadveach]

Why do you want to make Bitcoin transactions refundable? No monetary system or currency in the world offers refunds. The Dollar, Euro, Yen, Yuan, the list goes on...none of them offer refunds.

To do so you'd need to centralize the administration of transactions.

Additionally, how do you verify that a refund request isn't fraudulent?


You've got the following concerns to contend with:

• Verifying that a refund request is legit (and not fraud)
• Suspend or hold the value of transactions for whatever grace period is allowed to honor refunds
• Figure out how to handle refunds requested of wallets that no longer have funds to recover it

It's companies and people that offer refunds, not currency, not monetary systems. If you want refundable bitcoin transactions then only transact with companies or people that are willing to refund your transaction.

yes, I agree with you, when the bitcoin transaction, then there is no refund. this is a user mistake. and this bitcoin technology, not the same as fiat, or with other currency. digital has a shape of transaction that is easier and safer, but will be risky if our transaction is wrong.

[pooya87]

this is not a  disadvantage and the author of what you were reading haven't even read about bitcoin! even if you read the paper you can see this clearly there. as a matter of fact having "charge back" features is one of the reasons bitcoin was created because it is a huge flaw of a payment system to have charge backs and this has been one of the biggest sources of fraud in those systems such as credit cards, paypal,... that has damaged businesses greatly.

if you are so concerned about a trade that you are doing (like buying something from a shop) then use multisignature features that bitcoin offers. that can easily perform what you require.

[VitKoyn]

When I was reading an article, I came across a disadvantage of bitcoin that stated that there "No Chargebacks or Refunds" in bitcoin transactions. What do you think can be the way forward in solving this problem? Many, regardless of whether you are pro-bitcoin or anti-bitcoin, your interest is in making sure that transactions where currency is involved have a Charge-back or Refund policy.

Below is what the article said on this point: "No Chargebacks or Refunds"
One of Bitcoin’s biggest drawbacks is a lack of standardized policy for chargebacks or refunds, as all credit card companies and traditional online payment processors have. Users affected by transaction fraud – for instance, they purchase goods that the seller never delivers – can’t request a refund through Bitcoin. In fact, Bitcoin’s decentralized structure makes it impossible for any single party to arbitrate disputes between users. While miners take responsibility for recording transactions, they’re not qualified to assess their legitimacy.
Some newer cryptocurrencies, such as Ripple, have rudimentary chargeback and refund functions, but this feature has yet to be built into Bitcoin.

Sure chargeback has an advantage but there are also disadvantages of having a chargeback system, first of all there should be a company that will monitor all transactions and give service to all people, making it a centralized currency which is oppose to original purpose of Bitcoin being a decentralized cryptocurrency. However, it is possible to have a chargeback if an online wallet (with KYC) provider wants to, what will happen is it will function just like paypal and credit cards. For me there's no need for this because we have a lot escrow service out there.

[monkeydominicorobin]

When I was reading an article, I came across a disadvantage of bitcoin that stated that there "No Chargebacks or Refunds" in bitcoin transactions. What do you think can be the way forward in solving this problem? Many, regardless of whether you are pro-bitcoin or anti-bitcoin, your interest is in making sure that transactions where currency is involved have a Charge-back or Refund policy.

Below is what the article said on this point: "No Chargebacks or Refunds"
One of Bitcoin’s biggest drawbacks is a lack of standardized policy for chargebacks or refunds, as all credit card companies and traditional online payment processors have. Users affected by transaction fraud – for instance, they purchase goods that the seller never delivers – can’t request a refund through Bitcoin. In fact, Bitcoin’s decentralized structure makes it impossible for any single party to arbitrate disputes between users. While miners take responsibility for recording transactions, they’re not qualified to assess their legitimacy.
Some newer cryptocurrencies, such as Ripple, have rudimentary chargeback and refund functions, but this feature has yet to be built into Bitcoin.

You mentioned Ripple. Have you ever used Ripple.  If you ever lose your backup wallet you will lose all your Ripple. Refund will only work if you have the backup file but once you you lost it is as frustrating as other cryptocurrencies. If you want refund use escrow services or better yet a smart contract. You are always looking for chargebacks and refunds even though the fiat system fails as well when it comes to this issue.

[Pursuer]

Some newer cryptocurrencies, such as Ripple, have rudimentary chargeback and refund functions, but this feature has yet to be built into Bitcoin.

Ripple is a centralized altcoin that the owners control everything including your wallets! in the eyes of the public it is like any other cryptocurrency but the fact is in the past they have shown that they can easily put their hands in your pocket and take the coins you have. so the features of centralized payments systems like paypal is also available in centralized altcoins like Ripple.

this is not something we  want or need for bitcoin which is why it doesn't exist.

[Crypto_Sassy]

When I was reading an article, I came across a disadvantage of bitcoin that stated that there "No Chargebacks or Refunds" in bitcoin transactions. What do you think can be the way forward in solving this problem? Many, regardless of whether you are pro-bitcoin or anti-bitcoin, your interest is in making sure that transactions where currency is involved have a Charge-back or Refund policy.

Below is what the article said on this point: "No Chargebacks or Refunds"
One of Bitcoin’s biggest drawbacks is a lack of standardized policy for chargebacks or refunds, as all credit card companies and traditional online payment processors have. Users affected by transaction fraud – for instance, they purchase goods that the seller never delivers – can’t request a refund through Bitcoin. In fact, Bitcoin’s decentralized structure makes it impossible for any single party to arbitrate disputes between users. While miners take responsibility for recording transactions, they’re not qualified to assess their legitimacy.
Some newer cryptocurrencies, such as Ripple, have rudimentary chargeback and refund functions, but this feature has yet to be built into Bitcoin.

I  think you can use Multisig wallet or escrow for the payment if you are not sure of product or service.
Most of the service chargeback happens because company save your CC details and put recurring payment for next month.
Use of BTC will guarantee that no body can charge  you autmatically

[spadaccino]

If I were your friend and you send me some coin wrongly, I can send it back to you minus fee's mining.
That's fair, but if you put another wrong address that tou do not know who belongs to, that's buddy is a one way trip.

Be wise and think twice and remeber to double check before sending

[sublime5447]

I think with a decentralized infrastructure like Bitcoin it's almost impossible to create a refund system, because no one can judge which transaction is valid for refund or not. refund in BItcoin can also create security holes for its users rather than providing protection to users.

[muraqaba]

its a big issue i have with bitcoin. no charge backs makes it easy for you to get scammed and the scammer gets away scott free.

its an issue i have with creditcards/paypal.. ALLOWING chargebacks.. a customer gets the goods and gets their money back, because its then easy to chargeback scam a seller to get goods and run off with the money aswell scott free

if you have proof of delivery then you wont have this issue . i always add tracking to my shipping so buyers cant say they didnt get the item.

[player514]

When I was reading an article, I came across a disadvantage of bitcoin that stated that there "No Chargebacks or Refunds" in bitcoin transactions. What do you think can be the way forward in solving this problem? Many, regardless of whether you are pro-bitcoin or anti-bitcoin, your interest is in making sure that transactions where currency is involved have a Charge-back or Refund policy.

Below is what the article said on this point: "No Chargebacks or Refunds"
One of Bitcoin’s biggest drawbacks is a lack of standardized policy for chargebacks or refunds, as all credit card companies and traditional online payment processors have. Users affected by transaction fraud – for instance, they purchase goods that the seller never delivers – can’t request a refund through Bitcoin. In fact, Bitcoin’s decentralized structure makes it impossible for any single party to arbitrate disputes between users. While miners take responsibility for recording transactions, they’re not qualified to assess their legitimacy.
Some newer cryptocurrencies, such as Ripple, have rudimentary chargeback and refund functions, but this feature has yet to be built into Bitcoin.

That article is actually incorrect. There's a reason why a lot of companies wait for at least 1 confirmation before sending you whatever you bought. I'm not going to go into detail about it just because not a lot of people know about it, so there's no reason to spread info about it. Bitcoin does have the ledger system that lists out all of the transactions, so there's technically a list of every transaction made. There's nothing stopping someone from finding a transaction based on a transaction ID. The only part that people have issues with is the fact that both parties are linked by an anonymous address.