While crypto moves to make fiat money obsolete, credit and debit cards have been hard at work to make cash obsolete for many years now.

Payments cards work on Card Networks. These small plastic rectangles are merely front-end of an extremely complex grid of interactions between many financial entities. As payment cards offer extreme convenience in payment and handling of funds, and even taking on-demand loans, they have become one of the most prominent means of transacting. This gives Card Networks extreme leverage over merchants.

Card Networks--Visa, AMEX, Mastercard, Discover--provide consumers a no-fraud liability. This allows a consumer to easily contest any charge placed on a card. Once a consumer has done so, the merchant is immediately liable to return the money and to pay the Card Network a fine. The merchant has the option to argue the consumer's claim but that is a lengthy process and often difficult and expensive to litigate. So many merchants let it slide. Unsurprisingly, this feature of Cards is heavily abused.

Chargeback Pains

When a consumer contests a charge, a merchant is faced with a chargeback. The most common chargeback is actually classified as chargeback fraud, which occurs when a consumer contests a charge simply for fraudulent purposes.

This leads to the merchant losing the delivered product even though he/she has to return the money, and it must also pay a penalty.

As most industries have become extremely competitive, even a fraction of a percent of transactions resulting in charge-back fraud eats up earnings at a significant rate as aggregate margins are quite low.

To mitigate the impact of chargeback fraud, merchants use expensive SaaS and legal teams. Small companies even end up banning sales to certain countries. The first tactic is expensive and offers limited protection, and the second one comes off as discriminatory, reduces sales potential, and only cuts off a portion of potential chargebacks frauds.

Chargeback fraud is a hazard that massive e-retailers like Amazon may survive, but the average merchant cannot.

A Solution for All

XYO Network is a solution for companies of any size. Both small and large firms are prey to chargeback fraud. XYO Network provides a viable fix by allowing merchants to have a real-time tracking of products.

As the merchant can clearly see whether or not a product has been delivered to the right address, there is no means for any fraudulent activity to bypass this iron-grid solution. When a package reaches a customer, only then a payment would be received and thereby no attempts to contest the delivery could be made by any nefarious mind.

Additional Savings

The benefits of XYO extend to the chargeback penalties too. Clearly, merchants pay fewer chargeback fees if fewer fraud attempts are halted. But when a package is genuinely misdelivered or lost, the payment would not be received, and so the merchant does not need to process a return or pay a penalty chargeback fee to the Card Network.

XYO also provides a clear means to recover misdelivered or lost items. This would be a highly beneficial measure, particularly for merchants dealing with high ticket items.

XYO Network greatly reduces major operational difficulties faced by merchants. It completely nullifies the possibility of chargeback fraud, removes the cost of chargeback penalties in the case of a genuine chargeback, and XYO even offers a way to recover items that caused the genuine chargeback.

XYO Network will make the e-commerce an easier approach for start-ups and more profitable for the existing players.

Essential Information

🌐 Website: https://xyo.network/
💡 Whitepaper: https://xyo.network/whitepaper/
👨 ANN Thread: https://bitcointalk.org/index.php?topic=3040825.0
💻 Telegram: https://t.me/xyonetwork
⌚️ Token Sale: MARCH 20
📃 Ticker: XYO
👂🏻 Token Type: ERC20
🔗 Whitelist: YES
💰 Accepts: ETH

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