Crypto payments promise irreversible, trustless transactions, yet merchants are increasingly exposed to fraudsters who exploit informal refund processes or exploit vulnerabilities in buyer protection policies.

Merchants risk accepting crypto payments only to face off-ledger disputes, third-party arbitration, or even social engineering attacks, resulting in lost revenue and destabilized confidence in crypto as a viable payment channel.

This tension between irreversibility (core to crypto) and the need for recourse (core to payments) leaves both buyers and sellers exposed.

There is no industry-wide, transparent protocol for dispute resolution or fraud detection tailored to the unique mechanics of blockchain transactions.

Current ad-hoc approaches lack objectivity, scalability, and undermine user autonomy.

Technical, regulatory, and incentive misalignments persist, making standardized, fair chargeback handling elusive.