Here is what Wikipedia says about chargebacks.
Overview
The chargeback mechanism exists primarily for consumer protection. Holders of credit cards issued in the United States are afforded reversal rights by Regulation Z of the Truth in Lending Act. United States debit card holders are guaranteed reversal rights by Regulation E of the Electronic Fund Transfer Act. Similar rights extend globally, pursuant to the rules established by the corresponding card association or bank network.
A consumer may initiate a chargeback by contacting their issuing bank, and filing a substantiated complaint regarding one or more debit items on their statement. The threat of forced reversal of funds provides merchants with an incentive to provide quality products, helpful customer service, and timely refunds as appropriate. Chargebacks also provide a means for reversal of unauthorized transfers due to identity theft. Chargebacks can also occur as a result of friendly fraud, where the transaction was authorized by the consumer but the consumer later attempts to frauduently reverse the charges.
I'm sure in a perfect world that is how it works and Wikipedia don't write the policies these CC co. go by. It's the same in the insurance industry. Too much liability causes the rates to increase to the consumer. What Isaac needs to do is find a way to have peoples accounts verified maybe like the ECF classifieds did.