2) A chargeback mechanism needs to be put in place, to provide a form of trust, or else consumers will continue to use their credit card.
Chargeback mechanism is bullshit. Look at PayPal doing chargebacks whenever they want. You can be scammed with this chargeback anytime, and I though stealing money (chargeback) is crime, oh boy I was so wrong!
Isn't escrow another option for this problem, although I'm not sure how safe it is if the seller himself can decide when to release the funds instead of an intermediare.