eblastics,
You are indeed correct. You have identified a major problem that has plagued the industry for years.
On our end, and from day one, we have always been very strict on chargebacks. We have a system of warnings and flags that notify webmasters the minute there is a problem. By the time they hit 0.3% chargebacks, let alone 1%, they are already hearing from us - not in a draconian way but they get our attention and our help. In almost all cases, webmasters work with us to lower their chargebacks.
It is funny that you mention Digiblaze. When that company went down, I talked personally with a number of webmasters who were using them and now looking for a new home. They proudly claimed they were doing in excess of $100k per month with "only" 2% chargebacks. I wished them best of luck in their search for a new third-party biller
