The problem is that consumers have given control of their debit cards over to the merchants. When they do this, they (possibly inadvertently) give them a blank checkbook. A credit/debit card should be more like a virtual wallet than a blank checkbook. I would love merchants to have to ask my - <i>not my banks</i> - permission each time they wanted to charge me.<p>The system right now relies on the honesty of the merchants. If all charges had to go through the consumer's approval first, then I don't think we'd see much of the free credit report scams anymore. Instead of having to call up a recurring (and unsolicited) biller, just decline all payments to the merchant and let the merchant figure out that they're not getting paid.<p>If I had the means, I think I would start a Bank 2.0. It would have a killer web interface, charge authentication through cell phones or control panel, and instead of dealing with loans and interest, I would probably make make money through Visa charges.