>>>Most chip sellers like us are not "merchants" and do not bear the risk of loss in transit.

Guess what? The law isn't so clear. There is no burden on the buyer to determine whether or not he/she is dealing with an actual merchant in an online transaction. The buyer may assume that he/she is dealing with the merchant and this is why credit card companies will credit your account for delivery failure.

It doesn't matter who you are dealing with if you use a check or money order regardless of whether or not "insurance" was involved. Your pretty much screwed in the transaction if something goes wrong and the seller doesn't want to make it right.