alt Hacker NewsVisa/Mastercard provides that because the US is a very untrustworthy country. I don't know the situation in Brazil, but here in Europe small claims court just works fine. I think it's pretty dysfunctional to have to rely on private companies for adequate legal protection.
(Brazilian here)
It works (passably) well here as well. However there's widespread lack of basic civic awareness which makes it harder for people to even know they could be settling such things on small claims court.