[previousjs]

See how credit cards work (at least where I have lived). Someone fraudulently cloned my card after a petrol station visit and I got it fixed as soon as I noticed the weird transactions. The bank or VISA footed that cost. UK has statutory law on this. Probably because of how CCs used to work with that carbon copy crap.

[EvanAnderson]

In the US merchants are the ones footing that cost, either in merchant fees (which they then pass on to the Customer in the form of higher prices) or directly (by the credit card company refusing to pay the merchant).

It might be different now, but in the late 90s I sold some laptops to a buyer using a stolen credit card. The cardholders had no fraud liability but my company ended-up having to eat the cost of the stolen laptops. The credit card company simply didn't pay the amount of the fraud in their settlement with us.