KrKHeavy Artillery For The Little GuyPremium
They make the merchants eat fraudulent charges. If the banks were going to lose money, they'd make ID'ing mandatory, who knows what else.
The only exception is the pay-at-the-pump. When this was first introduced merchants were loath to risk it because of the current credit card rules basically said any unsigned outside transaction was considered un-secure and by default any chargebacks the merchants would lose. The credit card companies, eager to get several percentages of a multibillion dollar market finally compromised. Now they are liable up to $50 or $75 depending on the card. Now you know why some pumps shut off at $75!
However this too has it's drawbacks. Now that the banks are exposed to risk they take action when fraud occurs at a station. They lock them down with high security, make people enter zip codes, randomly deny the authorization to force the customer to go inside (where they can be seen, and have to sign.)
Of course customers get super pissed off at this and blame the station but the station has no choice--- it's imposed by the credit card companies. Well that's not true. They have a choice--- accept the restrictions and P.O.'ed customers OR stop taking credit cards altogether, which would be a kiss of death in today's pay at the pump age.
However, that's the exception. All other chargebacks and fraud, the credit card companies make the merchants eat it.
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini