Comment by sk5t

I would argue that the merchant is pretty much on the hook for fraud, or even borderline chargeback situations, but where the credit processors add some proportional value is in loosening the purse strings generally. They are taking their bite out of the value side, not strictly the cost side. It's harder for a lot of customers to turn over $2,000 in hard cash than it is to swipe and pay $200 a month for a year.