> you need a remedy for the inherent insecurity of credit cards
Fraud and theft are fairly general problems. I would direct your attention to /r/sorryforyourloss
> In other words, are merchants eating all the costs of fraudulent credit card transactions?
If the goods cannot be recovered, then yes, the merchant eats the costs.
> I guess either way the cost really gets passed on to us consumers in the end.
Someone will always be left holding the short end of the stick when fraud occurs. The alternative to shifting the liability to the merchant is the consumer being directly accountable (rather than vicariously as you're suggesting).
Fraud and theft are fairly general problems. I would direct your attention to /r/sorryforyourloss
> In other words, are merchants eating all the costs of fraudulent credit card transactions?
If the goods cannot be recovered, then yes, the merchant eats the costs.
> I guess either way the cost really gets passed on to us consumers in the end.
Someone will always be left holding the short end of the stick when fraud occurs. The alternative to shifting the liability to the merchant is the consumer being directly accountable (rather than vicariously as you're suggesting).