Comment by calchris42

Your explanation is so much more succinct than the article!

I believe buried in there is one other factor that is somewhat related:

- reducing friction helps drive more legitimate business. Accordingly, over-aggressive anti-fraud practices can result in reduced sales.

A toy example: a business could eliminate exposure to credit card fraud by not accepting credit cards. That would however reduce overall sales.

I guess this can all fit within a “marginal cost” explanation though.