What you describe matches my understanding perfectly. Even if you leave finance charges out of it and are discussing debit cards - the interchange revenue is w

What you describe matches my understanding perfectly. Even if you leave finance charges out of it and are discussing debit cards - the interchange revenue is way more than enough to cover fraud liabilities. Throw in account fees, and you've got yourself a profitable product. I was working at a small bank during ye old Target/Heartland breach years, and the only time I heard dissatisfaction expressed at the security status quo was when the breaches forced large-scale card reissuances. General fraud scaled proportionally with transaction volume, and was easy to deal with. Mass-reissuance didn't.