They deal with fraud by reversing transactions, and then charging a fee. So the merchant is out for the money used to pay for the thing, and also a fine is plac

They deal with fraud by reversing transactions, and then charging a fee. So the merchant is out for the money used to pay for the thing, and also a fine is placed on top of it. As far as I understand it, the card companies don't spend a nickel on compensating for fraud, they keep all of that fee.