Exactly, payment security is now entirely in the hands of the merchant. Whether this is preferable to existing payment systems is unknown at this point, but it'

Exactly, payment security is now entirely in the hands of the merchant. Whether this is preferable to existing payment systems is unknown at this point, but it's hard to make a compelling argument either way. Furthermore, credit cards aren't just payment methods--they represent credit extended to consumers by banks. This actually influences the money supply, since (1) consumers can potentially carry unsecured debt balances, and (2) consumers have less need to park money in savings since credit cards provide access to liquidity. In other words, there are a lot more factors in play here than just the transaction fees and fraud mitigation mechanisms.