I work in the credit card industry. It's more complicated then that. Depending on who has EMV enabled correctly greatly shifts the fraud load. But banks can and

I work in the credit card industry. It's more complicated then that. Depending on who has EMV enabled correctly greatly shifts the fraud load. But banks can and do pay a huge part of the fraud which is passed on to consumers in higher interest rates. Merchants pay "cashback" by some definition but it's fungible. If there were no cashback that money would go directly to the banks and the end user would have lower interest rates.