- Payment networks drop accounts with a too-high fraud rate. - They and similar businesses (e.g. Stripe) offer automated tools to deal with fraud… for a price.

- Payment networks drop accounts with a too-high fraud rate. - They and similar businesses (e.g. Stripe) offer automated tools to deal with fraud… for a price. Outcome: the incentive to minimize fraud, which is often a result of crap security from the payment network, is on merchants, who also get charged extra protection money to get payment networks to do stuff they ought to be doing in the first place.