I will also comment that they don't have the kick in the pants because they mostly shift the risk. If a merchant accepts a stolen credit card, they simply rever

I will also comment that they don't have the kick in the pants because they mostly shift the risk. If a merchant accepts a stolen credit card, they simply reverse the charge and the merchant is left holding the bag. They just ship out a new card and reverse charges. They do not have a financial incentive to fix this problem because it doesn't affect them much. If it does they will probably just collude with each and raise rates across the board. It may take outside incentive (regulations) to make them fix it.