[300bps]

Consumers are limited by law to a $50 loss for credit card fraud and every bank I know waives even that.

It is merchants (stores, internet sites) that bear the cost of fraud.

[chiefalchemist]

But what of the time, stress, etc.?

Merchants don't bear the cost, the consumer does. The merchant might not hand me a bill but that cost is embedded somewhere in the price.

The bottomline is the consumer pays. No matter how you cut it, the consumer always pays.