> I don’t pay a fee on my credit cards, the merchant does

While that may be technically correct, it's ignorant of the fact that costs are always passed down the line in any economic relationship like you're describing.

That fraud protection costs the card issuers, which is the basis for that merchant fee, and the merchant passes the cost on in the form of higher prices. (Merchant accounts with higher fraud rates will pay higher fees!)

So from another perspective, you actually are paying the bill for those unknown percentage of frauds, which you wouldn't be as much on the hook for so directly if only everyone was responsible for their own individual security.