In regards to the quote by Don Rhodes that banks eat the costs of credit card fraud ["Barred From the Card-Code Club," Travel Insider, Aug. 17]: In almost all cases, the costs of fraud are passed on to the merchant that processed the charge.
That was a great article except for the last line. Rhodes was wrong in saying about credit card fraud that "the banks eat that cost."
Banks do not eat those losses. The merchants that accept credit card charges are the ones who eat credit card fraud losses. That the banks and credit card companies are the protector of the card user is a fraud in itself.