In theory merchants can notice some fraud signs so shifting fraud losses onto them gives an incentive to take action on those signs. In practice banks have a better overall view of fraud and this is just externalizing bank fraud losses onto stores.

> The problem with these is always who pays for fraud.

I'm curious how India's UPI handles fraud/refunds, as the system seems to have garnered near-universal praise.

Could you describe what is the "fraud" you are talking about ?

Like, if someone stole a credit card and use it to buy stuff ?