On the other hand, the EU caps credit card fees at 0.5% by law while in the US merchants will pay 3 times that at a minimum.
I suspect that in the US CC processors are incentivized to increase their processing fees to cover the cost of fraud instead of building features to prevent it because they can and it's easier than building features. Businesses are incentivized to increase prices to cover the cost of fraud (and CC processing costs) since processors offer such poor tooling to prevent it.
In the US the burden of fraud prevention is squarely on the honest consumer's wallet.
I suspect that in the US CC processors are incentivized to increase their processing fees to cover the cost of fraud instead of building features to prevent it because they can and it's easier than building features. Businesses are incentivized to increase prices to cover the cost of fraud (and CC processing costs) since processors offer such poor tooling to prevent it.
In the US the burden of fraud prevention is squarely on the honest consumer's wallet.