You took the words out of my mouth. No merchants should accept this card unless they want to be liable for chargebacks. If this product is actually released I wouldn't be surprised if a clause is added to merchant agreements to explicitly disallow accepting this type of card.
Merchant agreements already disallow accepting it, since it is not a valid card - it's not issued by a valid issuer, it has no Visa/MC logo, it doesn't have the signature on it, etc - the 'Card Present' rules would say that this object is not a creditcard.
It's just like any cloned card - I can easily make a blank white card with a copy of my creditcard's magstripe, and technically it will work in a swipe POS-terminal, but any merchant is required to refuse such a card, and recommended to detain the card and me, if it's safe to do so, or call the cops.
