Originally Posted by
arlflyer
In general, the lack of verification of identity by merchants for CC users is one of those things that is surprising when you step back and think about it. But some baseline level of fraud is just baked into the system and everyone is fine with it.
Checking ID is an extra barrier to credit card use. This might be enough to discourage some purchases, or have people switch to cash. The credit card companies have probably figured out that the extra revenue is worth the fraud losses.
When credit cards first came out, they were much more cumbersome to use than cash, so this may have been more relevant than it is today.