Most banks have a policy of pretty much protecting their customers from fraudulent cards. My wife dropped a card and by the time she noticed it a few hours later, there were about $1500 charges. She didn't have to pay a penny. Banks and merchants however feel that the risk of payout for them is worth the increased usage of the cards by customers. In some countries users are much more liable and are a lot more cautious, often avoiding using of cards altogether.

Multiple times over the years my own cards have been reissued with new numbers because of a breach somewhere (they never actually say), not due to lost card on my account. None of this has ever resulted in a cost to me.

Target, too, has stepped to the plate and claims they will bear the brunt of any customer losses.

Under those circumstances, why wouldn't customers decide to go back?

As long as banks and retailers cover costs, people aren't going to change (is this a good thing or a bad thing?)