Who ultimately bears the loss is a complicated microeconomic question, which depends on price elasticities and the like.

At one extreme, the payment industry and the merchants could end up eating the entire loss in the form of lower profits. At the other extreme, the entire loss might fall on consumers in the form of higher prices for goods and services. In reality, some of the loss will be born by producers (i.e., stock holders) and some by consumers.

The only thing that is clear is that a 7 bp fraud rate means the economy as a whole loses $7 for every $10,000 transacted.