Originally Posted by Lenny2

I disagree.
Banks take a loss because it costs them money to process the transaction reversals and to credit money back to your account.

They don't usually "eat" the charges though. Obviously if someone bought goods with a stolen credit card, the merchant in question didn't check the ID of the purchaser, and therefore they are liable for the charge.
The bank takes the money back from the merchant and gives it back to you.

They don't just say "damn, someone got their card stolen again so let's put up 1K of our money to make it right"