If you think not in terms of security, but rather in terms of managing risk, this makes perfect sense. It doesn't make sense to pay $100 to stop $20 of fraud. Now what this particular store does is different than what other stores do, but this is the right way to look at the problem.
Thursday, April 28, 2016
Why is there so much credit card fraud?
Because implementing the new security technologies can cost a lot more than the fraud loss. From the comments at Brian Kreb's blog: