Thread: Does the merchant pay for credit card chargebacks?

That would be governed by your Merchant Agreement.

In the USA merchants are not required to ask for ID, only to perform these steps:

Originally Posted by AMEX Merchant Reference Guide

In-Person Charges refer to Charges in which the Card and Cardmember are present at the point of sale. An example of this is when a Cardmember presents a Card to a Merchant at a retail store.
For In-Person Charges, Merchants must:
verify that the Card is not visibly altered or mutilated,BB
obtain an Authorization Approval,BB
obtain signatureBB (when required) and verify that the signature is identical to the name on the Card*,
compare the signature BB(when obtained) on the Charge Record with the signature on the Card,
ensure the name that prints on the Charge Record matches the name on the front of the BBCard* (except if the Cardmember name is not captured on the Charge Record),
match the Card Number (on the front, and if present on the back of the Card) and Expiration BBDate to the same information on the Charge Record,
verify the Card’s valid date, andBB
verify that the customer is the Cardmember*. Cards are not transferable. BB
*Except for Prepaid Cards that do not show a name on their face.

Your relationship would be governed by the by your country's agreement.

Generally, you're responsible for chargebacks relating to poor products or service, but the card issuer overs fraud. But they noticed a lot of fraud at your establishment they would take notice and do something. Look at your Merchant Guide for better info.