I take your point however it doesn't have anything to do with fraud or my comfort level with carrying a lot of cash, you're talking merchant fees.
To which I say, feel free to accept cash or checks only if that works better for your business. I know many that operate that way, my own business included.
This certainly can happen anywhere. I've been through this twice. Once after a trip to Jamaica and another after a trip to Vegas. Both times the credit card company took care of it and issued me a new card. I do try to take as much cash as possible when I travel to these places but sometimes you just have to use your card. Its why they offer protection. You see stories all the time on the Canadian news of people who are arrested for these card copying schemes. Even where I am from they caught a couple of guys from Montreal who were rigging up the ATM's in the 7-Eleven's.
You should just be careful as you can and if something happens trust that your card company will do their best to look after you.
Some people were born in the wrong century....I was born in the wrong country!
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Credit card fraud just happened to us. Just got back from Negril and went to local grocery store. That's the only place the card was used. Never took it to Jamaica.