This article should be named retail fraud, not bank fraud.
The bank does not absorb the loss, the retailer does (at least with card not present). So I don't know what the "cost to the bank" could be...
Internet, mail order, and telephone order are "card not present" transactions. If a credit card customer has their account stolen or "says" that they did not make a purchase, it goes like this:
1. The bank deducts the disputed amount from the retailer's bank account.
2. The bank sends a notification letter the the internet retailer. They demand a signed and imprinted receipt of the transaction from the retailer. (for physical goods, a signed delivery receipt MAY be ok)
3. The internet retailer can not provide this imprint, so they lose the dispute.
4. The bank may deduct an addition "chargeback fee" from the retailer's bank account. This is usually about the same cost as a bounced check, a $20 - $50 fee.