Here we have IC to do verification but some country there is no such thing. If you are foreigner, then passport would be the ID. Anyway, no ID required. Your nickname is registered with card company along with real name. That is verification by card company.

I don't think there will be any problem because they just rely on the chip. If owner reported stolen card, then the ID in the chip will get banned and any cloned card cannot be used. The shop will just follow standard procedure by card company like hologram and some other basic stuff to verify that the card is genuine. The rest of the risk on card company. Otherwise what is the advantage on the shop side if they also get charge for certain percentage for ease of business.

Last ti,e even worse when whenever card is used, there was no chip. All merchants do just put on machine with carbon paper on it and glide a roller to imprint detail printed on card. That was it. Small shops with no online access were target. I believe the card company still pay the shop and absorb the loss.