Card payments are expensive for multiple reasons, the biggest one is that it involves multiple trusted peers that will refund your money if anything goes wrong.

And to be fair, EU regulations have very successfully brought these fees to about half of the typical market-driven price we see in other parts of the world. I'm not saying they cannot be decreased even further, and the EPI was created specifically for that, but you cannot deny the situation in Europe isn't too bad.

Providing one-way, immutable money transfers is inherently cheap. Even SEPA transfers, which are reversible in some cases, are incredibly cheap. As you listed yourself, if you need to handle fraud with low transaction costs, that instantly discards permissionless blockchains; you're essentially going back to a centralized, federated network of trusted peers.