And rightfully so! What is stopping them from copying the PAN, expiry date and CVV2? I wouldn't give my card to anyone - that's what portable (wifi/BT) terminals are for.
Credit cards handle risk very differently than we do for account passwords. They expect numbers to leak regularly, but the downside of a leak is bounded in a way that password leaks often aren't, and the issuers and merchants eat those losses as a cost of business.
Even at drive-through restaurants, the cashier hands you the entire corded terminal through the window (well, most of the time contactless payments are used, in which case they simply hold it out for you to tap your card until they hear a beeeep). During Covid, most places mounted them on the end of a stick, and that practice has continued even once social distancing requirements were lifted.
No security is perfect but that's no reason to skip basic easy precautions