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As soon as you come across a charge that your review leads you to believe may be an unauthorized charge (card stolen or used without the cardholder’s approval) we recommend you to issue a full refund right away. If you do not, or fail to identify that the charge was fraudulent, the cardholder may open a dispute which will result in a chargeback.
More often than not, chargebacks are initiated by cardholders - but when it comes to lost or stolen cards, the bank may automatically file a chargeback to protect the cardholder while investigation to determine the legitimacy of the charge takes place.
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